Core Scientific, a key player in North America’s digital infrastructure industry, has announced a strategic partnership with CoreWeave, an AI Hyperscaler, involving long-term contracts spanning over 12 years. The agreement entails Core Scientific supplying around 200 MW of infrastructure to support CoreWeave’s high-performance computing (HPC) operations.
This marks a significant milestone for Core Scientific as it ventures into the AI data center space while continuing to excel in Bitcoin mining. The CEO, Adam Sullivan, is optimistic about the collaboration’s transformative potential, emphasizing the increasing demand for high-power sites and Core Scientific’s efficiency in meeting customer needs with quick and reliable solutions.
Beyond the initial 12-year contracts, the agreement with CoreWeave includes provisions for renewal terms and further expansion, positioning Core Scientific as a leading data center operator in the United States. This partnership is expected to broaden Core Scientific’s revenue sources and boost its earnings, with the HPC infrastructure forecasted to generate over $3.5 billion in revenue during the initial contract period.
Following its bankruptcy and restructuring, Core Scientific’s shares resumed trading on Nasdaq in January. The company achieved over 20 exahash of energized self-mining hash rate in April 2024, supported by the deployment of S21 miners and the temporary energization of previous generation miners. With an influx of cash flow, Core Scientific settled debt, began completing infrastructure at its Denton, TX data center, and planned to add 372 MW of infrastructure to support over 20 exahash of hash rate as part of its growth strategy.
In response to the Bitcoin halving in April, which reduced miner rewards by 50%, Bitcoin mining companies like Core Scientific have been seeking to expand their revenues. Other mining firms, such as Bit Digital and Hut 8, have also diversified their revenue streams into AI. Core Scientific reported a significant surge in net income to $210.7 million in the first quarter of this year compared to a net loss in the same period of 2023.