Core Scientific to Fully Exit Bitcoin Mining to Focus on AI Infrastructure by 2027

Core Scientific's Strategic Shift

Core Scientific, a significant player in the Bitcoin mining sector, is charting a new course for its business by planning to terminate its Bitcoin mining operations by the end of 2026. The company's chief financial officer, Jim Nygaard, announced during the third-quarter earnings call that by 2027, Core Scientific aims to operate solely as a high-density colocation provider. Mining activities have dwindled to contribute a mere 7.5% of the company’s quarterly revenue, illustrating a substantial shift in focus toward artificial intelligence and high-performance computing.

Financial Performance Overview

In its recent quarterly earnings report, Core Scientific revealed that revenue from self-mining plummeted to $12.3 million from $57.4 million in the previous year, with hosting revenues from other miners also declining from $8.7 million to $5.2 million. Bitcoin mining brought in just $17.5 million out of a total quarterly revenue of $232.9 million, a striking contrast to the $215.4 million generated from colocation services.

Operational Changes and Future Plans

Additionally, the company has significantly reduced its mining operations, with approximately half as many miners active at the end of September compared to the close of 2025. This change in strategy was initiated after Core Scientific established its first AI hosting agreement with CoreWeave in March 2024, later solidifying a more extensive partnership in June of that same year, while still maintaining some level of Bitcoin mining.

By December 2025, business reports indicated that Core Scientific was already preparing to phase out its Bitcoin mining activities by 2028. The company faced pressure from challenging mining economics, which led to recorded asset impairments totaling $266.5 million in early 2026 due to declining Bitcoin prices and a saturated market for mining equipment. Moreover, the termination of a mining equipment agreement with Block and Proto resulted in a $41.9 million loss.

Challenges and Industry Implications

As Core Scientific strategically pivots towards AI infrastructure, this transition comes amid rising concerns regarding the impact of data centers on local resources and electricity costs. The recent US elections saw significant gains for those opposing expansive data center developments, adding an additional layer of uncertainty for firms like Core Scientific focused on AI initiatives.

In light of these challenges and shifts in operational focus, industry observers are closely monitoring Core Scientific’s transition and its implications for the broader mining and data center landscape.