Core Scientific to exit Bitcoin mining by end of 2026 as AI hosting grows
Core Scientific plans to finish its exit from Bitcoin mining this year
Core Scientific said it expects to leave Bitcoin mining by the end of 2026. The company plans to focus on artificial intelligence and high-performance computing infrastructure instead.
Bitcoin mining means using computers to help secure the Bitcoin network and earn new Bitcoin as a reward. Core Scientific said it expects to enter 2027 as a pure-play, high-density colocation provider. Colocation means renting space, power and cooling in data centres to other companies.
Key numbers from the third quarter
- Bitcoin mining brought in $17.5 million in the third quarter.
- That was 7.5% of the company’s $232.9 million in third-quarter revenue.
- Colocation services brought in $215.4 million.
- Self-mining revenue fell to $12.3 million from $57.4 million a year earlier.
- Revenue from hosting other miners fell to $5.2 million from $8.7 million.
- Core Scientific had nearly 50% fewer miners online at the end of September than at the end of 2025, according to Chief Financial Officer Jim Nygaard.
What Jim Nygaard said on the earnings call
Nygaard said: “We expect to complete the wind-down during the fourth quarter and enter 2027 as a pure-play, high-density colocation provider.”
The company had already said in a July quarterly filing that hosted mining would end by Dec. 31. It was also winding down its own mining operations.
How AI hosting became the main business
Core Scientific started its move into AI hosting in 2024. It signed an initial hosting agreement with CoreWeave in March that year. A larger deal followed in June.
At that time, the company presented AI hosting as an expansion alongside mining, and it said it would keep Bitcoin mining capacity. By December 2025, The Wall Street Journal reported that Core Scientific was targeting a mining wind-down by 2028. The latest statement brings that target forward to the end of 2026.
Costs that added pressure on mining
Core Scientific recorded $266.5 million in mining-related asset impairments in the first quarter of 2026. It cited weaker Bitcoin prices, historically low hashprice and falling values for mining equipment in the second-hand market. Hashprice is the amount miners can earn for their computing power.
In the second quarter, the company ended its mining equipment agreement with Block and Proto. It recorded a $41.9 million loss as part of that change.
Scrutiny of data-centre growth in the US
Reuters reported on Wednesday that opponents of data-centre development were among the winners after Democrats made sweeping gains in the US midterm elections. The report said the backlash is partly about electricity bills and the demands that large facilities place on local resources.
Cointelegraph said it contacted Core Scientific for comment. The supplied report does not include a response.
What happens next
Core Scientific expects to complete the mining wind-down in the fourth quarter of 2026. It said it plans to start 2027 as a pure-play, high-density colocation provider.
Where this report came from
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.