Core Scientific to End Bitcoin Mining by Year-End 2026, Shifts Fully to AI and HPC Hosting

Core Scientific disclosed on its Q3 earnings call that it intends to exit Bitcoin mining entirely by the fourth quarter of 2026, converting the business into a pure‑play high‑density colocation provider for artificial‑intelligence (AI) and high‑performance computing (HPC) workloads. The shift marks a decisive pivot from its original focus on cryptocurrency mining to data‑center services, a move the company attributes to weakening mining economics and growing demand for AI infrastructure.

Mining Revenue Shrinks Sharply

According to Cointelegraph, self‑mining revenue fell to $12.3 million in the third quarter, down from $57.4 million a year earlier, while hosted‑miner revenue dropped to $5.2 million from $8.7 million. Overall, Bitcoin mining contributed just $17.5 million, or 7.5%, of Core Scientific’s $232.9 million quarterly revenue, compared with $215.4 million generated by colocation services. The company also reported that it had nearly 50 % fewer miners online at the end of September than at the close of 2025, underscoring the rapid contraction of its mining fleet.

AI and HPC Hosting Gains Momentum

Core Scientific’s transition to AI hosting began in 2024 with an initial agreement with CoreWeave in March, followed by a larger deal in June of the same year. Those contracts signaled an expansion strategy that ran alongside mining, but the firm now frames AI and HPC colocation as its core business. In Q3, colocation services accounted for roughly 92 % of total revenue, reflecting the company’s successful reallocation of capital and data‑center capacity toward high‑density compute workloads.

Financial Impacts and Asset Write‑downs

The company recorded $266.5 million in mining‑related asset impairments in Q1 2026, citing a prolonged dip in Bitcoin prices, historically low hashprice, and a slump in secondary‑market values for mining equipment. A further $41.9 million loss was booked in Q2 after terminating a mining‑equipment agreement with Block and Proto, reinforcing the financial pressure to abandon mining operations.

What to Watch Next

Analysts will monitor how Core Scientific’s AI‑focused strategy performs amid growing regulatory scrutiny of large data‑center projects, especially after the recent U.S. midterm elections that heightened political attention on electricity consumption and local resource impacts. Additionally, the timeline for fully decommissioning the remaining mining hardware and the potential resale or repurposing of that equipment will be key indicators of the company’s execution risk.