In its quarterly report, Core Scientific disclosed a $41.9 million payment to terminate its contract with Block and its subsidiary Proto, which was to supply chips for Bitcoin mining. The company has officially abandoned its plans to increase its hash rate and is shifting its focus to AI colocation services.
The report did not provide additional details regarding the payment beyond the stated loss of $41.9 million.
The agreement, announced in July 2024, involved the delivery of 3nm chips with a total hash rate of approximately 15 EH/s and included options for additional volume. Following the cancellation of this order, Core Scientific confirmed that it would not invest in new mining equipment to maintain or expand its cryptocurrency mining capabilities.
Instead, the company plans to generate cash flow from its existing installations while potentially selling or decommissioning ASIC miners as it repurposes its facilities.
In the second quarter of 2026, revenue from AI system placements surged to $136.7 million, up from $10.6 million in the previous year, accounting for 83% of total revenue. Meanwhile, income from its own Bitcoin mining plummeted by 66%, falling to $21.5 million from $62.4 million, and revenue from hosting services for third-party miners reached $6 million.
Bitcoin production dropped 53% year-over-year, and the average selling price fell by 27%. As of June 30, 2026, the capacity for AI colocation was 395 MW, which increased to 437 MW by mid-July 2026. The total amount of power rented by clients approached approximately 1.1 GW.
All current revenue from equipment placements is attributed to CoreWeave, which contributed about 77% of Core Scientific's total income in the first half of 2026.
At the end of July, Core Scientific also announced a partnership with AMD to potentially develop 2.5 GW of data center capacity. The initial 15-year agreements cover about 530 MW across five sites and are estimated to generate over $14 billion in contractual revenues.
Overall revenue for Core Scientific in the second quarter rose to $164.2 million from $78.6 million. Capital expenditures jumped to $797.5 million from $121.3 million. As of June 30, 2026, procurement and construction obligations were around $1 billion, long-term debt stood at $4.3 billion, and free liquidity was $1.82 billion.
It’s worth noting that in 2026, major Bitcoin miners accelerated their transition to AI due to pressure on Bitcoin profitability, as confirmed by data from Stanford University.