Core Scientific to Exit Bitcoin Mining Entirely by End of 2026

Core Scientific plans to shut down its Bitcoin self-mining operations by December 31, 2026 and operate solely as a colocation provider for AI and high-performance computing from 2027, according to its third-quarter 2026 earnings report released on November 5, 2026. Hosted mining for third parties is winding down on the same timeline. The Nasdaq-listed company, once one of the largest Bitcoin miners in North America, will carry no mining revenue at all once the deadline passes.

What do the Q3 numbers show?

The strategic shift is already visible in the segment results. Colocation revenue reached $215.4 million in Q3 2026, up nearly 60% from the prior quarter, and the segment runs at a 57% adjusted EBITDA margin. Self-mining revenue fell to $12.3 million, a 79% drop year over year, and the mining operation posted a gross loss for the quarter. Core Scientific has cut its mining fleet by nearly 50% since the end of 2025, reallocating power and floor space to long-term customer contracts. As of September 30, 2026, the company reported 485 MW of billing capacity, a level management says supports more than $700 million in annualized colocation revenue.

Who is renting the capacity?

Two contracts anchor the pivot:

• A long-term agreement with CoreWeave covering approximately 590 MW.
• An agreement with AMD for an initial capacity of more than 500 MW, scalable to 2.5 GW or more.

Management expects every megawatt of existing capacity to convert to colocation within three years. The exit has a price: Core Scientific terminated its Block/Proto mining chip supply agreement in 2026 and booked a $41.9 million loss on the decision.

Why abandon mining altogether?

The move caps a rapid transformation. Core Scientific emerged from Chapter 11 bankruptcy in January 2024 with a mandate to build steadier revenue. Bitcoin mining income swings with the bitcoin price, network difficulty and halving cycles, while multi-year colocation contracts pay on a fixed schedule. The company's mining sites turned out to be well suited to the new business: they already have large power connections, cooling infrastructure and land permitted for industrial use — exactly what AI compute tenants need.

What changes for investors?

The investment case has fundamentally changed. The stock is no longer a leveraged bet on bitcoin's price; it is now a bet on AI infrastructure demand and on delivering capacity to a small number of very large tenants. That concentration cuts both ways, with CoreWeave and AMD representing large slices of the contracted pipeline. Scaling from 485 MW of billing capacity toward the multi-gigawatt potential of the AMD deal will require sustained construction and power procurement, and investors will be watching whether the company brings new capacity online on schedule and meets contractual obligations.

With mining revenue heading to zero after December 31, 2026, colocation now carries the entire company.