Core Scientific has exited Bitcoin mining after incurring a $41.9 million loss, shifting its focus to AI colocation services.
Core Scientific has officially exited the Bitcoin mining sector by writing off $41.9 million to terminate its contract with Block and its subsidiary Proto, which was set to supply chips for mining operations. The company has abandoned its ambition to increase its hash rate, opting instead to pivot towards AI colocation services.
The cancellation of the deal, initially announced in July 2024, included provisions for 3nm chips that would have provided a hash rate around 15 EH/s. Following this decision, Core Scientific confirmed it will not pursue new investments in mining equipment.
As part of its new strategy, the firm intends to focus on generating revenue from its current facilities while considering the sale or decommissioning of ASIC miners. In the second quarter of 2026, the company saw a significant rise in AI system placements, with revenue soaring to $136.7 million, compared to just $10.6 million the previous year, representing 83% of the total revenue. Conversely, Bitcoin mining income plummeted by 66%, down to $21.5 million from $62.4 million, while revenue from hosting services for other miners was recorded at $6 million.
Core Scientific's Bitcoin production decreased by 53% year-over-year, and the average selling price for Bitcoin fell by 27%. As of June 30, 2026, the company’s AI colocation capacity increased from 395 MW to 437 MW by mid-July, with client power rentals nearing 1.1 GW.
Notably, all of the revenue generated from equipment placements was attributed to CoreWeave, which comprised about 77% of Core Scientific’s total income in the first half of 2026. Additionally, in late July, Core Scientific announced a collaboration with AMD aimed at creating 2.5 GW of data center capacity, with agreements covering around 530 MW across five sites, projected to generate over $14 billion in revenue.
Overall, Core Scientific's total revenue for the second quarter rose to $164.2 million from $78.6 million, while capital expenditures surged to $797.5 million from $121.3 million. As of June 30, 2026, the company’s obligations for procurement and construction totaled approximately $1 billion, long-term debt reached $4.3 billion, and free liquidity stood at $1.82 billion. This shift aligns with a broader trend among Bitcoin miners who are increasingly transitioning to AI amidst declining profitability pressures, as highlighted by recent data from Stanford University.
