Core Scientific Q3 Colocation Revenue Surges 60% to $215.4 Million

Core Scientific reported third-quarter 2026 financial results on Nov. 5, showing a sequential colocation revenue surge of nearly 60% to $215.4 million ¹. Total revenue reached $232.9 million for the quarter ended Sept. 30, up from $164.2 million in the prior quarter, driven by the expansion of billing megawatts for high-density colocation services ¹. Billing capacity expanded to 485 megawatts, which the company stated represents over $700 million in average annualized colocation revenue under GAAP ¹.

The company posted net income of $1.18 billion, swinging from a net loss of $1.16 billion in the second quarter of 2026 ¹. Core Scientific stated the bottom line benefited primarily from a non-cash gain linked to the changing fair value of warrant liabilities, reflecting fluctuations in its stock price ¹. Adjusted EBITDA more than tripled quarter-over-quarter to $133.6 million, lifting EBITDA margins to 57% from 25% in the second quarter ¹. Capital expenditures rose to $985.1 million during the three-month period, up from $797.5 million in the prior quarter, as the firm expanded site development across multiple campuses ¹.

Shifting Capacity Toward AI Workloads

Core Scientific continues to redirect infrastructure away from traditional cryptocurrency mining toward artificial intelligence colocation ¹. The company noted that the majority of its revenue now stems from high-density colocation services, while the remainder comes from self-mining digital assets and mining hosting ¹. The firm is actively repurposing remaining mining assets to support AI computing workloads across its facilities located in Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma, and Texas ¹.

This operational transformation mirrors a wider trend across the mining sector, where operators are converting electrical capacity to support enterprise computing, as detailed in Basis Desk reporting on why Bitcoin miners are pivoting to AI ¹. Chief Executive Officer Adam Sullivan stated that the company is nearing complete delivery under its initial colocation agreement while building out infrastructure under a second contract across five campuses ¹.

Total liquidity and debt service reserve accounts stood at $1.74 billion as of Sept. 30, down from $2.60 billion at the end of June ¹. Digital asset holdings fell to $2.69 million on the balance sheet, down from $49.68 million on June 30 and $222 million at year-end 2025, underscoring the ongoing capital and balance-sheet rotation away from held tokens ¹. At the time of writing, $BTC traded at $76,103.