Core Scientific, one of the largest US bitcoin mining and data-center operators, has told investors it intends to stop mining bitcoin for its own account before the year is out. The plan came with its third-quarter results in early November, and it marks one of the clearest signs yet that public miners are choosing AI and high-performance computing over hashing.
What the company said
Management said the wind-down of self-mining should be completed during the fourth quarter, so the company can begin 2027 as a pure-play, high-density colocation provider. Hosted mining for third parties is also being phased out. The timeline is faster than earlier guidance, which had pointed to a much later exit.
The numbers explain the decision. Self-mining revenue dropped to roughly $12 million in the quarter, compared with about $57 million a year earlier, while colocation revenue climbed above $215 million. The mining fleet has already been cut by close to half since the end of 2025, and the company also ended a chip supply agreement, taking a loss of around $42 million.
Why miners are pivoting
Several pressures are pushing in the same direction:
- Thin margins: With the block subsidy halved in the last halving, revenue per terahash has shrunk, and only the cheapest power makes older machines worthwhile.
- High network competition: Hashrate is hovering around the 1 ZH/s mark, and mining difficulty remains elevated even after recent small downward adjustments.
- Better returns on power: A megawatt leased to AI customers on long contracts can earn steadier income than the same megawatt feeding ASICs whose revenue swings with the bitcoin price.
Bitfarms announced a similar direction a year ago, and the Core Scientific move suggests it is no longer an outlier among listed companies.
What it means for the rest of the network
A large operator leaving does not by itself threaten the network. Hashrate that drops out tends to be absorbed by others, and difficulty adjusts every two weeks to keep block times near ten minutes. The more interesting effect is on the hardware market. Fleets being retired or sold can put used machines from Bitmain, MicroBT Whatsminer and others onto the secondary market, often at attractive prices.
Buyers should be careful, though. Used miners vary widely in condition, and counterfeit or refurbished units are common, so read our guide on how to avoid fake ASIC miners before buying. Efficiency also matters more than ever: an older unit only pays if your electricity is cheap, so check the power consumption of a typical miner against your tariff first.
For small and mid-size operators, squeezing out efficiency is one of the few levers left. Tuning with undervolting or modified firmware can lower the cost per terahash, which becomes critical when margins are this tight.
The takeaway
Mining is not disappearing, but it is concentrating among operators with the lowest power costs and the newest hardware, while large US firms redeploy their sites for AI. Hobbyists and mid-size miners should expect continued pressure on margins, and a growing supply of second-hand equipment. Watch the next few difficulty adjustments and the fourth-quarter updates from other listed miners to see whether others follow Core Scientific out of the business.
