Core Scientific has officially announced plans to completely exit the Bitcoin mining business by the end of 2026. The company is pivoting entirely to become a high-density computing data center infrastructure provider for artificial intelligence starting in 2027.
The timeline to wind down both self-mining operations and hosting services is slated for completion in the fourth quarter of 2026. Details of the phase-out process were disclosed directly by Chief Financial Officer Jim Nygaard during the company’s third-quarter 2026 earnings presentation on Thursday.
The move reinforces the company’s new trajectory as it steadily winds down its commitment to cryptocurrency mining.
Mining Revenue Shrinks to 7.5%
Bitcoin mining, once the cornerstone of Core Scientific’s revenue, has lost its dominance on the balance sheet. The mining business’s contribution to total quarterly revenue has shrunk to just 7.5% as infrastructure capacity is repurposed for artificial intelligence facilities.
By the end of September 2026, Core Scientific’s active mining fleet had dropped by nearly 50% compared to levels at the end of 2025. The reduction in active units coincided with the redirection of power capacity to new computing facilities.
Financial pressure on the mining business has weighed on the company’s books since early in the year. In the first quarter of 2026, Core Scientific recorded a $266.5 million asset impairment charge on its mining facilities. The write-down was driven by a combination of three factors: declining Bitcoin prices, record-low hashprices, and a steep drop in secondary market values for mining rigs.
In the second quarter of 2026, Core Scientific further scaled back its mining commitments by terminating hardware supply agreements with Block and Proto. The cancellation of those procurement deals resulted in a $41.9 million transition loss.
2028 Target Moved Up by Two Years
Core Scientific’s transition toward the artificial intelligence sector began with hosting agreements signed with CoreWeave in March and June 2024. When that partnership was struck, the plan to phase out mining operations was originally slated for completion in 2028. However, on-the-ground execution progressed faster than anticipated, moving the full exit target up to the end of 2026.
Beyond computing facilities, data center expansion is beginning to run into local regulatory and political hurdles. Core Scientific’s decision to leave mining unfolds as US midterm election results reshape local power dynamics. Opponents of data center expansion scored political victories in several regions over concerns regarding rising electricity rates for local residents.
For the computing and crypto mining industries, Core Scientific’s pivot highlights a tangible shift in power capacity allocation from transaction block validation to artificial intelligence servers. The next test now lies in the public policy arena, as resident concerns over utility costs begin to cast a shadow over permit approvals for high-density computing facility expansions.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
