Core Scientific plans to shut down Bitcoin mining despite Q3 revenue hitting $233M

Core Scientific, as soon as the most important Bitcoin [BTC] miner, has launched its Q3 2026 report, however on the identical time it has additionally introduced its plans to fully exit Bitcoin mining by the tip of 2026.

Throughout its Q3 2026 earnings name, Chief Monetary Officer Jim Nygaard mentioned the corporate expects to finish the mining wind-down within the fourth quarter and enter 2027 as a high-density colocation supplier.

This choice got here because the agency’s Q3 outcomes had been primarily pushed by the enlargement of its high-density colocation (HDC) enterprise, which helps AI and high-performance computing (HPC) workloads.

Core Scientific’s AI shift

Remarking on the same, CEO Adam Sullivan mentioned,

We’re nearing full supply below our first colocation settlement whereas building below our second is underway throughout 5 campuses.

In line with the reviews, the corporate’s colocation income surged practically 60% quarter-over-quarter to $215.4 million, in comparison with $136.7 million in Q2 2026 and $15 million in Q3 2025.

Actually, its complete income additionally elevated to $232.9 million, up from $164.2 million within the earlier quarter and $81.1 million a yr earlier.

As of the thirtieth of September, Core Scientific was billing for 485 megawatts (MW) of capability, up from 395 MW within the earlier quarter, representing greater than $700 million in common annualized colocation income.

Core Scientific’s Q3 2026 outcomes

That mentioned, the corporate additionally reported internet revenue of $1.178 billion, in comparison with a internet lack of $1.15 billion in Q2 2026 and $144 million in Q3 2025.

In the meantime, adjusted EBITDA greater than tripled quarter-over-quarter to $133.6 million, with its margin increasing to 57% from 25% within the earlier quarter. Core Scientific’s gross revenue additionally climbed to $123.3 million, in comparison with $70 million in Q2.

Nonetheless, on the mining facet, self-mining income declined to $12.3 million from $21.5 million within the earlier quarter, whereas hosted mining income stood at $5.17 million. On the identical time, income from internet hosting tools for different Bitcoin miners additionally declined to $5.2 million from $8.7 million.

The way it all started?

For these unaware, Core Scientific started its AI infrastructure transition in 2024 by way of internet hosting agreements with CoreWeave, masking 590 MW of capability, of which 485 MW was billable by September 2026. Nonetheless, the transition additionally comes with challenges.

Core Scientific recorded $266.5 million in mining-related asset impairments in Q1 2026 amid weaker Bitcoin costs, low mining profitability, and declining tools values. It additionally recorded a $41.9 million loss after terminating mining tools agreements with Block and Proto in Q2.

That mentioned, Core Scientific will not be the one one, as, in keeping with AMBCrypto’s latest report, Bitcoin miners are more and more promoting BTC to fund operations whereas shifting their infrastructure in the direction of AI and HPC.

Miner’s November efficiency evaluation

This comes as miners swung from an enormous influx spike of about +7K BTC  in early 2026 to an outflow of about -5.7K BTC in early November, whereas the value slid from round $95K to $75.5K.

Nonetheless, the newest netflow has settled again to a small constructive studying of about 179.4 BTC, which suggests the miner promoting strain has cooled.

Closing Abstract

• Q3 outcomes had been primarily pushed by the enlargement of its high-density colocation (HDC) enterprise.
• Core Scientific started its AI infrastructure transition in 2024 by way of internet hosting agreements with CoreWeave.