Core Scientific stated it expects to exit Bitcoin mining by the tip of 2026 because it shifts its enterprise towards synthetic intelligence and high-performance computing infrastructure.
“We count on to full the wind-down in the course of the fourth quarter and enter 2027 as a pure-play, high-density colocation supplier,” said Core Scientific chief monetary officer Jim Nygaard throughout a Q3 earnings name on Thursday.
Core Scientific had beforehand disclosed in a July quarterly submitting that hosted mining would finish by Dec. 31 because it continued to wind down its self-mining operations. The remark establishes a focused completion date for its full Bitcoin mining exit.
Its newest quarterly outcomes show how far the business has shifted. Third-quarter self-mining income fell to $12.3 million from $57.4 million a yr earlier, whereas income from internet hosting different miners dropped to $5.2 million from $8.7 million.
Bitcoin mining generated simply $17.5 million, or 7.5%, of Core Scientific’s $232.9 million in third-quarter income, in contrast with $215.4 million from colocation providers.
The corporate had almost 50% fewer miners on-line on the finish of September than on the finish of 2025, in accordance to Nygaard.
Core Scientific pivot to AI
Core Scientific’s transfer into AI internet hosting took form in 2024 after signing an initial hosting agreement with CoreWeave in March that yr, adopted by a a lot bigger deal introduced in June.
On the time, Core Scientific introduced AI internet hosting as an growth alongside its mining enterprise. Its June 2024 announcement emphasised preserving Bitcoin mining capacity.
By December 2025, The Wall Avenue Journal reported that Core Scientific was already concentrating on to wind down its Bitcoin mining operations by 2028.
Associated: American Bitcoin’s $126M profit masks mining pressure as rivals turn to AI
Mining economics added stress in the months following.
Core Scientific recorded $266.5 million in mining-related asset impairments in the primary quarter of 2026, citing weaker Bitcoin costs, historically low hashprice and falling digital asset mining tools values in the secondary market.
Throughout the second quarter, it terminated its mining tools settlement with Block and Proto, recording a $41.9 million loss as a part of the transition.
US midterms deliver scrutiny of data-center development
The deliberate exit comes because the US election outcomes introduce fresh uncertainty for corporations increasing AI infrastructure.
Opponents of data-center improvement had been among the many winners of the Democrats’ sweeping midterm positive factors, Reuters reported Wednesday.
The backlash facilities partly on electrical energy payments and the calls for giant services place on native sources.
Cointelegraph reached out to Core Scientific for remark.
Journal: Can decentralized phone networks power the AI revolution?
