Core Scientific reported colocation revenue of $215.4 million for the third quarter, up from $136.7 million in the second, according to its results release dated Thursday, 5 Nov.
Bitcoin mining is now a small slice. The company’s 10-Q shows self-mining revenue of about $12.3 million and hosted mining revenue of about $5.2 million. Together that is about $17.5 million, or roughly 7.5% of the $232.9 million total.
Sullivan’s wind-down comment, reported by Cointelegraph from the earnings webcast, puts a date on a shift the filings already describe: the company says it is repurposing remaining mining facilities for high-density colocation as circumstances allow.
The business model, in one sentence: Core Scientific is turning former mining halls into contracted AI and high-performance computing capacity, and it wants mining off the income statement by year-end.
The numbers
Billing capacity reached 485 megawatts at 30 Sep, which the company says equates to more than $700 million of average annualised colocation GAAP revenue. Adjusted EBITDA more than tripled sequentially to $133.6 million, with the company putting the margin at 57%.
Gross profit was $123.3 million. Capital expenditure was $985.1 million. Liquidity and debt-service reserve accounts stood at about $1.74 billion.
Net income of about $1.18 billion is not an operating story. The release says the figure was driven mainly by a non-cash gain on the change in fair value of warrants as the share price moved.
The skeptics
The company’s own table gives the caution.
Mining is already small, but it is not yet zero, and the 10-Q still describes digital-asset mining hosting alongside the colocation push. CapEx near $1 billion in a single quarter is the price of the conversion. Liquidity fell from about $2.60 billion at mid-year to about $1.74 billion.
Peers are on related paths for different reasons. American Bitcoin’s $126 million Q3 profit still comes from holding bitcoin, while Riot leasing Corsicana to Anthropic is renting a campus rather than exiting coins overnight.
What’s next
Sullivan said the company is nearing full delivery under its first colocation contract and that sequential colocation growth is showing up in GAAP revenue. The next test is whether Q4 actually finishes the mining wind-down he described on the call.
Related: IREN aims to substantially complete its bitcoin mining exit by year-end
This article is for information only and is not investment advice.