Core Scientific to Exit Bitcoin Mining by Year-End, Focus Shifts to High‑Density Colocation

Core Scientific (ticker CORZ) announced on its third‑quarter earnings call that it will wind down all Bitcoin mining activities by the fourth quarter of 2026 and emerge in 2027 as a pure‑play high‑density colocation provider, according to the company’s CFO Jim Nygaard and CEO Adam Sullivan.

Colocation Revenue Drives Growth

The firm’s Q3 earnings release shows colocation revenue rose nearly 60% sequentially to $215.4 million, lifting total revenue to $232.9 million and pushing the colocation share of sales to roughly 92%. Adjusted EBITDA more than tripled to $133.6 million, with a margin of 57%, up from 25% a year earlier.

Mining Business Shrinks Sharply

Self‑mining revenue dropped to $12.3 million, down about 79% from $57.4 million a year earlier, and the segment posted a $7.5 million gross loss for the quarter. The company now has about 50% fewer miners online than at the end of 2025, reflecting a deliberate repurposing of power and floor space for AI and high‑performance computing workloads.

Future Capacity and Financial Outlook

Core Scientific is billing for 485 MW of colocation capacity, up 90 MW from the prior quarter, and expects to add another 100 MW from its CoreWeave build‑out soon. Combined with an AMD‑backed agreement covering 530 MW, the firm targets roughly 1.1 GW of capacity that could generate $1.8 billion in annual run‑rate revenue and $1.6 billion in net operating income once fully delivered. Liquidity stood at about $1.7 billion at quarter‑end, including $800 million in cash.

What to Watch Next

Investors will be looking for confirmation that Core Scientific shuts down its remaining miners on schedule in Q4, that the AMD financing package closes as planned, and for early revenue signals from the newly commissioned AI and HPC workloads.