Core Scientific plans to end its Bitcoin mining operations by December 2026 and enter 2027 as a high-density colocation provider dedicated to artificial intelligence (AI) and high-performance computing (HPC), Chief Financial Officer Jim Nygaard said Thursday during the company’s third-quarter earnings call.
The transition has already cut the company’s mining fleet by almost half as it reallocates power and data center capacity to infrastructure customers.
Quarterly roommate income
Roommate income climbed 58% quarter-over-quarter to $215.4 million in the third quarter, compared to $136.7 million in the second quarter and $15 million in the same period last year. Total revenue increased 42% sequentially to $232.9 million, while adjusted EBITDA increased to $133.6 million from $41.1 million in the prior quarter. Adjusted EBITDA margin also increased from 25% to 57%, reflecting improved operational performance as additional capacity was brought into service.
Core Scientific reported net income of $1.18 billion and reversed losses of $1.16 billion in the second quarter and $144 million a year earlier. However, the result includes a substantial non-monetary gain from changes in the fair value of the warrants, so this figure does not solely reflect the underlying performance of the business.
Nygaard also spoke about the scale of operational change. At the end of September, the company had nearly 50% fewer miners online than at the end of 2025. At the same time, it was billing 485 megawatts of colocation capacity, an increase of 90 MW during the quarter. This capacity represents more than $700 million in average annualized GAAP colocation revenue.
Approximately 100 MW remaining under its CoreWeave construction are being commissioned. Revenue recognition is expected to begin in the coming months, CEO Adam Sullivan said.
But Core Scientific is not alone. Several publicly traded BTC miners have geared their infrastructure towards AI workloads. For example, Riot is developing large-scale AI data centers, while MARA is diversifying into AI infrastructure in addition to its ongoing Bitcoin mining operations.
Pressures on profitability
Competition among Bitcoin miners remains intense and another major reduction in rewards will make mining less lucrative within 17 months.
The pressure on traditional mining operations is also evident in the latest American BTC results. The company supported by Eric Trump reported $126 million in quarterly net profit, but that figure was largely supported by a $197.3 million non-cash gain on its Bitcoin holdings. Its mining business performed weaker, with revenue down 5.5% quarter-over-quarter to $63.4 million, while the cost of mining one BTC increased by around 15% to $42,100.
Without the gain on its Bitcoin holdings, American Bitcoin would have recorded a loss of approximately $5.5 million. It also reported a loss of $64.3 million on derivatives. CEO Mike Ho said the company continues to mine Bitcoin below spot market prices despite seasonal increases in electricity costs.
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