Core Scientific Ends Bitcoin Mining to Focus on AI

Core Scientific announced it will fully shut down its Bitcoin mining operations by the end of this year. Starting in 2027, the company will operate exclusively as a colocation service provider for artificial intelligence and high-performance computing.

Third-quarter financial results highlight the strength of this transition. Colocation revenue reached $215.4 million while self-mining revenue fell to $12.3 million. This figure represents a 79% drop in mining revenue compared to the same period last year.

The gross margin for the colocation segment hit 60% in the quarter ending September 30. Conversely, self-mining recorded a gross loss of $7.5 million. The company's adjusted EBITDA more than tripled during the period to reach $133.6 million.

The strategy involves converting physical space and power to fulfill long-term contracts with technology clients. The firm already has 485 megawatts of colocation capacity in operation. New agreements with partners like AMD expect to deliver an additional 530 megawatts by 2028.

This shift reflects a trend in the crypto mining sector where companies seek greater financial stability by leasing infrastructure to AI data centers. The transition to the artificial intelligence sector may increase demand for high-performance chips and strain energy infrastructure supply in global markets.