Core Scientific, a Bitcoin mining company, recently announced a significant deal with CoreWeave that will see an expansion of its high-performance computing (HPC) infrastructure. This agreement will allow CoreWeave to finance modifications to Core Scientific’s infrastructure, adding a total of 112 megawatts (MW) to their current capacity of 382 MW. The deal is expected to bring in an additional $2 billion in revenue over the next 12 years, on top of the $4.7 billion already projected from existing agreements.
Following this announcement, Core Scientific’s stock saw a substantial 18% increase, with shares trading at $9.74 as of the latest data from Yahoo Finance. This boost in stock value reflects investor confidence in the company’s growth potential and the strategic partnership with CoreWeave.
In addition to the infrastructure expansion, CoreWeave will have access to an additional 118 MW of infrastructure at other sites, potentially solidifying Core Scientific’s position as one of the leading data center providers in the US. CoreWeave will finance all necessary capital investments to upgrade Core Scientific’s infrastructure into cutting-edge, application-specific data centers tailored for dense HPC workloads. The agreement also includes options for two five-year renewal terms, ensuring a long-term partnership between the two companies.
Core Scientific’s CEO, Adam Sullivan, expressed optimism about the future of the company, highlighting the alignment of their strategy with the evolving energy density requirements for high-performance computing. The company’s focus on application-specific data centers aims to address these growing demands, setting them apart from traditional data center solutions.
In terms of Bitcoin production, Core Scientific reported mining 411 BTC in July alone, utilizing their fleet of owned miners which accounted for 81% of the total miners in their data centers. With a total hash rate of 20.1 EH/s, Core Scientific also provided hosting services and operational support for approximately 41,500 customer-owned BTC miners, making up the remaining 19% of the miners in their facilities as of July 31, 2024.
Looking ahead, Core Scientific is poised for further growth and innovation, with plans to integrate Block’s new 3-nanometer ASIC chip next year and expand their HPC hosting capabilities. The company’s strategic partnerships and focus on cutting-edge infrastructure position them for success in the evolving landscape of Bitcoin mining and high-performance computing.