Core Scientific says it will be out of bitcoin mining by the end of 2026 as AI data center leasing reaches 92 percent of its revenue

Core Scientific is leaving bitcoin mining. On its third-quarter earnings call, finance chief Jim Nygaard said the company expects to "enter 2027 as a pure-play, high-density colocation provider," Cointelegraph reports, and chief executive Adam Sullivan told analysts the exit from mining would be complete by year-end, according to TFTC.

The numbers show how far the switch has gone. Revenue rose to $232.9 million in the quarter to September 30 from $164.2 million in the previous quarter, according to the company's results filing. Colocation revenue grew nearly 60% from the prior quarter to $215.4 million, while self-mining revenue fell to $12.3 million from $21.5 million and ran at a gross loss of $7.5 million. Hosting machines for other miners brought in $5.2 million. Net income was $1.2 billion, mostly from a non-cash gain on the value of its warrants and contingent value rights.

The company says it is repurposing its remaining mining sites for colocation, where it was billing for 485 megawatts at the end of September. CoreWeave, one of its colocation customers, first signed a hosting agreement with it in March 2024.