Core Scientific’s shares soar 18% after additional $2 billion CoreWeave agreement

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Core Scientific’s shares soar 18% after additional $2 billion CoreWeave agreement
Blockonomics



Bitcoin miner Core Scientific will expand its high-performance computing (HPC) infrastructure by 112 megawatts (MW) to a total of 382 MW to host CoreWeave’s NVIDIA graphics processing units (GPUs), according to an Aug. 6 statement.

The company stated that this deal will add $2 billion in revenue over 12 years, on top of the $4.7 billion expected from existing agreements.

Core Scientifc’s shares rose more than 18% following the announcement and were trading at $9.74 as of press time, based on Yahoo Finance data.

Additional infrastructure

Core Scientific stated that CoreWeave can access another 118 MW of infrastructure at other sites. If the contract proceeds, Core Scientific could become one of the largest data center providers in the US.

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Meanwhile, CoreWeave will finance all capital investments needed to transform Core Scientific’s infrastructure into state-of-the-art, application-specific data centers tailored for dense HPC. The agreement also includes options for two five-year renewal terms.

These modifications are slated to begin in the latter half of 2024, with operations expected to start in early 2026.

Core Scientific CEO Adam Sullivan stated:

“The latest contract also validates that our strategy for developing application-specific data centers aligns with the increasing energy density requirements for high-performance computing that legacy data centers do not typically satisfy.”

Bitcoin production

Core Scientific mined 411 BTC in July from its fleet of owned miners, according to an Aug. 6 statement.

The company stated that it operated around 172,000 BTC miners, accounting for about 81% of the miners in its data centers. This fleet delivered a total hash rate of 20.1 EH/s.

Additionally, Core Scientific provided hosting services and operational support for approximately 41,500 customer-owned BTC miners, making up about 19% of the total miners in its data centers as of July 31, 2024.

Meanwhile, Sullivan said he is bullish about the company’s business prospects, pointing out the planned integration of Block’s new 3-nanometer ASIC chip for next year and its thriving HPC business.

Sullivan added:

“The future of our bitcoin mining business is bright as we migrate miners to dedicated sites and prepare to modify a significant portion of our high-power infrastructure for HPC hosting,”

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