Core Scientific and TeraWulf’s reported profits include large non-cash gains. Their operating results and construction cash flows tell different stories.
Core Scientific and TeraWulf reported nearly $1.9 billion of combined third-quarter profit as they shifted from Bitcoin mining toward data-center hosting for AI customers. Their earnings included $1.76 billion of pretax non-cash gains from revaluing financial instruments.
The November 5 Core Scientific disclosure and November 6 TeraWulf disclosure show different operating outcomes for the quarter ended September 30, 2026. Core earned $72 million in operating income under U.S. accounting rules; TeraWulf recorded an $88 million operating loss. Core's operating result itself included a $19 million digital-asset fair-value gain. Hosting now supplies most of both companies' revenue, following their shift from Bitcoin mining toward computing leases. Assessing whether the conversions fund themselves requires the separate cash-flow and financing disclosures.
Core’s $1,178 million consolidated net income and TeraWulf’s $710 million add up to approximately $1.89 billion.
In Core's filing, the $1,034 million revaluation gain comprised $964 million on legacy Tranche 1 and Tranche 2 warrants, $69 million on the liability portion of an AMD warrant and $1 million on contingent value rights. Legacy instruments supplied the largest component of Core's gain.
Warrants give holders rights to buy shares. Core's AMD warrant accompanied July customer leases, with its issuance value recorded as an incentive reducing future lease revenue. Its liability portion is remeasured through earnings. Core attributed changes in its broader warrant and contingent-value line primarily to stock-price changes.
TeraWulf's $728 million gain came from revaluing Google warrants issued in exchange for credit support covering certain Fluidstack lease obligations.
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