Core Scientific on 5 November 2026 reported third-quarter colocation revenue of $215.4 million, about 60% higher sequentially, with 485 megawatts of billing capacity, according to its investor press release and Form 8-K. Total revenue was $232.9 million. Adjusted EBITDA was $133.6 million, a 57% margin. Capital expenditure was $985.1 million. Net income was $1.18 billion, which the company attributes mainly to non-cash warrant fair-value changes.
Chief executive Adam Sullivan pointed to a “significant sequential increase in GAAP colocation revenue.” The company said average annualised colocation GAAP revenue implied by the billing base is more than $700 million.
What Core Scientific said about colocation and mining
Billing of 485 MW is the operating scale figure behind the colocation line. CapEx near $1 billion in the quarter reflects the build-out of HPC and AI-oriented capacity rather than a pure mining expansion, on the company’s framing. The IR materials present those megawatts as already billing, which is stronger than a future contracted-but-dark capacity claim.
On bitcoin mining, Core Scientific said it is “in the process of repurposing its remaining mining facilities … as circumstances allow.” That is the company’s wording. It is not a commitment to exit mining by a fixed year-end date.
Total revenue of $232.9 million means high-performance computing and AI hosting now dominate the top line, with mining and other lines a smaller remainder in this quarter’s presentation. Adjusted EBITDA at a 57% margin is the profitability measure management emphasises alongside GAAP colocation growth; CapEx of $985.1 million shows how much cash is still going into capacity before those contracts fully season.
Compared with pure bitcoin-mining quarters in prior years, the Q3 mix puts colocation first in both the press release and the 8-K narrative. That ordering matches Sullivan’s emphasis on sequential GAAP colocation growth and matches the CapEx scale required to energise hundreds of megawatts for AI tenants rather than ASICs alone.
How this sits with other miner-to-AI conversions
TSN has covered Core Scientific’s earlier Morgan Stanley-linked AI financing, TeraWulf’s Google–Anthropic backstop story, and IREN’s AI cloud expansion. Those posts map the same sector pivot from hash rate to contracted compute. This quarter’s Core Scientific package shows colocation already carrying most revenue, with mining still present and being repurposed when conditions allow — a softer endpoint than a hard “mining exit by year-end” claim that the company did not make.
What 485 MW of colocation billing changes on the ground
On the published numbers, Core Scientific’s GAAP story is now a colocation business with a large non-cash swing in net income from warrants. The $215.4 million colocation line and 485 MW billing base are the operational facts customers and lenders can track; the $1.18 billion net income figure is not a cash-earnings proxy for the quarter.
Implied average annualised colocation GAAP revenue above $700 million is Core Scientific’s way of translating megawatts into a run-rate headline. It sits next to sequential growth of about 60% in the colocation line, which is the sharper near-term signal that contracted HPC capacity is converting into recognised revenue.
The repurposing language leaves timing flexible: sites move when power, contracts and construction allow, not on a fixed calendar of the company’s invention. Billing megawatts and colocation revenue in the next quarter will matter more for the AI-hosting thesis than the warrant mark-to-market that dominated the bottom line this period. Sullivan’s sequential-growth quote points analysts at that colocation ramp rather than at the non-cash net income spike. Lenders tracking the AI conversion will still separate cash generation and CapEx from warrant fair-value noise when they read the same 8-K.
Sources
- Core Scientific Announces Third Quarter 2026 Results (IR, 5 November 2026)
- Core Scientific Form 8-K (5 November 2026)
Related stories
- Core Scientific Takes $500M Morgan Stanley Loan, Expandable to $1bn
- Google Backstops Financing for TeraWulf’s $19bn Anthropic Leases
- Perplexity Will Run Its AI Workloads on IREN’s Blackwell Ultra GPUs
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