AUSTIN, Texas - Core Scientific, Inc. (NASDAQ:CORZ), a prominent player in bitcoin mining and high-value compute infrastructure, has announced a multi-year contract with CoreWeave, a leading specialized GPU cloud provider. The deal, which could generate over $100 million in revenue, involves Core Scientific supplying up to 16 megawatts (MW) of data center capacity to CoreWeave.
Under the agreement, Core Scientific will utilize its newly leased Austin, TX tier 3 data center, previously occupied by Hewlett Packard, to host CoreWeave's infrastructure. This strategic move is set to diversify Core Scientific's revenue streams, expanding its hosting services to include high-performance computing (HPC) alongside its established bitcoin mining operations.
CoreWeave, known for its large-scale GPU compute resources, has praised the partnership, highlighting Core Scientific's proven track record of responsive service, high uptime data centers, and professional conduct. Michael Intrator, CEO of CoreWeave, emphasized the shared commitment to accelerating innovation in AI and HPC applications.
Adam Sullivan, CEO of Core Scientific, expressed confidence in meeting CoreWeave's immediate needs and in the potential to further their relationship as Core Scientific's infrastructure grows. He noted the company's ability to leverage its asset base to maximize revenue and earnings, positioning Core Scientific as a low-cost bitcoin miner with a diversified business model.
Core Scientific has hosted CoreWeave's GPU processing hardware since 2019 through 2022 and currently operates over 300 MW of infrastructure. The company's growth plan includes a significant expansion of bitcoin mining infrastructure at its Texas data centers.
The company's self-mining business has reportedly produced more bitcoin than any other listed North American bitcoin miner for three consecutive years and boasts high hash rate utilization compared to its peers.
This contract is expected to be accretive to Core Scientific's 2024 earnings, reflecting the company's optimistic outlook on its operational and financial performance.
The information in this article is based on a press release statement from Core Scientific, Inc.
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