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Core Scientific to quit Bitcoin mining by year-end as AI business surges
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Core Scientific will exit Bitcoin mining by the end of 2026, targeting a fourth-quarter wind-down, CFO Jim Nygaard said on Thursday's Q3 earnings call. It expects to enter 2027 as a pure-play high-density colocation provider. The move completes its pivot to AI infrastructure.
The AI hosting shift began in 2024 with an initial CoreWeave agreement in March and a larger deal in June. At the time, Core Scientific framed AI hosting as an expansion alongside mining, emphasizing preserved Bitcoin mining capacity. By December 2025, the Wall Street Journal reported a 2028 wind-down target.
Q3 self-mining revenue fell to $12.3 million from $57.4 million a year earlier, while hosting other miners dropped to $5.2 million from $8.7 million. Bitcoin mining generated just $17.5 million, or 7.5%, of $232.9 million in quarterly revenue. Colocation services brought in $215.4 million. Nearly 50% fewer miners were online at September's end than at end-2025.
Mining economics added pressure. Core Scientific recorded $266.5 million in mining-related asset impairments in Q1 2026, citing weaker Bitcoin prices, historically low hashprice, and falling equipment values. In Q2, it terminated its mining equipment agreement with Block and Proto, recording a $41.9 million loss.
The planned exit comes as US midterms introduce fresh uncertainty for AI infrastructure expansion. Opponents of data-center development were among the winners of Democrats' sweeping midterm gains, Reuters reported Wednesday. The backlash centers partly on electricity bills and demands large facilities place on local resources.
Core Scientific expects to complete the wind-down in Q4 and enter 2027 as a pure-play colocation provider. It had previously disclosed in July that hosted mining would end by Dec. 31. Cointelegraph reached out to Core Scientific for comment.
