Core Scientific Writes Off $41.9 Million to Accelerate Exit from Bitcoin Mining

In its quarterly report, Core Scientific disclosed a payment of $41.9 million to terminate a contract with Block and its subsidiary Proto for the supply of chips for Bitcoin mining. The company is definitively abandoning plans to increase its hash rate and is shifting its business to an AI colocation model.

Additional payment terms beyond the reflected loss of $41.9 million were not disclosed.

The agreement, announced in July 2024, stipulated the supply of 3nm chips with a total hash rate of approximately 15 EH/s and included an option for additional volume. Following the cancellation of the order, Core Scientific stated that it would not invest in new mining equipment to maintain or expand its cryptocurrency mining capacity.

The company plans to generate cash flow from its existing fleet of installations. Concurrently, the firm intends to repurpose its sites, selling or decommissioning ASIC miners as necessary.

In the second quarter of 2026, revenue from AI system hosting surged to $136.7 million compared to $10.6 million a year earlier, accounting for 83% of total revenue. Income from proprietary mining fell by 66% to $21.5 million from $62.4 million. Revenue from hosting for third-party miners amounted to $6 million.

Quarterly Bitcoin production decreased by 53% year-over-year, and the average realized price dropped by 27%. As of June 30, 2026, capacity for AI colocation was 395 MW, and by mid-July 2026, it reached 437 MW. The total customer-leased power capacity reached approximately 1.1 GW.

All current revenue from hardware hosting comes from CoreWeave. The company accounted for about 77% of Core Scientific's total revenue in the first half of 2026.

At the end of July, Core Scientific also announced a partnership with AMD for a potential 2.5 GW of data center capacity. The initial 15-year agreements cover approximately 530 MW across five sites and, according to the company's estimates, could bring in over $14 billion in contracted revenue.

Core Scientific's total revenue in the second quarter grew to $164.2 million from $78.6 million. Capital expenditures jumped to $797.5 million from $121.3 million. As of June 30, 2026, purchase and construction commitments were approximately $1 billion, long-term debt was $4.3 billion, and free liquidity was $1.82 billion.

Recall that in 2026, major Bitcoin miners accelerated their transition to AI amid pressure on Bitcoin's profitability, according to data confirmed by Stanford University.