Core Scientific Inc. a leading owner and operator of high-powered digital infrastructure for bitcoin mining and hosting services in North America, has signed a 12-year contract with CoreWeave, the AI Hyperscaler.
Core Scientific will deliver approximately 200 megawatts (MW) of infrastructure to host CoreWeave’s high-performance computing (HPC) operations. The company will modify multiple existing, owned sites to host CoreWeave’s NVIDIA GPUs, with site modifications expected to commence early in the second half of 2024 and achieve operational status in the first half of 2025.
Core Scientific’s agreements with CoreWeave complement its current business model by adding an expected stable, recurring, long-term, and high-margin revenue stream. Once the approximately 200 MW of HPC infrastructure is operational, the project is estimated to generate total cumulative revenue for Core Scientific of over $3.5 billion during the initial 12-year terms of the contracts, with an estimated average annual revenue of approximately $290 million.
The HPC hosting contracts will increase Core Scientific’s exposure to contracted, dollar-denominated revenue, enhancing earnings and shareholder value. The company’s total of 1.2 gigawatts of contracted power enables it to deliver nearly 500 MW of HPC power for alternative compute workloads based on geographic proximity to major cities and fiber lines.
​In April 2024, the company exceeded 20 exahash of energized self-mining hash rate after completing the scheduled deployment of S21 miners and temporarily energizing preceding generation miners at data centers where they can run financially.
Also Read: Core Scientific April 2024 Production and Operations Update
Core Scientific’s robust cash flow allowed the company to clear $19 million in debt linked to mechanics’ liens and kick-start the completion of 72 MW of infrastructure at its Denton, TX data center. This is part of the company’s plan to add 372 MW, over 20 exahash of hash rate, as part of its growth strategy.
