Core Scientific Exits Bitcoin Mining for AI Hosting

Welcome back to The Warmup.

Good morning to everyone holding the AI trade and the BTC Barbell Strategy portfolio.

Here’s what we’re watching:

• Market Snapshot

• Core Scientific Exits Bitcoin Mining for AI Hosting

• NVDA Breakdown Play

• Bitcoin Erases Election Gains After AI Selloff

Market: Equities rally while crypto remains under pressure. The VIX drops nearly 8%, signaling easing market volatility.

Core Scientific Exits Bitcoin Mining for AI Hosting

What’s going on:

Core Scientific plans to exit Bitcoin mining by the end of 2026 and become a pure-play AI data center operator. The shift is already underway: Q3 colocation revenue reached $215M, compared with just $17.5M from Bitcoin mining.

The reason is simple: AI companies pay more for the same power and infrastructure that miners use to run ASICs.

What it means:

Core Scientific isn't alone. More miners are moving toward AI hosting, potentially reducing Bitcoin hashrate and concentrating mining among operators with the cheapest electricity.

AI is becoming a more profitable use of mining infrastructure, but the trade-off is fewer operators securing the Bitcoin network.

NVDA Breakdown Play

What’s going on:

NVDA bounced 6.4% to $193.20 after a sharp selloff, but remains below its rising trendline and 200-day SMA ($204.71). The broader structure remains bearish.

Key levels we’re watching:

• Resistance: $200–$205 → 200-day SMA

• Major resistance: $214 → broken trendline

• Support: $187 → recent low

• Downside target: $180 → next key support

Directional Bias: Bearish

The bounce is encouraging, but NVDA needs to reclaim $204.71 to signal a meaningful recovery.

What we’re waiting for:

• Failure to reclaim the 200-day SMA

• Selling pressure returning below $200

• A break below $187 to confirm further downside

Bitcoin Gives Back Post-Midterm Gains

What’s going on:

Bitcoin fell below $76,000, wiping out its post-midterm gains as a Nasdaq selloff triggered broader risk-off selling.

More than $1B in leveraged crypto positions were liquidated in 24 hours, mostly longs, while U.S. spot crypto ETFs saw over $500M in outflows on Thursday.

What it means:

The initial election optimism didn't last once tech stocks turned lower. Bitcoin continues to trade like a high-beta risk asset, with leverage making selloffs worse.

The key thing to watch is whether ETF inflows return or institutional demand stays weak.

• Crypto ETFs see over half a billion dollars in outflows amid post-midterm market slide

• Nigeria's central bank introduces stablecoin licensing rules, bans algorithmic versions

• Zcash's major network upgrade NU7 goes live on mainnet, cutting block time by threefold

Bitcoin's post-election bounce is gone, with price near $76,000 after $1B in liquidations and more than $500M in ETF outflows. A Nasdaq selloff driven by AI spending concerns added pressure.

The bigger story is how capital is moving. Miners are shifting power capacity to AI hosting, while institutions are pulling money from crypto ETFs. These aren't just short-term market reactions; they're changes in how capital gets allocated.

For beginners, the takeaway is to separate short-term volatility from structural shifts. Liquidations can clear in a day. Changes in institutional flows and mining economics take much longer.

— The Warmup Team

Always do your own research. This newsletter is supplemental material to help educate readers as they make their own decisions. Projects mentioned here are provided to give a potential early-mover advantage.