Core Scientific will stop mining bitcoin by the end of 2026, CEO Adam Sullivan said during the company’s third-quarter report on Nov. 5, 2026. The move will position the company to enter 2027 as a provider of high-density colocation services, hosting clients’ artificial intelligence computing equipment in its data centers.

Core Scientific has been reducing its mining operations gradually. CFO Jim Nygaard said the number of active mining devices at the end of September was nearly 50% lower than at the end of 2025.

The company plans to complete the wind-down during the fourth quarter. It will not purchase new equipment to mine bitcoin, while its existing application-specific integrated circuit miners will be sold or decommissioned.

Core Scientific held 848 BTC worth about $63.99 million as of Nov. 6, 2026, according to BitcoinTreasuries data. It held 2,537 BTC at the beginning of the year. In March, the company said it intended to sell all its bitcoin during 2026.

Colocation revenue rises nearly 60%

The transition to AI infrastructure is already reflected in Core Scientific’s financial results. Third-quarter colocation-services revenue increased nearly 60% from the previous quarter to $215 million.

Adjusted earnings before interest, taxes, depreciation and amortization exceeded $130 million, more than triple the $41 million reported for the second quarter. The adjusted EBITDA margin rose to 57% from 25%.

Core Scientific added another 90 MW of capacity during the quarter and is already billing customers for it. The company is billing for 485 MW of the 590 MW covered by its agreements with CoreWeave across five sites. Roughly another 100 MW is being commissioned and is expected to be connected in the coming months.

The company expects double-digit revenue growth in the fourth quarter compared with the previous quarter. Management said fully executed contracts with CoreWeave and AMD, covering a combined 1.1 GW, should generate about $1.8 billion in average annual revenue and $1.6 billion in net operating income once fully ramped.

Core Scientific prepares AMD project financing

Core Scientific is also working to execute its agreement with AMD for an initial 530 MW. Deliveries are expected to begin at the Pecos site in the first half of 2027, with roughly half the capacity scheduled to come online over the following year and the rest in 2028.

The company is considering project bonds and other debt instruments to finance construction. It has already funded the equity contribution required for the initial 530 MW phase from available cash. Nygaard said Core Scientific does not plan to issue additional shareholder equity or equity-linked instruments for that phase.

Core Scientific had about $1.7 billion of liquidity at the end of the third quarter. That included $800 million in cash, $840 million in restricted cash and debt-service reserves, and an available $100 million credit facility.

The company expects to receive about $650 million from the exercise of the first tranche of warrants in January 2027. It plans to use the proceeds primarily to finance future construction.

Core Scientific is also evaluating about 2 GW of potential capacity at new sites that could begin operating in 2029 or later. Sullivan said the company had increased the number of assets listed for sale, including land with access to power and facilities with contracts already in place.

According to Sullivan, limited access to financing is constraining some market participants, creating opportunities for companies with enough capital and experience to deliver large-scale projects.

Core Scientific previously secured a loan of up to $1 billion to expand its AI operations and plans to acquire miner Polaris for $420 million to support the expansion of its AI infrastructure.

Source: Incrypted