Core Scientific has announced its plans to continue selling Bitcoin as part of a strategic transition towards artificial intelligence (AI) and high-performance computing (HPC). In an SEC filing accompanying its fourth-quarter earnings results, the Austin-based firm revealed its intent to significantly reduce its Bitcoin holdings in the coming months, driven by rising capital expenditures associated with its data center expansion.
The company indicated that “substantially all” of its Bitcoin holdings would be liquidated, with most of these sales expected to occur in the first quarter. However, the pace of these sales will depend on market conditions. Currently, Core Scientific holds less than 1,000 Bitcoin and recently sold 1,900 Bitcoin in January for $175 million at rates above current market levels.
This move reflects a broader trend within the U.S. Bitcoin mining sector, where several companies are pivoting from Bitcoin mining to capitalize on the increasing demand for AI-related resources. For instance, Bitcoin miner Cango recently sold 4,451 Bitcoin to support its transition towards AI, while Bitfarms has rebranded itself as Keel Infrastructure, focusing exclusively on HPC rather than self-mining Bitcoin.
During the earnings call, Core Scientific’s Chief Financial Officer, Jim Nygar, shared insights into the company’s shifting focus, while CEO Adam Sullivan elaborated on the transformation of its Pecos, Texas facility from Bitcoin mining to colocation services. This facility is designed to support a substantial 430 megawatts of gross power capacity. Sullivan emphasized that the company’s strategy remains intact, with the goal of dedicating every megawatt in its portfolio to colocation services within the next three years.
If successful, this transition would mark the end of Core Scientific’s self-mining operations, which have historically been a significant revenue stream for the company. In the fourth quarter, the company earned $41.1 million from mining Bitcoin for itself, contrasting with $31.3 million from colocation services, in addition to $6.5 million from hosting Bitcoin mining activities for customers.
