Core Scientific, North America's leading provider of Bitcoin mining and hosting services, announced that it has signed a series of significant 12-year contracts with artificial intelligence hyperscaler CoreWeave. These agreements are expected to generate cumulative revenues totaling $3.5 billion over the life of the contracts, with average annual revenues of $290 million. Adam Sullivan, CEO of Core Scientific, highlighted the strategic importance of this agreement, noting that their expanding relationship with CoreWeave allows them to diversify their business model and balance their portfolio between Bitcoin mining and alternative compute hosting.
Under the agreement, Core Scientific will upgrade its existing sites to accommodate CoreWeave's operations, providing 200 megawatts of infrastructure. These facilities are scheduled to be operational by the first half of 2025. CoreWeave will fund all capital investments required to replace Core Scientific's existing infrastructure and will loan Core Scientific an estimated $300 million to offset these costs, which will be gradually deducted from monthly hosting fees.
Bitcoin mining companies are exploring ways to expand their revenue streams following the Bitcoin halving in April, which reduced miner rewards by 50%. Core Scientific is looking to boost revenues by turning to artificial intelligence, while other major mining firms such as Bit Digital and Hut 8 are pursuing similar strategies.
