Core Scientific Terminates Bitcoin Mining Deal, Hosting Revenue Surges 1192%

Core Scientific paid $41.9M to cancel Block mining contract, halting new hardware buys. Hosting revenue hit $137M, driving strategic pivot to AI infrastructure.

Woofun AI reports that Core Scientific disclosed in its Q2 regulatory filing a $41.9 million payment to terminate the Bitcoin mining machine contract with Block and its Proto division, resulting in equivalent losses. The agreement, announced in July 2024 for 3nm chips yielding ~15 EH/s, is canceled along with future deliveries. The company confirmed it will cease investing in new mining hardware, relying instead on cash flow from existing assets while selling or retiring machines as needed.

Woofun AI data shows hosting revenue jumped to $137 million in Q2, up from $10.6 million year-over-year, comprising 83% of total revenue. Conversely, self-mining revenue dropped 66% to $21.5 million (13% of total), with Bitcoin production down 53% annually. Core Scientific stated it is continuing to shift power allocation from mining equipment to high-density computing systems such as GPUs.