Core Scientific Q3 Colocation Revenue Hits $215M Amid $985M Capex

Core Scientific reported $215.4 million in colocation revenue for the third quarter of 2026, a figure nearly 60% higher than the $136.7 million recorded in the second quarter. The company’s total quarterly revenue reached $232.9 million, marking a significant shift in its revenue composition away from traditional Bitcoin mining toward contracted infrastructure services.

Capacity and Revenue Growth

As of September 30, Core Scientific stated it was billing for 485 megawatts of capacity. This billing level represents more than $700 million in average annualized colocation GAAP revenue. The company described this metric as a shift from measuring hashrate to measuring contracted power and computing infrastructure delivered to tenants.

Colocation revenue in the third quarter was substantially higher than the $15 million reported in the same period a year earlier. The company noted that mining revenue remains dependent on volatile factors including Bitcoin price, network difficulty, block rewards, and electricity costs. In contrast, colocation revenue is derived from long-term contracts for infrastructure delivery, which may offer more predictable income streams after facility delivery, though it requires significant capital commitment.

Financial Performance and Capital Expenditure

Core Scientific reported approximately $1.18 billion in quarterly net income. The company clarified that this result benefited from a non-cash change in the fair value of warrants, meaning the headline profit figure does not directly reflect recurring cash generated from data center operations. Adjusted EBITDA was $133.6 million, more than three times the previous quarter’s $41.1 million.

Capital expenditure reached $985.1 million in the quarter. The company is approaching full delivery under its first colocation agreement and is currently constructing capacity under a second agreement across five campuses. These construction efforts and billing ramps are central to the final financial outcome, as the rapidly growing operating business continues to consume substantial cash to add facilities needed for future contracted revenue.

The earnings release, dated November 5, highlights the transition of an operator historically known for Bitcoin mining into a business focused on contracted AI infrastructure. While the revenue growth is measurable, the financial results underscore the heavy capital requirements associated with scaling data center capacity.