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Crypto News – Core Scientific and AI Partner in $3.5 Billion, 12-Year Deal

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Crypto News - Core Scientific and AI Partner in $3.5 Billion, 12-Year Deal

Core Scientific and AI Firm to Generate $3.5 Billion from 12-Year Deal

Crypto News- North American bitcoin mining and hosting services provider Core Scientific has announced a significant new venture: a series of 12-year contracts with AI hyperscaler CoreWeave. The Nasdaq-listed company anticipates this agreement will generate an average annual revenue of $290 million, culminating in a total of over $3.5 billion throughout the contract duration.

“Our expanding relationship with CoreWeave allows Core Scientific to diversify our business model and balance our portfolio between bitcoin mining and alternative compute hosting,” said Core Scientific CEO Adam Sullivan. “This positions us to maximize cash flow and minimize risk while maintaining our significant exposure to bitcoin’s upside potential.”

To support this new partnership, Core Scientific will provide 200 megawatts of infrastructure and upgrade its current facilities to meet CoreWeave’s operational needs. The company expects these sites to be operational by mid-2025. CoreWeave will cover all capital investments required to modify Core Scientific’s infrastructure, offsetting the cost with an estimated $300 million credit that will be deducted from Core Scientific’s monthly hosting fees.

Bitcoin Miners Turn to AI Following Halving Impact

This move comes as bitcoin mining companies, including Core Scientific, seek to expand their revenue streams following the April bitcoin halving, which reduced miner rewards by 50%. Other firms, such as Bit Digital and Hut 8, are also diversifying into AI.

Core Scientific reported a net income of $210.7 million in the first quarter of this year, a stark contrast to the net loss of $388,000 in the same period of 2023. In January, the company’s shares resumed trading on Nasdaq after a period of bankruptcy and restructuring.

FAQ

What is the nature of Core Scientific’s new venture?

Core Scientific has announced a significant new venture involving a series of 12-year contracts with AI hyperscaler CoreWeave. This partnership is expected to generate an average annual revenue of $290 million, totaling over $3.5 billion throughout the contract period.

How will this partnership benefit Core Scientific?

The partnership with CoreWeave allows Core Scientific to diversify its business model by balancing between bitcoin mining and alternative compute hosting. This diversification aims to maximize cash flow and minimize risk while maintaining exposure to bitcoin’s upside potential.

What infrastructure changes will Core Scientific implement for this partnership?

Core Scientific will provide 200 megawatts of infrastructure and upgrade its existing facilities to meet CoreWeave’s operational needs. The sites are expected to be operational by mid-2025.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News - Core Scientific and AI Partner in $3.5 Billion, 12-Year Deal

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