Core Scientific said it plans to wind down its Bitcoin mining business by December 2026 and begin 2027 as a dedicated high-density colocation provider serving artificial intelligence and high-performance computing workloads.
The strategy marks a major reallocation of the company’s power and data-center capacity away from self-mining and toward infrastructure customers. In the latest quarter, that shift showed up in both the size of its mining fleet and the mix of its revenue.
Mining phaseout set on a defined timeline
The company’s target is to complete its exit from Bitcoin mining by the end of 2026. Its stated goal is to enter 2027 focused entirely on high-density colocation for AI and HPC customers.
That transition is already underway. By the end of September, Core Scientific had nearly 50% fewer miners online than it had at the end of 2025, reflecting its effort to redirect capacity toward contracted infrastructure demand.
Colocation becomes the main growth engine
Core Scientific reported colocation revenue of $215.4 million in the third quarter, up 58% from the previous quarter. Total revenue reached $232.9 million, a 42% quarter-on-quarter increase.
The company also said it was billing for 485 megawatts of colocation capacity by the end of September, after adding 90 MW during the quarter. It said that level of billed capacity represents more than $700 million in average annualized GAAP colocation revenue.
Roughly 100 MW tied to its CoreWeave buildout is still being commissioned. Revenue from that portion is expected to begin showing up in the coming months, according to the company.
Profit metrics improved, but net income was heavily affected by accounting gains
Adjusted EBITDA rose to $133.6 million in the quarter from $41.1 million in the prior period. The adjusted EBITDA margin increased to 57% from 25%, which the company tied to stronger operating performance as additional capacity came online.
Reported net income was $1.18 billion, but the result was largely driven by non-cash gains related to changes in the fair value of warrants. That means the headline profit figure did not reflect the company’s underlying operating performance in the same way as its revenue and adjusted EBITDA measures.
Part of a wider infrastructure shift among miners
Core Scientific’s repositioning comes as other Bitcoin miners also push infrastructure toward AI-related workloads. The source article notes that Riot is developing large-scale AI data centers, while MARA is diversifying into AI infrastructure alongside its mining business.
For Core Scientific, the next confirmed step is the completion of the remaining CoreWeave commissioning and the continued reduction of its mining fleet ahead of the planned December 2026 shutdown. Whether the company reaches 2027 as a pure AI and HPC colocation provider will depend on executing that conversion on schedule.
Source: cryptopotato.com