Core Scientific Signs $3.5 Billion Contract with AI Hyperscaler CoreWeave

• Core Scientific signed 12-year contracts with CoreWeave, expecting $3.5 billion revenue.
• CEO aims to balance bitcoin mining and alternative hosting for cash flow.
• Core Scientific to provide 200MW infrastructure for CoreWeave by 2025.
• CoreWeave funds infrastructure modifications, credits $300 million to Core Scientific.
• Bitcoin mining firms diversify into AI to offset reduced rewards post-halving.
• Core Scientific's net income rose to $210.7 million in Q1 2023.

Summary :
North American bitcoin mining and hosting services provider Core Scientific has signed a series of 12-year contracts with AI Hyperscaler CoreWeave. The agreement is expected to generate approximately $290 million worth of average annual revenue, totaling over $3.5 billion over the 12-year period. Core Scientific plans to supply 200 megawatts of infrastructure and revamp its existing sites to accommodate CoreWeave's operations. Under the contract, CoreWeave will fund the necessary capital investments, with Core Scientific receiving an estimated $300 million credit gradually deducted from their monthly hosting fees. This move comes as bitcoin mining companies, including Core Scientific, seek to diversify their revenue streams following the reduction in miner rewards after April's bitcoin halving. Core Scientific reported a net income of $210.7 million in Q1 2023, compared to a net loss of $388,000 in the same period last year. The company's shares resumed trading on Nasdaq in January after bankruptcy and restructuring.

Sources :

- TheBlock