Core Scientific Plans Full Exit from Bitcoin Mining as AI Colocation Becomes Dominant

Core Scientific (NASDAQ: CORZ), the infrastructure company once known as one of North America’s largest publicly traded Bitcoin miners, is finalizing a complete departure from cryptocurrency mining. Management indicated on its November 5, 2026, third-quarter earnings call that the remaining self-mining operations will be wound down during the fourth quarter of 2026.

The firm expects to begin 2027 exclusively as a pure-play provider of high-density colocation services tailored for artificial intelligence and high-performance computing workloads.

This timeline clarifies and accelerates earlier disclosures.

A July 2026 quarterly filing had already set a December 31 deadline for ending hosted mining for third-party operators while the company progressively reduced its own fleet.

Chief Financial Officer Jim Nygaard stated the company anticipates completing the wind-down in the fourth quarter and entering the new year as a dedicated high-density colocation provider.

Chief Executive Officer Adam Sullivan similarly confirmed an expected full exit from Bitcoin mining by year-end.

The financial results for the quarter ended September 30, 2026, illustrate how far the transition has already progressed.

Total revenue reached $232.9 million, up sharply from the prior year.

Colocation services contributed $215.4 million, representing roughly 92.5 percent of the total and reflecting a nearly 60 percent sequential increase. In contrast, combined self-mining and hosted-mining revenue totaled just $17.5 million, or 7.5 percent of overall sales.

Self-mining revenue specifically declined to $12.3 million from $57.4 million in the same quarter a year earlier, while revenue from hosting other miners fell to $5.2 million from $8.7 million.

Operational metrics reinforce the shift.

By the end of September, Core Scientific was billing customers for 485 megawatts of colocation capacity, a figure the company said supports more than $700 million in average annualized GAAP colocation revenue.

Adjusted EBITDA more than tripled sequentially to $133.6 million, with the margin expanding to 57 percent from 25 percent in the prior quarter.

The company also reported operating nearly 50 percent fewer miners online at quarter-end than at the close of 2025, as power and floor space were reallocated under long-term customer agreements.

The AI-focused strategy traces back to 2024, when Core Scientific signed an initial hosting agreement with CoreWeave, followed by a larger deal later that year.

What began as an expansion alongside mining has evolved into the core business.

Current contracted capacity includes approximately 590 megawatts with CoreWeave and an additional 530 megawatts under an AMD-backed agreement spanning multiple campuses.

Together these arrangements total roughly 1.1 gigawatts and are projected to support about $1.8 billion in average annual run-rate revenue once fully delivered and billing.

Remaining CoreWeave capacity is largely in commissioning, with further deliveries under the AMD-related agreements targeted to begin in the first half of 2027 and complete by the end of 2028.

The pivot reflects broader industry economics.

Mining revenue has contracted amid softer Bitcoin prices, lower hashprice, and equipment impairments, while demand for power-dense AI infrastructure has surged.

Core Scientific has already incurred costs associated with the transition, including termination of certain mining equipment supply agreements.

By converting facilities and prioritizing contracted colocation, the company aims to replace volatile mining economics with longer-term, higher-margin infrastructure leases.

As the final mining machines are retired in the coming months, Core Scientific’s results will increasingly reflect the performance of its expanding high-density data center portfolio. The company continues to emphasize execution on its existing customer commitments while exploring additional opportunities in the AI infrastructure market.



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Disclosure Quest

Reg A - Form 1-A Filings Beta

Beta. Initial Form 1-A only. Target raise is the stated Amount to be Raised, totaled. Compared with the same dates one year earlier.

YTD: Jan 1, 2026 - Nov 6, 2026 vs Jan 1, 2025 - Nov 6, 2025

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Number of Filings134Prior 129 +3.9%
Target Raise, Total$3.45BPrior $3.59B -3.8%
This YTDYear priorChange
Filings 134 129 +3.9%
Target raise $3.45B $3.59B -3.8%

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Source: DisclosureQuest. Initial Form 1-A only.

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This display counts initial Form 1-A filings only. It does not represent subsequent filings, including Form 1-A/A amendments or Form 1-A POS post-qualification updates filed by the issuer. Amounts are the stated Amount to be Raised on the initial filing, not capital raised and not amounts revised in later filings.

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