Core Scientific projects $1.8 billion annual run-rate as it exits Bitcoin mining for AI colocation

Core Scientific is close to finishing the move from Bitcoin miner to landlord for AI hardware.

Management now expects its colocation business to generate an average annualized GAAP revenue run-rate of approximately $1.8 billion once its facilities are fully operational. That figure rests on long-term leases, not on whatever Bitcoin happens to be doing this week.

The numbers behind the pivot

The projection came alongside Core Scientific’s Q3 2026 earnings, reported on November 5, 2026. The quarter shows how far the transition has already progressed.

Colocation revenue reached $215.4 million, which made up 92% of total revenue of $232.9 million. Bitcoin mining, once the core business, is now a rounding error on the income statement.

The company posted sequential revenue growth of nearly 60% in the quarter. Billing capacity stood at 485 MW as of September 30, 2026.

The contracted pipeline is substantial. Core Scientific has approximately 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 counterpart. Initial deliveries for the AMD-related agreements are projected to begin in the first half of 2027.

Management also expects about $1.6 billion in net operating income from the full colocation footprint, implying margins of approximately 90%. The company says more than half of its expected cash flows should be backed by investment-grade credit.

Taken together, Core Scientific sees potential for over $24 billion in total contracted revenue from its colocation operations. That is a projection across the life of the contracts, not money already in the bank.

From hashrate to high-density racks

Core Scientific plans to exit Bitcoin mining by Q4 2026. Starting in 2027, it intends to operate exclusively as a high-density colocation provider for AI workloads.

What this means for investors and the sector

There is a gap between today and the target. The Q3 colocation figure of $215.4 million, annualized, comes to well under half of the $1.8 billion run-rate management expects. 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 expected until the first half of 2027.

Customer concentration is another factor worth watching. CoreWeave alone accounts for 590 MW of contracted capacity, and the AMD-backed counterpart accounts for 530 MW. That puts the bulk of the pipeline with two relationships.

For now, Core Scientific’s own scorecard is straightforward. Watch billing capacity climb from 485 MW toward 1.1 GW, watch the mining exit complete by year-end, and watch whether the AMD-related deliveries arrive on schedule in 2027. If those milestones land, the $1.8 billion projection starts looking less like a forecast and more like a lease schedule.