In this article5 sections
Core Scientific expects to finish winding down Bitcoin mining during the fourth quarter of 2026 and begin 2027 as a high-density colocation provider, chief financial officer Jim Nygaard said on the company’s Q3 earnings call, according to Cointelegraph. The company reported $232.9 million in third-quarter revenue, of which mining and mining hosting contributed $17.5 million, or 7.5%.
Colocation accounted for the remaining $215.4 million. The figures show how far the business has moved from its mining origins, and they landed a day after the company published its third-quarter results. Blockchain Reporter calculated that colocation made up 92.5% of revenue, against 18.5% a year earlier, when the same business reported $81.1 million in total revenue and $15.0 million from colocation.
Also read: Bitcoin Mining Difficulty Rises 5.92% to 140.58T
Key facts
- Third-quarter self-mining revenue fell to $12.3 million from $57.4 million a year earlier, while hosting revenue for other miners dropped to $5.2 million from $8.7 million.
- Core Scientific had nearly 50% fewer miners online at the end of September than at the end of 2025, Nygaard said.
- The company recorded $266.5 million in mining-related asset impairments in the first quarter of 2026, citing weaker Bitcoin prices and low hashprice, and took a $41.9 million loss in the second quarter when it terminated its mining equipment agreement with Block and Proto.
- Blockchain Reporter reported that net income was $1,178.1 million, driven primarily by the change in fair value of warrants, and that $985.1 million went to property, plant, equipment, land and development rights in the quarter.
- Coinpedia reported that MARA Holdings, Riot Platforms and HIVE Digital have also shifted toward AI and HPC infrastructure, and that at least 35 EH/s of computing power is scheduled to leave publicly listed Bitcoin miners.
A revenue mix that flipped in two quarters
Publishing its third-quarter 2026 results, Core Scientific said it is “in the process of repurposing its remaining mining facilities to support its high-density colocation services business as circumstances allow.” Blockchain Reporter noted that the release does not use the word “exit” and that the phrasing ties timing to construction schedules rather than a public shutdown date, while Cointelegraph reported the July filing had already put hosted mining’s end at December 31.
Capacity has moved steadily. Blockchain Reporter reported billing capacity of 120 megawatts in the fourth quarter of 2025, then 225 MW, 395 MW and 485 MW in the third quarter of 2026, with colocation revenue of $31.3 million, $77.5 million, $136.7 million and $215.4 million across the same quarters. Chief executive Adam Sullivan said in the release that the company is nearing full delivery under its first colocation agreement while construction under its second is underway across five campuses.
Two tenants, more than $24 billion contracted
Blockchain Reporter reported that contracted revenue exceeds $24 billion across about 1.1 gigawatts of customer-contracted power, split between roughly 590 MW leased to CoreWeave — across Denton, Texas; Dalton, Georgia; Muskogee, Oklahoma; Marble, North Carolina; and Austin, Texas — and an AMD-backed block of about 530 MW. Of the CoreWeave capacity, 485 MW was billing on November 5, with the remaining 105 MW at Dalton scheduled to complete early in 2027.
Coinpedia reported an additional AMD reservation for 1,925 MW of potential capacity, a figure Blockchain Reporter’s summary of the deck does not state. Coinpedia also reported a separate 20-year Riot Platforms lease for 191 MW with an estimated $9.1 billion in contract revenue, which Blockchain Reporter described as the largest version of the trade announced this year.
Why it matters
For a public miner, the same power capacity now supports a different product: long-dated rental of space, power and cooling to AI tenants. Coinpedia cited an energy infrastructure analyst’s estimate that one megawatt of power can generate roughly $1.9 million over five years from Bitcoin mining against about $7.9 million from AI workloads, which helps explain why miners with grid connections are finding buyers for capacity rather than hashpower. Coin Scientific’s shift also changes what investors own — a colocation landlord whose reported earnings can swing with its warrant liabilities, not a company whose results track the price of Bitcoin.
The planned exit coincides with new political uncertainty. Cointelegraph reported that opponents of data-center development were among the winners in the Democrats’ midterm gains, with the backlash centering partly on electricity bills and the demands large facilities place on local resources.
What to watch
The fourth-quarter filing and the early-2027 completion of the remaining 105 MW at Dalton will show whether the company states a dated mining shutdown on the record. Core Scientific’s current disclosure describes an ongoing conversion, not a completed one.
This article is for information only and is not financial advice; markets for crypto assets and related equities are volatile and uncertain.
Reported by Cointelegraph.
Sources: Cointelegraph, Blockchain Reporter, Coinpedia