Bitcoin mining company Core Scientific is set to generate an estimated $8.7 billion in revenue over the next 12 years through an expanded hosting agreement with CoreWeave, as per an announcement made on Oct. 22.
CoreWeave has exercised its final option to secure an additional 120 megawatts (MW) of hosting capacity for its High-Performance Computing (HPC) operations, solidifying the partnership between the two entities.
The extended contract is projected to bring in an extra $2 billion in revenue over the 12-year term, adding to the $6.7 billion already expected from previous contracts with CoreWeave. This brings the total anticipated revenue from the agreement to $8.7 billion.
To accommodate the additional 120 MW of “critical IT load” required for hosting CoreWeave’s NVIDIA Graphics Processing Units (GPUs), Core Scientific plans to modify its infrastructure in the latter half of 2025. The critical IT load includes power for essential systems like servers and communication switches, excluding ancillary equipment such as cooling systems.
CoreWeave will cover the $180 million capital investment necessary for these upgrades, which will be offset against hosting fees. The contract also allows for two potential five-year renewal periods.
Operations are expected to commence in the second half of 2026 once the upgrades are completed. At that point, Core Scientific will be providing 500 MW of HPC infrastructure to CoreWeave, solidifying its position as one of the largest publicly traded data center operators in the United States.
CEO of Core Scientific, Adam Sullivan, emphasized the significance of the partnership, stating that it aligns with the company’s strategy to allocate 500 MW of critical IT load to support high-performance computing. Sullivan stated:
“There is significant demand for infrastructure to support next-generation compute workloads. Our contracts with CoreWeave represent the foundation for Core Scientific’s evolution into a leading data center business ideally positioned to meet that demand.”
Sullivan also mentioned that the company is actively increasing power capacity at its existing data centers and exploring new sites to expand its HPC hosting capabilities.
Following the announcement, Core Scientific’s stock (CORZ) saw a 5.1% surge to $13.48, according to data from Yahoo Finance.
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