Core Scientific plans to fully exit Bitcoin mining by the end of 2026, shifting its focus to artificial intelligence and high-performance computing infrastructure. During a Q3 earnings call on Thursday, Chief Financial Officer Jim Nygaard stated, "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 previously announced in a July filing that hosted mining would end by December 31, 2026, as it continued to scale back its self-mining operations.
The company's latest quarterly results highlight its business transition. Third-quarter self-mining revenue dropped to $12.3 million from $57.4 million a year earlier, while revenue from hosting other miners fell to $5.2 million from $8.7 million. Overall, Bitcoin mining contributed just $17.5 million, or 7.5%, of Core Scientific’s $232.9 million in third-quarter revenue, compared to $215.4 million from colocation services. By the end of September, the company had nearly 50% fewer miners online than at the end of 2025.
Core Scientific's pivot to AI hosting began in 2024 after signing an initial agreement with CoreWeave in March, followed by a larger deal in June. Initially, the company presented AI hosting as an expansion alongside its mining business. However, by December 2025, The Wall Street Journal reported that Core Scientific was targeting to wind down its Bitcoin mining operations by 2028. The company faced additional pressure from mining economics, recording $266.5 million in mining-related asset impairments in the first quarter of 2026 due to weaker Bitcoin prices and falling equipment values.
The planned exit comes amid fresh uncertainty for companies expanding AI infrastructure following the US midterm election results. Opponents of data-center development, who won in the Democrats’ sweeping midterm gains, have raised concerns about electricity bills and the demands large facilities place on local resources.