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Core Scientific says it will finish exiting bitcoin mining by year-end as colocation hits $215 million
Summary
Core Scientific said on its third-quarter results that it is repurposing remaining mining facilities for high-density colocation, and management told investors on Thursday's earnings call it expects to complete its exit from bitcoin mining by year-end, Bitcoin Magazine reported, citing CEO Adam Sullivan and CFO Jim Nygaard.
The company's official release put Q3 colocation revenue at $215.4 million, up nearly 60% sequentially, with 485 MW billing as of Sept. 30 and more than $700 million in average annualized colocation GAAP revenue; total revenue was $232.9 million.
Bitcoin Magazine said digital-asset self-mining revenue fell to $12.3 million, down about 79% from a year earlier, hosted mining added $5.2 million, and colocation was about 92% of revenue; self-mining posted a $7.5 million gross loss while adjusted EBITDA more than tripled sequentially to $133.6 million.
Nygaard said the company had nearly 50% fewer miners online at the end of September than at year-end 2025, Bitcoin Magazine reported; digital assets on the balance sheet were $2.7 million as of Sept. 30, down from $49.7 million three months earlier and $222 million at year-end 2025, per the release and Bitcoin Magazine.
Beyond CoreWeave's contracted 590 MW, Core Scientific has 530 MW under an AMD-backed agreement, with the two relationships covering about 1.1 GW that management expects could generate $1.8 billion in average annual run-rate revenue once fully delivered and billing, Bitcoin Magazine reported.
Updates
- Update, : Update (Nov. 5, evening): Cointelegraph also reported Core Scientific expects to exit bitcoin mining by year-end, quoting CFO Jim Nygaard that the firm aims to "complete the wind-down during the fourth quarter and enter 2027 as a pure-play, high-density colocation provider," and noting mining was about 7.5% of Q3 revenue after $266.5 million in mining-related impairments in Q1 2026 and a $41.9 million loss tied to ending a Block/Proto equipment deal in Q2.
Key facts
- CEO Adam Sullivan: "We expect to complete our exit from Bitcoin mining by year end."
- CFO Jim Nygaard said the company expects to "complete the wind-down during the fourth quarter."
- Q3 net income was $1.2 billion, primarily from a non-cash gain in the fair value of warrants; Adjusted EBITDA was $133.6 million with a 57% margin, the company said.
- Liquidity ended the quarter at about $1.7 billion, including roughly $800 million in cash, Bitcoin Magazine noted alongside the release's liquidity figures.
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