The numbers behind the pivot
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 in the quarter, a 79% drop compared with a year earlier.
The mining operation also posted a gross loss for the quarter. Meanwhile, colocation is running at a 57% adjusted EBITDA margin.
The shrinkage has been deliberate. Core Scientific’s mining fleet has been cut by nearly 50% since the end of 2025, as the company moved power and floor space over 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.
Who is renting the space
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.
Those deals explain the confidence in the timeline. Management expects every megawatt of its existing capacity to move over to colocation within three years.
The exit has costs, though. The company terminated its Block/Proto mining chip supply agreement in 2026, booking a $41.9 million loss on the decision.
From bankruptcy to AI landlord
The pivot caps a dramatic few years for Core Scientific. The company emerged from Chapter 11 bankruptcy in January 2024, restructuring with an eye toward steadier revenue.
Since then, it has repurposed its facilities for colocation services. Bitcoin mining revenue swings with the price of Bitcoin, network difficulty and halving cycles, while multi-year colocation contracts pay on a schedule.
Mining sites turned out to be well suited for this shift. They already have what AI computing customers want most: large power connections, cooling infrastructure and land that is permitted for industrial use.
What this means for miners and investors
For Core Scientific shareholders, the investment case has fundamentally changed. The stock is no longer a leveraged bet on Bitcoin’s price. It is now a bet on AI infrastructure demand and on the company’s ability to deliver capacity to a small number of very large tenants.
Customer concentration matters a lot when CoreWeave and AMD represent such large slices of the contracted pipeline. Investors will want to track whether Core Scientific can bring new capacity online on schedule and meet its contractual obligations. The jump from 485 MW of billing capacity toward the multi-gigawatt potential of the AMD deal would require serious construction and power procurement.
The company has set a hard end date for mining at December 31, 2026. With mining revenue heading to zero, colocation revenue now carries the entire company.
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