Bitcoin miners have spent years running warehouses full of power-hungry machines that compete to secure the network and earn new coins. Now two of the biggest names in the business are pointi
Bitcoin miners have spent years running warehouses full of power-hungry machines that compete to secure the network and earn new coins.
Now two of the biggest names in the business are pointing that power somewhere else.
Core Scientific and IREN, both listed on Nasdaq, reported results on Nov. 5 for the quarter ending Sept. 30.
Both showed revenue from Bitcoin mining shrinking fast while income from artificial intelligence (AI) customers surged.
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At Core Scientific, revenue from mining Bitcoin for itself fell to $12.3 million, down from $57.4 million a year earlier.
Hosted mining, where it runs machines for other miners, brought in $5.2 million, down from $8.7 million.
Colocation took over. That is the business of renting out data center space and power, in this case for AI workloads.
Colocation revenue jumped to $215.4 million from $15 million a year ago. Total revenue rose to $232.9 million.
CEO Adam Sullivan said the company’s “execution at scale is translating into results.”
The company says it is repurposing its remaining mining facilities for this colocation business “as circumstances allow.”
IREN’s numbers tell a similar story. Its Bitcoin mining revenue fell to $28 million from $67 million in the previous quarter.
AI cloud revenue, which comes from renting computing power to AI developers, climbed to $200 million from $71 million.
Microsoft is now among its customers. Co-founder and co-CEO Daniel Roberts said AI cloud revenue “nearly tripled” after its Horizon 1 facility went into service for the tech giant.
IREN says its target of more than $4 billion in annualized AI revenue is fully contracted and is now aimed for January 2027.
The results landed during a heavy selloff in tech. Investors are reassessing AI valuations and spending, and that has dragged crypto down too.
Nearly $1.08 billion in crypto positions were liquidated over 24 hours, according to market data.
Bitcoin price at press time. Source: DecibelAt press time, Bitcoin traded near $76,150, down about 5.3% over 24 hours, according to Decibel data.
The move adds pressure on miners whose margins already depend on the coin’s price. It also tests the AI demand both companies are now leaning on.
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