Core Scientific to Exit Bitcoin Mining by 2027 as AI Data Center Business Takes Over

Core Scientific's colocation revenue hit $215.4 million in Q3, as it continues to strengthen its AI ambitions ahead of its planned Bitcoin mining exit. Core Scientific plans to end its Bitcoin mining operations by December 2026 and enter 2027 as a dedicated high-density colocation provider focused on artificial intelligence (AI) and high-performance computing (HPC), CFO Jim Nygaard said during the company’s third-quarter earnings call on Thursday. The transition has already reduced the company’s mining fleet by nearly half as it reallocates power and data-center capacity to infrastructure customers. Quarterly Colocation Revenue Colocation revenue climbed 58% quarter-on-quarter to $215.4 million in Q3, compared with $136.7 million in Q2 and $15 million in the same period last year. Total revenue rose 42% sequentially to $232.9 million, while adjusted EBITDA increased to $133.6 million from $41.1 million in the previous quarter. The adjusted EBITDA margin also expanded from 25% to 57%, which indicated improved operating performance as additional capacity came online. Core Scientific recorded net income of $1.18 billion, and reversed losses of $1.16 billion in Q2 and $144 million a ye...