Rendering: Core Scientific
Core Scientific plans to leave Bitcoin mining by year-end and focus on data-center space for AI and high-performance computing, shifting a former major miner’s business toward customers such as CoreWeave and AMD.
Chief Financial Officer Jim Nygaard said on the company’s Thursday earnings call that it expects to finish winding down mining in the fourth quarter and begin 2027 as a provider of high-density colocation, meaning it rents out power and data-center space to customers. The exit is a target, not a finished move. The call transcript shows the company had nearly 50% fewer miners online at the end of September than at the end of 2025.
Colocation now makes up most of the revenue
The company’s results release shows third-quarter revenue of $232.9 million, up from $164.2 million in the second quarter and $81.1 million a year earlier. Colocation brought in $215.4 million of that. Mining the company does for itself brought in $12.3 million, and mining it hosts for others brought in $5.2 million.
The company said it was billing for 485 megawatts of capacity at the end of September. Core Scientific said it is converting its remaining mining sites to serve colocation customers.
The big profit number comes from an accounting gain
Net income was $1.178 billion, but the company said it was mainly driven by a noncash gain from a change in the value of its warrants, which move with its stock price. It is not cash earned from running the business. Adjusted EBITDA, a measure that leaves out some costs and accounting effects, was $133.6 million, up from $41.1 million in the second quarter.
What could slow the plan
Management said further growth depends on delivering more capacity for CoreWeave and AMD and on raising money to build it. Nygaard said the company is working on project bonds and other debt. The company’s stock fell 10.82% to $11.38 in Thursday’s regular session, a day when the broader market also fell, so the drop cannot be tied to the mining plan alone.
In plain words: Core Scientific is planning to stop mining Bitcoin and rent out data-center space instead. Most of its revenue already comes from that, but its plans rely on finishing new buildings and raising money to pay for them.
JBizNews Desk | Miami
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