Core Scientific to quit Bitcoin mining by year-end as AI business surges
The former Bitcoin mining heavyweight plans to become a pure-play data center provider in 2027, with mining now accounting for just 7.5% of quarterly revenue.
Core Scientific, once a major player in Bitcoin mining, announced plans to abandon mining entirely by the end of 2026 in favor of a pure-play high-density colocation provider focused on artificial intelligence and high-performance computing infrastructure. CFO Jim Nygaard disclosed the wind-down strategy during a Q3 earnings call on Thursday.
Mining now accounts for a mere 7.5% of the company's quarterly revenue, down from $57.4 million in the third quarter of 2025 to $12.3 million, while hosting other miners saw a similar decline from $8.7 million to $5.2 million. Bitcoin mining's contribution to Core Scientific's Q3 revenue of $232.9 million dropped to $17.5 million.
The company expects to complete its exit by the fourth quarter of 2026, with nearly half the miners offline by the end of September 2025 compared to September 2025. Core Scientific entered the AI hosting market in 2024 through agreements with CoreWeave, subsequently expanding its offerings. The shift away from Bitcoin mining was driven by declining mining economics, with $266.5 million in mining-related asset impairments recorded in Q1 2026 due to weaker Bitcoin prices and falling equipment values.
The planned exit coincides with potential political uncertainty following the US election, which may impact AI infrastructure expansion.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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