Core Scientific, North America's leading provider of Bitcoin mining and hosting services, today announced that it has signed a series of significant 12-year agreements with AI hyperscaler CoreWeave.
Core Scientific Signed a 12-Year Agreement with Artificial Intelligence Company
The Nasdaq-listed company anticipates these deals will generate an estimated $3.5 billion in total cumulative revenue over the life of the agreements, with annual revenue averaging $290 million.
Core Scientific CEO Adam Sullivan emphasized the strategic importance of this agreement and said:
“Our expanding relationship with CoreWeave creates a way for Core Scientific to diversify our business model and balance our portfolio between Bitcoin mining and alternative computing hosting.
“This gives us significant exposure to Bitcoin's upside potential while positioning us to maximize cash flow and minimize risk.”
Under the agreement, Core Scientific will provide 200 megawatts of infrastructure and renovate its existing sites to accommodate CoreWeave's operations.
The mining company aims to have these facilities operational by the first half of 2025. CoreWeave will fund all capital investments necessary to replace Core Scientific's existing infrastructure.
To offset these costs, CoreWeave plans to loan Core Scientific an estimated $300 million, which will be deducted gradually from monthly hosting fees.
Bitcoin mining companies, including Core Scientific, are exploring ways to expand their revenue streams following April's Bitcoin halving, which slashed miner rewards by 50%.
Other major mining companies such as Bit Digital and Hut 8 are also turning to artificial intelligence to increase their revenues.
*This is not investment advice.