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Bitcoin miner Core Scientific teams up with AI firm, predicts $3.5 billion in revenue

by xyonent
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Core Scientific, a leading North American digital infrastructure company, has announced a strategic partnership with AI hyperscaler CoreWeave that includes a series of long-term agreements spanning 12 years.

Under the agreement, Core Scientific will supply approximately 200 MW of infrastructure to support CoreWeave’s high-performance computing (HPC) operations.

Core Scientific Gets Into AI

The partnership marks an important milestone for Core Scientific’s entry into the AI ​​data center space as the company aims to capture growth opportunities in AI computing while maintaining its strong position in Bitcoin mining.

Core Scientific CEO Adam Sullivan said: Optimistic Speaking about the transformative potential of this collaboration, he highlights the growing demand for high-power sites and Core Scientific’s ability to efficiently meet customer needs. By focusing on fast and reliable solutions, the company aims to reduce the time needed to power compared to new data center projects.

The agreement with CoreWeave includes an initial 12-year term, plus renewal and further expansion provisions that will position Core Scientific as a leading data center operator in the United States and potentially one of the largest in the industry. The partnership is expected to broaden Core Scientific’s revenue streams and increase earnings.

The HPC infrastructure is expected to generate more than $3.5 billion in revenue over the initial contract period and will complement Core Scientific’s existing bitcoin mining operations, with Core Scientific planning to shift a portion of its bitcoin mining capacity to this expansion to support business continuity and growth.

Core Scientific Expands Infrastructure

In January, Core Scientific shares resumed trading on the Nasdaq after emerging from bankruptcy and reorganization.

The company has since exceeded 20 exahash self-mining hashrate, activated in April 2024. This follows the introduction of the S21 miner and the temporary activation of older generation miners in data centers that can economically support their operations.

The influx of cash flow has enabled Core Scientific to clear $19 million in debt related to contractor liens and begin completing 72 MW of infrastructure at its data center in Denton, Texas, part of the company’s broader plans to add 372 MW and reach a hash rate of more than 20 exahash as part of its growth strategy.

Bitcoin mining companies such as Core Scientific have been actively seeking to boost revenue since the Bitcoin halving in April, which reduced miner rewards by 50%. Following this trend, other mining companies such as Bit Digital and Hut 8 have also diversified their revenue streams into AI.

Notably, Core Scientific reported net income of $210.7 million in the first quarter of this year, a sharp increase compared to a net loss of $388,000 in the same period in 2023.

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