Core Scientific to exit Bitcoin mining by end of 2026 as AI colocation takes over
In brief
- Core Scientific expects to exit Bitcoin mining by the end of 2026, CFO Jim Nygaard said.
- Mining revenue totaled $17.5 million, or 7.5% of $232.9 million in Q3 revenue.
- Colocation services generated $215.4 million in the third quarter.
- Online miner count was nearly 50% lower at end-September than at end-2025.
Mining is now a small slice of revenue
Bitcoin mining generated $17.5 million, or 7.5%, of Core Scientific's $232.9 million in third-quarter revenue, according to the company's Q3 results as reported by Cointelegraph.
Colocation services brought in $215.4 million over the same period.
Inside the mining line, the declines were steep. Self-mining revenue fell to $12.3 million from $57.4 million a year earlier, while revenue from hosting other miners dropped to $5.2 million from $8.7 million. The fleet's shrinking too (Nygaard said the company had nearly 50% fewer miners online at the end of September than at the end of 2025). The hosting cutoff had already been flagged: Core Scientific disclosed in a July quarterly filing that hosted mining would end by Dec. 31.
“We expect to complete the wind-down during the fourth quarter and enter 2027 as a pure-play, high-density colocation provider,” said Core Scientific chief financial officer Jim Nygaard
From "alongside" to "instead of"
That's a sharp turn from where the company stood two years ago. Core Scientific's move into AI hosting began in 2024 with an initial hosting agreement with CoreWeave in March, followed by a larger deal announced in June. At the time, it presented AI hosting as an expansion alongside mining, and the June 2024 announcement emphasized preserving Bitcoin mining capacity.
The schedule has also moved up. The Wall Street Journal reported in December 2025 that Core Scientific was targeting a wind-down of its mining operations by 2028; the company now expects to wrap up by the end of 2026.
Getting here hasn't been cheap. Core Scientific recorded $266.5 million in mining-related asset impairments in Q1 2026, citing weaker Bitcoin prices, low hashprice and falling mining equipment values. In the second quarter, it terminated its mining equipment agreement with Block and Proto and booked a $41.9 million loss.
Data centers face their own pushback
The new business isn't free of friction. Reuters reported that opponents of data-center development were among the winners of Democrats' midterm gains, with the backlash centered partly on electricity bills and the demands large facilities place on local resources.
Cointelegraph said it reached out to Core Scientific for comment.
Frequently asked questions
When will Core Scientific stop mining Bitcoin?
Core Scientific said it expects to exit Bitcoin mining by the end of 2026. CFO Jim Nygaard said on the Q3 earnings call that the company expects to complete the wind-down in the fourth quarter and enter 2027 as a pure-play, high-density colocation provider.
How much of Core Scientific's revenue still comes from Bitcoin mining?
Bitcoin mining generated $17.5 million, or 7.5%, of Core Scientific's $232.9 million in third-quarter revenue. Colocation services generated $215.4 million in the same quarter, according to figures reported by Cointelegraph.
