Core Scientific plans to end self-mining by the end of Q4 2026 and operate only as a colocation provider for AI and high-performance computing from 2027. Colocation revenue reached $215.4 million in Q3 2026, while self-mining revenue fell to $12.3 million.
Core Scientific plans to fully exit self-mining by the end of the fourth quarter of 2026. Starting in 2027, the Nasdaq-listed company intends to operate purely as a high-density colocation provider for high-performance computing and AI workloads.
The company disclosed the plan in its third-quarter 2026 earnings report, released on November 5, 2026. Self-mining ends by December 31, 2026, and hosted mining for third parties is winding down as well.
Colocation revenue overtakes mining
Colocation revenue reached $215.4 million in Q3 2026, up nearly 60% from the prior quarter. Self-mining went the other way: revenue from that segment fell to $12.3 million, a 79% drop compared with a year earlier.
The mining operation also posted a gross loss for the quarter, while colocation is running at a 57% adjusted EBITDA margin. The company has cut its mining fleet by nearly 50% since the end of 2025, moving power and floor space to long-term customer agreements.
As of September 30, 2026, the company reported billing capacity of 485 MW. Management says that level supports more than $700 million in annualized colocation revenue.
CoreWeave and AMD anchor the new business
Core Scientific holds a long-term contract with CoreWeave covering approximately 590 MW. It also has an agreement with AMD for an initial capacity of over 500 MW, with room to scale to 2.5 GW or more.
Management expects every megawatt of its existing capacity to move over to colocation within three years. The exit has a cost, though: the company terminated its Block/Proto mining chip supply agreement in 2026 and booked a $41.9 million loss on the decision.
Revenue no longer follows Bitcoin
Core Scientific emerged from Chapter 11 bankruptcy in January 2024. Mining revenue swings with the price of Bitcoin, network difficulty and halving cycles, while multi-year colocation contracts pay on a schedule.
Crypto Briefing says the stock is no longer a leveraged bet on Bitcoin's price but a bet on AI infrastructure demand and on the company's ability to deliver capacity to a small number of very large tenants. With mining revenue heading to zero, colocation now carries the entire company.
Source: Crypto Briefing
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