Summary
- Core Scientific’s $2 billion deal with CoreWeave boosted its shares by 17% on August 6.
- The miner expects $6.7 billion in revenue by Q1 2026.
On August 6, the shares of Bitcoin miner Core Scientific spiked by 17%, outperforming other crypto stocks. This came right after the company signed an extension of its contract with CoreWeave for high-performance computing.
In a recent statement, the miner said that it has exercised its option from a previous deal to host 112 MW of additional GPUs for AI Hyperscaler firm CoreWeave.
The new extension to the contract is expected to add $2 billion of additional revenue, bringing the total to $6.7 billion starting in Q1 2026.
CoreWeave will bear the cost of all capital investments required to get the existing mining infrastructure of Core Scientific ready for HPC.
Core Scientific’s CEO, Adam Sullivan said in a recent statement that they have contracted with CoreWeave for a total of 382 MW of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the ability of their team to deliver it.
He also said that the new contract ensures that the firm’s strategy of developing application-specific data centers aligns with the increasing energy density requirements for high-performance computing that legacy data centers are not able to satisfy.
Options to Add Further Capacity
The miner said previously that it would offer hosting infrastructure for 200 MW worth of GPUs for CoreWeave, together with options to add more capacity.
As a result, the two c companies expanded the deal by 70 MW, making this new deal a third extension to the initial contract.
The original deal brought the spotlight on the mining industry again after seeing low-profit margins after the 2024 Bitcoin halving that took place in April.
The HPC and AI companies need high-energy data centers, sites, and infrastructure which are expensive and time-consuming as well.
Bitcoin miners already have power contracts and the necessary infrastructure to support the high needs, and this makes them good candidates to host HPC and AI-related machines.
Bitcoin miners are shifting their power capacity to AI as per a report released by Bernstein last month. It’s expected that 20% of the miners’ capacity will shift to artificial intelligence by 2027.