The former Bitcoin mining titan expects to transition completely into a pure-play data center provider by 2027, as just 7.5% of quarterly revenue is now generated by its mining operations.
Core Scientific aims to phase out Bitcoin mining by late 2026, as its operations are shifted toward artificial intelligence and high-performance computing infrastructure.
“We expect to complete the wind-down during the fourth quarter and enter 2027 as a pure-play, high-density colocation provider,” said Core Scientific chief financial officer Jim Nygaard during a Q3 earnings call on Thursday.
In a July quarterly filing, Core Scientific revealed that hosted mining will be phased out by Dec. 31 alongside its shrinking self-mining unit. A definitive target date has now been set by this update for the company’s total departure from Bitcoin mining.
The company’s latest quarterly numbers reveal a massive shift in its business model. Self-mining revenue dropped sharply from $57.4 million a year ago down to $12.3 million in Q3, while a decline from $8.7 million to $5.2 million was seen in hosted mining revenue.
Bitcoin mining brought in a mere $17.5 million—roughly 7.5%—of Core Scientific’s total $232.9 million third-quarter revenue, whereas $215.4 million was generated by colocation services.
According to Nygaard, the company cut its active mining rig count almost in half by late September, with roughly 50% fewer operational units being recorded compared to the end of 2025.
Core Scientific Accelerates Its Strategic Move Into AI
Core Scientific’s pivot into AI hosting took root in 2024 following a March agreement with CoreWeave, which was soon expanded by a much larger deal announced in June.
Initially, Core Scientific framed its AI hosting initiative as a expansion next to its core mining operations. Emphasis was placed on preserving Bitcoin mining capacity in its June 2024 announcement.
By December 2025, The Wall Street Journal reported that Core Scientific was aiming to phase out its Bitcoin mining business by 2028, a timeline that was officially set in motion by company executives.
Tougher mining economics piled on extra pressure in the following months, with margins being squeezed significantly across the sector.
Core Scientific logged $266.5 million in mining asset write-downs during Q1 2026, citing weak Bitcoin prices, record-low hashprices, and lower values being recorded for secondhand mining gear.
In the second quarter, the company ended its mining hardware deal with Block and Proto, with a $41.9 million loss being recorded as a result of the transition.
US Midterm Elections Put Data Center Expansion Under Greater Scrutiny
This planned exit comes at a time when the recent US election results are introducing fresh uncertainty for firms building out AI infrastructure, where major operational shifts are now being watched closely across the sector.
Critics of data-center expansion emerged among the big winners in the Democrats’ broad midterm victories, as reported by Reuters on Wednesday.
Much of the backlash stems from soaring electricity bills and the heavy strain large facilities place on local utility grids, where concerns are increasingly being raised by local communities.
