Core Scientific is abandoning Bitcoin mining by year-end 2026, shifting its entire business model to high-density AI data centers as mining economics deteriorate and colocation demand drives growth.
On the Q3 earnings call (Nov. 5) Core Scientific set a definitive exit from Bitcoin mining in Q4 2026, becoming a pure-play AI colocation provider in 2027. Mining fell to just 7.5% of Q3 revenue ($17.5M of $232.9M) with colocation at $215.4M, cementing the higher-margin AI pivot. Risk: US midterm gains for data-center opponents add regulatory and power-cost uncertainty.
The company expects to complete the wind-down during the fourth quarter of 2026 and enter 2027 as a pure-play high-density colocation provider.
Bitcoin mining generated $17.5 million, or 7.5%, of the $232.9 million in third-quarter revenue, compared with $215.4 million from colocation services.
A major public miner exiting self-mining entirely, after $266.5M in mining impairments tied to weaker Bitcoin prices and historically low hashprice, underscores deteriorating mining economics. However, this confirms an already-disclosed wind-down and the direct effect on Bitcoin's price is limited.
Core Scientific confirmed it will cease all Bitcoin mining operations by the end of 2026 to transition into a pure-play AI and high-performance computing colocation provider. The pivot follows a sharp decline in mining revenue, which accounted for only 7.5% of the company's $232.9 million in third-quarter revenue, while colocation services surged to $215.4 million.
The company expects to complete the wind-down of its mining operations during the fourth quarter of 2026 and enter 2027 as a pure-play high-density colocation provider.
Bitcoin mining generated $17.5 million, or 7.5%, of the $232.9 million in third-quarter revenue, while colocation services accounted for $215.4 million.