Core Scientific has officially paid nearly $42 million to terminate its bitcoin mining contract with Block and its Proto unit. This move marks a clear shift from bitcoin mining toward focusing on AI infrastructure. The company disclosed the settlement and contract cancellation in its recent Q2 filing, signaling the winding down of its mining commitments.
Originally signed in mid-2024, the contract with Block’s Proto division was set to supply cutting-edge 3-nanometer mining chips delivering roughly 15 exahashes per second. It was one of the largest mining chip deals announced in terms of hashrate. Now, by scrapping this order, Core Scientific is stepping away from any major hashrate expansion plans.
The shift is evident in the company’s latest earnings. Colocation revenue jumped from $10.6 million last year to $136.7 million this quarter, making up 83% of total revenue. Meanwhile, self-mining income tumbled by two-thirds to $21.5 million, a sharp drop from $62.4 million a year earlier. Bitcoin production also slipped 53% year over year, partly due to reallocating power from mining rigs to data centers optimized for GPUs and other high-density computing tasks.
Core Scientific now operates nearly 400 megawatts of billable colocation capacity, with plans to reach 437 megawatts soon. The company intends to monetize its existing mining fleet while gradually converting or retiring hardware as the AI-focused business scales. This is a stark contrast to its earlier strategy of aggressive mining growth.
This development fits within broader trends where bitcoin mining firms are recalibrating amid market pressures. For contrast, bitcoin ETFs have recently seen significant outflows, reflecting changing investor sentiment. Core Scientific’s pivot highlights how lucrative AI infrastructure is becoming compared to traditional mining operations.
This article is for informational purposes and does not constitute financial advice.
