Core Scientific plans to fully end its Bitcoin mining operations in the fourth quarter of 2026 and operate exclusively as a colocation provider for high-performance computing and artificial intelligence workloads starting in 2027. In the third quarter of 2026, colocation revenue reached $215.4 million, up nearly 60% from the prior quarter, while mining revenue fell 79% year over year to $12.3 million. The company had 485 MW of billable capacity as of September 30, 2026 and estimates that this capacity could generate more than $700 million in annualized colocation revenue. It holds a long-term contract with CoreWeave covering approximately 590 MW and an initial agreement with AMD for more than 500 MW, with the potential to scale to 2.5 GW or more. The transition carries costs, including the termination of the Block/Proto mining chip supply agreement and a $41.9 million loss, while creating significant customer concentration and construction and power procurement challenges.
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