Key Notes
- Core Scientific expects to complete its Bitcoin mining exit in Q4 and enter 2027 focused on high-density colocation.
- Colocation generated $215.4 million of Q3 revenue, while most of the $1.18 billion net profit came from a noncash warrant gain.
- The company held 32 BTC at September 30 after selling 3,374 BTC for $286.8 million over the first nine months.
Core Scientific plans to leave Bitcoin mining by the end of 2026 and enter next year focused entirely on high-density data centers for artificial intelligence and other demanding computing workloads.
“We expect to complete our exit from Bitcoin mining by year-end,” CEO Adam Sullivan told investors during the company’s November 5 earnings call. CFO Jim Nygaard said the remaining wind-down should finish in the fourth quarter, leaving the business as a dedicated colocation provider in 2027.
Mining Gives Way to Colocation
The shift is already visible in Core Scientific’s quarterly results. Revenue reached $232.9 million in the three months ended September 30, up about 187% from a year earlier. Colocation contributed $215.4 million, or roughly 92.5% of the total.
That business supplies the buildings, power, cooling and operating infrastructure in which customers run their computing equipment. It generated nearly 60% more revenue than in the second quarter. Self-mining brought in $12.3 million, while hosting other miners contributed $5.2 million.
The company’s regulatory filing says it was still operating its own mining fleet at two facilities and serving one remaining mining-hosting customer. Hosted mining is expected to end by December 31. Core Scientific is no longer buying equipment to sustain or expand its mining hashrate and is selling or otherwise monetizing machines as they are retired.
Bitcoin Holdings Fall to 32 BTC
Core Scientific held 32 BTC on September 30, compared with 2,537 BTC at the end of 2025. During the first nine months of 2026, it mined approximately 869 BTC and sold 3,374 BTC for $286.8 million.
Those sales funded planned capital expenditure and other cash requirements. The nine-month sales figure includes newly mined Bitcoin as well as previously held reserves; it is not simply the difference between the two balance-sheet snapshots.
Warrant Gain Drives Billion-Dollar Profit
Adjusted EBITDA, a non-GAAP measure, reached $133.6 million, with a margin of 57%, compared with 25% in the preceding quarter.
Net income was much larger at $1.18 billion, principally because of a roughly $1.03 billion noncash gain from revaluing warrants and contingent value rights. That accounting gain does not represent revenue from AI customers or cash received from selling Bitcoin. Quarterly operating income was $72.4 million.
AI Expansion Still Requires Financing
Core Scientific was billing CoreWeave for 485 megawatts at September’s end. Sullivan said the company had about 1.1 gigawatts contracted across CoreWeave and its AMD program, with initial AMD capacity expected to begin delivery in the first half of 2027.
Management said its required equity contribution to the initial 530-megawatt AMD build-out had already been invested. Securing the remaining project financing is still a priority, with project bonds the expected route.
The plan extends the Pecos expansion CoinScreamer covered in April. It also follows the broader shift of mining infrastructure toward AI, including SWI’s financing for a strategy involving Genesis Digital Assets. For Core Scientific, the next milestones are completing the mining exit and delivering contracted data-center capacity.
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