Bitcoin Miner Core Scientific Partners With AI Firm, Forecasts $3.5 Billion in Revenue

Core Scientific, a major player in the digital infrastructure industry in North America, announced a strategic partnership that includes a series of long-term contracts spanning 12 years with CoreWeave, an AI hyperscaler company.

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

Basic scientific projects in artificial intelligence

This partnership marks an important milestone for Core Scientific as it enters the AI ​​data center space. The company looks forward to seizing growth opportunities in AI computing while maintaining its strong position in Bitcoin mining.

Adam Sullivan, CEO of Core Scientific Upbeat About the transformative potential of this collaboration. It highlights the growing demand for high-power sites and Core Scientific's ability to efficiently meet customer needs. Their focus on fast and reliable solutions aims to reduce the turnaround time compared to new data center projects.

In addition to the initial 12-year contracts, the agreement with CoreWeave also includes provisions for renewal terms and further expansion. These rulings 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 expand Core Scientific's revenue streams and increase its profits.

The high-performance computing (HPC) infrastructure is expected to generate revenues of more than $3.5 billion during the initial contract period, complementing Core Scientific's existing Bitcoin mining business. Core Scientific plans to shift some of its Bitcoin mining capacity toward this expansion to support business continuity and growth.

Basic science expands infrastructure

In January, Core Scientific shares resumed trading on the Nasdaq Stock Exchange following its bankruptcy and restructuring.

The company then surpassed 20 exahashes of active self-mining hashrate in April 2024. This followed the deployment of S21 miners and the temporary activation of previous generation miners in data centers capable of financially supporting their operations.

The infusion of cash flow enabled Core Scientific to settle $19 million of debt associated with mechanics' liens and begin completion of 72 megawatts of infrastructure at its data center in Denton, TX. This is part of the company's broader plan to add 372MW, contributing more than 20 exahashes of hash rate, as part of its growth strategy.

Since the Bitcoin halving in April, which reduced miner rewards by 50%, Bitcoin mining companies like Core Scientific have actively sought to increase their revenues. In line with this trend, other mining companies such as Bit Digital and Hut 8 have diversified their revenue streams towards artificial intelligence.

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