Core Scientific to finish bitcoin mining exit in Q4 2026
The company said colocation brought in $215.4 million in the third quarter, about 92% of total revenue, as mining revenue fell 79% year over year.
Core Scientific plans to complete its exit from cryptocurrency mining within the fourth quarter of 2026, Chief Financial Officer Jim Nygaard said, with Chief Executive Officer Adam Sullivan stating the wind-down will be finished by the end of the year. The company's third-quarter results were reported by digitaltoday.co.kr.
Colocation now dominates the business. Colocation revenue reached $215.4 million in the third quarter, up about 60% quarter over quarter, and accounted for roughly 92% of total revenue of $232.9 million. Colocation posted gross profit of $128.4 million at a 60% gross margin.
Mining continued to shrink: cryptocurrency mining revenue fell about 79% year over year to $12.3 million from $57.4 million, mining hosting revenue from outside customers came to $5.2 million, and self-mining recorded a gross loss of $7.5 million. Active mining machines at the end of September were about 50% fewer than at the end of 2025.
Adjusted EBITDA was $133.6 million, more than triple the previous quarter, with margin rising from 25% to 57%. Billed colocation capacity stood at 485 megawatts as of September 30, up 90 MW during the quarter. Sullivan said about 100 MW of remaining CoreWeave build-out is in commissioning and should start generating revenue within days.
Two contracts totaling about 1.1 gigawatts
Beyond 590 MW contracted with CoreWeave, Core Scientific secured 530 MW across five campuses through an AMD-backed contract, with delivery to begin in the first half of 2027 and be completed by the end of 2028. Management projects annual revenue of $1.8 billion and net operating income of $1.6 billion once all facilities are running.
Digital asset holdings were $2.7 million as of September 30, down from $49.7 million three months earlier and $222 million at the end of 2025. Core Scientific had about $1.7 billion in liquidity at the end of the third quarter, including about $800 million in cash. Nygaard said financial statements excluding mining results will be presented from 2027.
Quick answers
When will Core Scientific stop bitcoin mining?
The company plans to complete the exit within the fourth quarter of 2026, by the end of the year.
How much colocation capacity does Core Scientific have contracted?
It has 590 MW contracted with CoreWeave plus 530 MW across five campuses under an AMD-backed contract, about 1.1 gigawatts in total.