Core Scientific Expects to End Bitcoin Mining in Fourth Quarter as Revenue Jumps to $232.866 Million
Key Facts
Core Scientific expects to complete the wind-down of its mining operations during the fourth quarter of 2026 and enter 2027 as a specialist provider of high-density computing hosting, Chief Financial Officer Jim Nygaard said during the company’s earnings call on November 5. The company’s filing sets December 31, 2026, as the end date for hosted mining operations, while saying it continues to wind down self-mining. The shift comes as data-center hosting takes a larger share of revenue, with the company’s revenue rising to $232.866 million in the third quarter. That was up from $164.201 million in the second quarter and $81.103 million in the third quarter of 2025. Nygaard said, "We expect to complete the wind-down of operations during the fourth quarter and enter 2027 as a specialist provider of high-density computing hosting."
Hosting revenue was $215.432 million in the third quarter, compared with $136.669 million in the second quarter and $14.951 million in the same period last year. The company said revenue increased by about 60% quarter over quarter, driven by continued delivery of billable power capacity to customers. The figures reflect the growing weight of hosting in the company’s business over the past year, alongside the wind-down of mining activity. Self-mining, by contrast, generated revenue of $12.263 million, down from $57.438 million in the third quarter of 2025. The company attributed the decline mainly to lower bitcoin production and a decrease in average realized prices. Hosted mining revenue was also $5.171 million, compared with $8.714 million a year earlier.
Adjusted earnings before interest, taxes, depreciation and amortization were $133.568 million in the third quarter, up from $41.103 million in the second quarter and $6.501 million in the same period of 2025. The company recorded net income of $1.1781 billion, compared with a net loss of $144 million in the third quarter last year. But the company said third-quarter net income was primarily affected by a gain from the change in the fair value of warrants. Its filing said net income for the period through September 30 was also affected by a $266.5 million impairment charge on mining-related property and equipment, recorded in the first quarter. The company linked the charge to deteriorating mining economics. These items place operating results and hosting growth alongside the impact of accounting valuations on reported net profit.
The company said it was billing customers for 485 megawatts of capacity on September 30, equivalent to more than $700 million in annual hosting revenue calculated under generally accepted accounting principles. Its November 5 earnings presentation showed about 485 megawatts billed out of CoreWeave contracts totaling about 590 megawatts. The listed sites include facilities in Denton, Texas; Dalton, Georgia; Muskogee, Oklahoma; Marble, North Carolina; and Austin, Texas. The company estimated that the remaining capacity at the Denton site would be completed in early 2027. The presentation said CoreWeave contracts carry potential revenue of more than $10 billion over their terms and average annual hosting revenue of nearly $850 million. Most of the listed contracts run for 12 years, while the Austin contract runs for 7 years.
The expansion of the relationship with CoreWeave dates to an announcement in February 2025, when Core Scientific said its high-performance computing infrastructure agreement covered about 590 megawatts across six sites. The company added at the time that an expansion of the Denton agreement added $1.2 billion in contracted revenue. The addition covered 70 megawatts, lifting the site’s critical IT load to slightly more than 260 megawatts. This provides background to the contracts that have become central to the company’s new model, as it continues to close down its mining business. The date specified in the filing for ending hosted mining remains December 31, 2026, while the company has not set a separate date in its published information for completing the wind-down of self-mining operations.
Core Scientific shares, trading under the ticker CORZ, closed at $11.38 on November 5, according to EL7 data. The close came on the day of the earnings call at which the chief financial officer outlined expectations for winding down mining during the fourth quarter. The share price provides context for the operational shift and quarterly results, which showed growth in hosting revenue and adjusted earnings. The figures also highlight that reported net income was affected by the change in the fair value of warrants, alongside increased revenue from hosting. The company expects to complete the mining wind-down in the fourth quarter and enter 2027 as a specialist hosting provider, while estimating that the remaining capacity at Denton will be completed early that year.