Core Scientific mentioned it expects to exit Bitcoin mining by the tip of 2026 because it shifts its enterprise towards synthetic intelligence and high-performance computing infrastructure.
“We expect to complete the wind-down during the fourth quarter and enter 2027 as a pure-play, high-density colocation provider,” mentioned Core Scientific chief monetary officer Jim Nygaard throughout a Q3 earnings name on Thursday.
Core Scientific had beforehand disclosed in a July quarterly submitting that hosted mining would finish by Dec. 31 because it continued to wind down its self-mining operations. The remark establishes a focused completion date for its full Bitcoin mining exit.
Its newest quarterly outcomes present how far the enterprise has shifted. Third-quarter self-mining income fell to $12.3 million from $57.4 million a 12 months earlier, whereas income from internet hosting different miners dropped to $5.2 million from $8.7 million.
Bitcoin mining generated simply $17.5 million, or 7.5%, of Core Scientific’s $232.9 million in third-quarter income, in contrast with $215.4 million from colocation companies.
The firm had practically 50% fewer miners on-line on the finish of September than on the finish of 2025, based on Nygaard.
Core Scientific pivot to AI
Core Scientific’s transfer into AI internet hosting took form in 2024 after signing an preliminary internet hosting settlement with CoreWeave in March that 12 months, adopted by a a lot bigger deal introduced in June.
At the time, Core Scientific introduced AI internet hosting as an enlargement alongside its mining enterprise. Its June 2024 announcement emphasised preserving Bitcoin mining capability.
By December 2025, The Wall Street Journal reported that Core Scientific was already concentrating on to wind down its Bitcoin mining operations by 2028.
Related: American Bitcoin’s $126M revenue masks mining stress as rivals flip to AI
Mining economics added stress within the months following.
Core Scientific recorded $266.5 million in mining-related asset impairments within the first quarter of 2026, citing weaker Bitcoin costs, traditionally low hashprice and falling digital asset mining tools values within the secondary market.
During the second quarter, it terminated its mining tools settlement with Block and Proto, recording a $41.9 million loss as a part of the transition.
US midterms carry scrutiny of data-center development
The deliberate exit comes because the US election outcomes introduce recent uncertainty for corporations increasing AI infrastructure.
Opponents of data-center growth had been among the many winners of the Democrats’ sweeping midterm features, Reuters reported Wednesday.
The backlash facilities partly on electrical energy payments and the calls for giant amenities place on native assets.
Cointelegraph reached out to Core Scientific for remark.
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Content Source: cointelegraph.com
