Core Scientific To Exit Bitcoin Mining By Year-end

• Core Scientific plans to completely exit Bitcoin mining by December 2026 and focus on AI and high-performance computing.
• Bitcoin mining contributed just 7.5% of its third-quarter revenue, while colocation services generated most of its income.
• The company has faced falling mining revenue and asset losses as it shifts towards AI infrastructure.

Core Scientific Prepares To End Bitcoin Mining

Core Scientific is set to stop Bitcoin mining by the end of 2026 as it moves into the Artificial Intelligence (AI) and high-performance computing space. It is expected to finish the process in Q4 and be a pure play data centre and colocation provider going into 2027.

Chief Financial Officer Jim Nygaard confirmed during the third quarter earnings call on Thursday that the company will end its Bitcoin mining operations.

Core Scientific, Once the Largest Bitcoin Miner, Plans to Fully Shut Down Bitcoin Mining by Q4 2026

Core Scientific, once the world’s largest Bitcoin mining company, announced during its Q3 earnings call that it is accelerating the phase-out of its proprietary Bitcoin mining operations. The number of active miners on its network has dropped by nearly 50% compared to the end of 2025, with plans to completely shut down its mining business in Q4 2026 and operate purely as a high-performance computing (HPC) colocation provider starting in 2027. In Q3, the company’s colocation revenue reached $215 million (up nearly 60% quarter-over-quarter), and its EBITDA margin expanded to 57%.

— Wu Blockchain (@WuBlockchain) November 5, 2026

Its latest results show how much the company is pivoting away from Bitcoin mining. Just $17.5 million, or 7.5% of overall revenue of $232.9 million, came from mining Bitcoin in the quarter, compared to $215.4 million from colocation services.

Bitcoin Mining Shrinking

The company’s Bitcoin mining operations have shrunk considerably over the past year, with revenue from its own mining operations falling to $12.3 million in Q3 from $57.4 million in the same period last year. Revenue from hosting other companies’ mining operations fell to $5.2 million from $8.7 million.

Miners are also down almost 50% at the end of September compared to the end of 2025. The company already highlighted in a July filing that it will end hosted mining by December 31, 2026. But now it is clear they want to fully wind down their own operations.

Pivoting Into AI

The company started moving into AI infrastructure back in 2024 after signing hosting contracts with CoreWeave. Originally it planned to grow its AI hosting business while continuing with Bitcoin mining but its strategy has evolved.

The company also faced pressure from its mining operations. In Q1 2026 it took impairments of $266.5 million on its mining assets due to lower Bitcoin prices, poor profitability of mining and lower equipment values. It also ended its mining equipment contract with Block and Proto during Q2, taking a hit of $41.9 million.

But moving into AI infrastructure does poses some challenges. With increasing opposition to building new data centres in the US, concerns around high electricity bills and strain on local resources from large facilities.

Overall Core Scientific’s actions reflect a broader trend from Bitcoin miners who are increasingly seeing AI and high performance computing as alternative revenue streams.

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