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Core Scientific Is Quitting Bitcoin Mining as It Now Makes About 92% of Its Revenue Renting to AI Customers

Core Scientific has put a year-end date on abandoning the business that made its name, and its stock keeps sliding anyway. Behind the pivot sit one dominant tenant, a mountain of debt, and two milestones that could decide everything.

By Omor Ibne Ehsan
Published November 7, 2026, 2:52pm ET · 3 min read

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Core Scientific (NASDAQ:CORZ) reported third-quarter results on November 5, 2026. On the earnings call, CEO Adam Sullivan set a date for leaving the Bitcoin (CRYPTO:BTC) business: “We expect to complete our exit from Bitcoin mining by year-end.” CFO Jim Nygaard said the company should enter 2027 as a pure-play colocation provider, which means it will only rent data center space and power to AI customers.

Shares fell 10.39% on November 4 and 10.82% on November 5. They closed November 5 at $11.38 after reaching a one-year intraday low of $10.59. On November 6, they rose 3.34% to $11.76. That values the company at $3.78 billion, and the stock remains far below its one-year high of $30.46.

What the Exit Plan Commits To

Management said the year-end timeline on the call, so it is a statement of intent. The written release says only that remaining mining sites will be repurposed for colocation as circumstances allow.

The revenue mix shows how far the shift has already gone. Colocation brought in $215.4 million of total revenue of $232.9 million. That works out to about 92%, up from 83.2% in the second quarter and 18.4% a year earlier. Self-mining revenue fell to $12.3 million from $57.4 million.

Why Leasing Pays Better Than Mining

Mining income rises and falls with bitcoin’s price and with network difficulty, which measures how hard it is to earn new coins. Rent is fixed by contract. Adjusted EBITDA (operating earnings before interest, taxes, depreciation, and amortization) reached $133.6 million, about 57% of revenue. In the second quarter, it was $41.1 million, or 25%.

Net income of $1.18 billion came from a non-cash gain on warrants linked to the stock price. It tells you nothing about whether the business is profitable from operations.

Read-Through for CoreWeave and AMD

Every megawatt billed at Core Scientific is rented by CoreWeave (NASDAQ:CRWV). CoreWeave has signed 590 MW, and 485 MW is billing across five campuses. Another roughly 100 MW is being tested before transfer, and Dalton’s second phase is due by early 2027. Core Scientific says the billing capacity equals more than $700 million of annualized colocation revenue.

CoreWeave has 3.7 GW of signed power and a $104 billion backlog, so this lease is a small piece of its business. Its stock rose 6.28% to $46.40 on November 6 but is down 47.54% over the past month. It is scheduled to report on November 10, 2026.

AMD (NASDAQ:AMD | AMD Price Prediction) is the next tenant, with 530 MW across five leases. Delivery starts at Pecos in the first half of 2027, with about half online that year and the rest through 2028. AMD also holds reservation rights on about 1.9 gigawatts more.

Reality Check on Debt and Dilution

Sullivan’s targets are $1.8 billion in annual run-rate revenue and $1.6 billion in net operating income. Those apply to roughly 1.1 GW once it’s fully delivered, which runs through 2028. Shareholders’ equity is -$1.092 billion, and long-term debt is about $4.3 billion.

Liquidity is $1.74 billion including restricted cash, with $803.9 million in cash. Nygaard expects about $650 million from Tranche 1 warrants around their January 2027 expiration. Each exercised warrant adds shares, and warrants are part of the gap between roughly 322 million shares outstanding and about 509 million on a fully diluted basis.

What Could Decide Core Scientific’s Next Move

The investment case rests on having a single tenant for several more quarters. Management guided to a double-digit sequential revenue increase in the fourth quarter. The contracts lay out a path from more than $700 million toward $1.8 billion in revenue, and that is worth more than a $3.78 billion valuation implies. The main risk is the debt: if delivery slips, shareholders take the loss first.

Keep an eye on two milestones. CoreWeave’s November 10 report should confirm it can keep paying. AMD’s first Pecos megawatts should start billing in the first half of 2027. If Pecos misses that date, Core Scientific would likely remain dependent on one tenant longer, weakening the case for diversification.

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Omor Ibne Ehsan

Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.

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