Bitcoin Miner Core Scientific Partners With AI Firm, Forecasts $3.5 Billion in Revenue
Core Scientific, a top player in North America’s digital infrastructure industry, has announced a strategic partnership involving a series of long-term contracts extending over 12 years with CoreWeave, an AI Hyperscaler.
Under the agreement, Core Scientific will supply approximately 200 MW of infrastructure to support CoreWeave’s high-performance computing (HPC) operations.
Core Scientific Ventures into AI
The partnership is a significant milestone for Core Scientific as it enters the AI data center space. The company is looking to seize growth opportunities in AI computing while maintaining its strong position in Bitcoin mining.
Adam Sullivan, the CEO of Core Scientific, is optimistic about the transformative potential of this collaboration. He highlights the growing demand for high-power sites and Core Scientific’s ability to meet customer needs efficiently. Their focus on quick and reliable solutions aims to reduce the time needed for power compared to new data center projects.
Beyond the initial 12-year contracts, the agreement with CoreWeave also includes provisions for renewal terms and further expansion. These provisions position Core Scientific as a leading data center operator in the United States, with the potential to become one of the largest in the industry. This partnership is expected to broaden Core Scientific’s revenue sources and increase its earnings.
The HPC infrastructure is forecasted to generate over $3.5 billion in revenue during the initial contract period, complementing Core Scientific’s existing Bitcoin mining business. Core Scientific plans to shift some of its Bitcoin mining capacity towards this expansion to support business continuity and growth.
Core Scientific Expands Infrastructure
In January, Core Scientific’s shares resumed trading on Nasdaq following its bankruptcy and restructuring.
The company then surpassed 20 exahash of energized self-mining hash rate in April 2024. This followed the deployment of S21 miners and the temporary energization of preceding generation miners at data centers capable of supporting their operations financially.
An influx of cash flow enabled Core Scientific to settle $19 million in debt associated with mechanics’ liens and begin completing 72 MW of infrastructure at its Denton, TX, data center. This is part of the company’s broader plan to add 372 MW, contributing to over 20 exahash of hash rate, as part of its growth strategy.
Since April’s Bitcoin halving, which reduced miner rewards by 50%, Bitcoin mining companies like Core Scientific have actively sought to expand their revenues. In line with this trend, other mining firms such as Bit Digital and Hut 8 have diversified their revenue streams into AI.
Notably, Core Scientific reported a net income of $210.7 million in the first quarter of this year, a surge compared to a net loss of $388,000 in the same period of 2023.
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