--- title: "Core Scientific Q3 Colocation Revenue Surges 60% to $215.4 Million" description: "The digital infrastructure operator reported $1.2 billion in net income as billing capacity reached 485 megawatts amid high-density colocation expansion." url: https://basisdesk.news/news/core-scientific-q3-2026-colocation-revenue-results published: 2026-11-06T00:31:20.526Z modified: 2026-11-06T00:31:20.526Z section: Mining & Infrastructure author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [BTC] tags: [Core Scientific, HPC, AI, Bitcoin Mining, Earnings] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Core Scientific Q3 Colocation Revenue Surges 60% to $215.4 Million The digital infrastructure operator reported $1.2 billion in net income as billing capacity reached 485 megawatts amid high-density colocation expansion. ## At a glance - **What happened:** Core Scientific reported third-quarter colocation revenue of $215.4 million, up nearly 60% sequentially, with 485 megawatts of billing capacity on Nov. 5, 2026. - **Why it matters:** The company now derives the majority of its revenue from high-density AI colocation rather than traditional cryptocurrency mining operations. - **Who is affected:** Core Scientific shareholders, high-density colocation enterprise clients, and competing data center operators. - **What's next:** Delivery under Core Scientific's initial colocation deal and ongoing construction across five campuses under its second contract. - **Primary source:** [Core Scientific Announces Third Quarter 2026 Results](https://investors.corescientific.com/news-events/press-releases/detail/146/core-scientific-announces-third-quarter-2026-results) — investors.corescientific.com ## Key points - Colocation revenue rose nearly 60% quarter-over-quarter to $215.4 million, driving total Q3 revenue to $232.9 million [1]. - Net income reached $1.18 billion, primarily aided by non-cash fair-value gains on warrant liabilities, with adjusted EBITDA reaching $133.6 million [1]. - Billing capacity expanded to 485 megawatts as the company continues repurposing mining facilities for AI colocation [1]. ## Editorial remark - **Context:** Post-halving economics and escalating AI compute demand have pushed power-rich Bitcoin miners to repurpose site capacity for high-density colocation contracts. - **Impact:** Core Scientific's operational shift reduces revenue reliance on volatile cryptocurrency prices, converting power capacity into multi-year contracted colocation cash flows. - **Watch:** Execution and timeline delivery on construction across five campuses under the company's second major colocation contract. 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](https://basisdesk.news/news/bitcoin-miners-ai-hpc-data-centers) [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. ## Sources 1. [Core Scientific Announces Third Quarter 2026 Results](https://investors.corescientific.com/news-events/press-releases/detail/146/core-scientific-announces-third-quarter-2026-results) — investors.corescientific.com, 2026-11-05 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai