Core Scientific, once the world's largest Bitcoin mining company, plans to completely shut down its proprietary Bitcoin mining operations by the fourth quarter of 2026 as it accelerates a strategic shift toward high-performance computing (HPC) colocation services.
The company outlined the transition during its third-quarter earnings call, reporting a nearly 50% decline in the number of active miners on its network compared with the end of 2025. Under its current plan, Core Scientific will exit Bitcoin mining entirely in Q4 2026 and operate purely as an HPC colocation provider starting in 2027.
The shift marks a major change in the company's business model, moving away from operating its own Bitcoin mining equipment toward providing infrastructure and colocation services for high-performance computing workloads.
Bitcoin Mining Operations Face a Complete Phase-Out
Core Scientific is accelerating the reduction of its proprietary mining business as it prepares to end those operations. The number of active miners on its network has already fallen by nearly 50% compared with the level recorded at the end of 2025, according to information reported by Wu Blockchain.
The planned shutdown is scheduled for the fourth quarter of 2026. From 2027, the company intends to focus exclusively on HPC colocation, making the transition from a Bitcoin mining operator to a provider of computing infrastructure.
Core Scientific's decision represents a significant change for a company that was once among the largest players in the Bitcoin mining industry. Rather than continuing to operate its proprietary mining fleet, it is positioning its business around colocation services.
Colocation Revenue Reaches $215 Million in Q3
The company's latest financial figures show growing revenue from its colocation business. Core Scientific generated $215 million in colocation revenue during the third quarter, representing an increase of nearly 60% compared with the previous quarter.
Its EBITDA margin also expanded to 57% during the period. The figures indicate that colocation has become a substantial part of the company's reported financial performance as it reduces its exposure to proprietary Bitcoin mining.
The combination of higher colocation revenue and an expanded EBITDA margin provides a financial backdrop to the planned transition. However, the reported figures do not establish how much revenue the company will generate after its mining operations are fully discontinued.
Core Scientific's stated timeline is to complete the shutdown of its Bitcoin mining business in Q4 2026 and begin operating purely as an HPC colocation provider in 2027. Its third-quarter colocation revenue reached $215 million, up nearly 60% quarter-over-quarter, while its EBITDA margin stood at 57%.
Writer: Victoria Hale Technology & Blockchain Writer
Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.
She prioritises clarity and accuracy when explaining technical developments to a general audience.
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Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
