Core Scientific Expands Texas Data Center: Stock Skyrockets on $1.2B Agreement
Following the announcement of a data center expansion in Denton, Texas, shares of Core Scientific, which is listed on the Nasdaq, surged 12.29% in after-hours trading. Contractual revenue from the new deal with AI Hyperscaler CoreWeave is anticipated to reach $1.2 billion.
According to data from Google Finance, the cryptocurrency mining company‘s shares closed Wednesday at $10.02, up 2.66%, and then surged 12.29% to $11.25 during after-hours trading. The expansion is expected to increase Core’s Denton site’s essential IT load to 260 MW by adding 70 megawatts (MW).
By expanding our capacity in Denton, we’re building one of the largest GPU supercomputers in North America. We look forward to delivering even greater value for both our customers and shareholders.
Core Scientific CEO Adam Sullivan
Core Scientific’s Revenue Grows 1.6%—But Can It Overcome Huge Losses?
With CoreWeave, Core Scientific‘s total contracted HPC infrastructure would grow to around 590 MW across six locations. The agreement is expected to generate over $10 billion in total income over time. Core Scientific has contracted 1.3 gigawatts of power, of which 900 MW will be used for HPC hosting. The remaining 400 MW will be used to power the company’s bitcoin mining operations.
In 2024, Core Scientific reported $510.7 million in total revenue, a 1.6% increase from the previous year. Among them, $408.7 million came from self-mining cryptocurrency, $77.6 million from hosted cryptocurrency mining, and $24.4 million from hosting HPC programs. The company’s net deficit for 2023 was $246.5 million, but it increased to $1.3 billion last year.
Net loss increased by $1.1 billion driven primarily by a net $1.4 billion mark-to-market adjustment on our warrants and other contingent value rights comprising a $1.5 billion increase in the fair value of warrant liabilities,
the company
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