Core Scientific is close to finishing its move from Bitcoin miner to AI colocation provider. Management now says the business can reach an average annualized GAAP revenue run-rate of about $1.8 billion once facilities are fully operational. That number depends on long-term leases, not on Bitcoin prices.
Q3 shows the shift
The projection came with Q3 2026 earnings on November 5, 2026. Colocation revenue was $215.4 million, or 92% of total revenue of $232.9 million. Bitcoin mining, once the main business, is now a small part of the income statement. Revenue grew nearly 60% from the prior quarter. Billing capacity was 485 MW on September 30, 2026.
Contracts and capacity
Core Scientific has about 1.1 GW of contracted power capacity. That includes 590 MW under a long-term deal with CoreWeave. Another 530 MW is tied to a 15-year agreement with an AMD-backed neocloud customer. Initial deliveries for that AMD-related work are expected in the first half of 2027.
Management also expects about $1.6 billion in net operating income from the full colocation footprint. That implies margins near 90%. The company says more than half of expected cash flows should be backed by investment-grade credit. In total, it sees potential for more than $24 billion in contracted revenue across the life of the contracts. That is not cash in hand today.
What to watch
There is a gap between current results and the target. The Q3 colocation revenue, annualized, is well under half of the $1.8 billion run-rate. Billing capacity of 485 MW is also less than half of the roughly 1.1 GW under contract.
Closing that gap depends on new facilities coming online on time. The first AMD-related deliveries are not due until the first half of 2027. Customer concentration is another issue. CoreWeave accounts for 590 MW and the AMD-backed counterpart accounts for 530 MW. Most of the pipeline sits with two relationships.
Core Scientific plans to exit Bitcoin mining by Q4 2026. Starting in 2027, it intends to operate only as a high-density colocation provider for AI workloads. For now, the scorecard is simple. Watch billing capacity climb toward 1.1 GW. Watch the mining exit finish by year-end. Watch whether AMD-related deliveries arrive on schedule in 2027. If those milestones land, the $1.8 billion target looks less like a forecast and more like a lease schedule.
