Core Scientific will full its exit from bitcoin mining by year-end and enter 2027 as a pure-play high-density colocation supplier, administration mentioned on Thursday’s third-quarter earnings name, capping a pivot that has already reduce the corporate’s mining fleet almost in half.
Chief Monetary Officer Jim Nygaard instructed buyers the corporate expects to “full the wind-down through the fourth quarter.” Chief Government Officer Adam Sullivan put the identical finish date extra bluntly: “We anticipate to finish our exit from Bitcoin mining by yr finish.” The feedback landed alongside a outcomes launch filed with the SEC that exhibits how far the shift has already gone.
Colocation income climbed almost 60% sequentially to $215.4 million within the quarter ended Sept. 30, the earnings exhibit exhibits. Digital asset self-mining income fell to $12.3 million, down about 79% from $57.4 million a yr earlier. Hosted mining for third events added simply $5.2 million. Of $232.9 million in complete income, colocation now accounts for roughly 92%.
Self-mining posted a $7.5 million gross loss within the quarter. Colocation gross revenue was $128.4 million, a 60% margin. Adjusted EBITDA greater than tripled sequentially to $133.6 million, with the margin increasing to 57% from 25%.
Mining shrinks as AI leases fill the ground
Nygaard mentioned Core Scientific had almost 50% fewer miners on-line on the finish of September than at year-end 2025. The corporate has been repurposing energy and flooring house beneath long-term buyer agreements for AI and high-performance computing workloads, a course of its investor supplies describe as persevering with “as circumstances enable.”
That path just isn’t distinctive amongst public miners. Friends have been promoting bitcoin and leasing campuses to AI tenants, and analysis notes have flagged a widening funding hole between these that may finance information middle builds and those who can’t.
Core Scientific is billing for 485 megawatts of colocation capability as of Sept. 30 — up 90 MW within the quarter — representing greater than $700 million in common annualized colocation GAAP income. The remaining roughly 100 MW beneath its CoreWeave buildout is in commissioning and anticipated to begin recognizing income over the following few months, Sullivan mentioned.
Past CoreWeave’s contracted 590 MW, Core Scientific has 530 MW beneath an AMD-backed settlement throughout 5 campuses, with preliminary supply focused for the primary half of 2027 and full supply by the top of 2028. Collectively, the 2 relationships cowl about 1.1 GW. As soon as totally delivered and billing, administration expects that portfolio alone to generate $1.8 billion in common annual run-rate income and $1.6 billion in internet working revenue.
What Core Scientific’s sheet exhibits
Bitcoin is sort of gone from the books. Digital belongings stood at $2.7 million on Sept. 30, down from $49.7 million three months earlier and $222 million at year-end 2025. Earlier this yr, Core Scientific was nonetheless including cash even because it bought into the pivot; that chapter is successfully closed.
The mining exit has already carried a money value. A $41.9 million loss on contract termination booked within the second quarter displays the choice to finish a Block/Proto mining chip provide settlement. Liquidity ended the third quarter at about $1.7 billion, together with roughly $800 million in money, after heavy capital spending on AMD websites and the Polaris acquisition.
Sullivan framed the wind-down as simplifying the enterprise towards “extra engaging long-term progress alternatives.” Nygaard added that beginning 2027 with a “very clear P&L” — one with out mining within the numbers — ought to give buyers a clearer have a look at a real colocation run-rate.
The check now could be whether or not Core Scientific turns the final machines off on schedule within the fourth quarter, and whether or not the AMD financing bundle lands in time to maintain that clear P&L rising.
