Core Scientific’s Impressive Revenue Projections Following Expansion
Core Scientific, a prominent name in Bitcoin mining, is anticipating a remarkable revenue generation of approximately $8.7 billion over the next 12 years. This forecast comes on the heels of an expanded hosting agreement with CoreWeave, as disclosed in a statement on October 22.
Expansion of Hosting Capacity
The latest contract update reveals that CoreWeave has activated its final option to secure an additional 120 megawatts (MW) of hosting capacity, intended for High-Performance Computing (HPC) operations.
Financial Impact of the New Agreement
- The extension of the contract is projected to bring in an additional $2 billion over its 12-year duration.
- This new revenue will be added to the previously estimated $6.7 billion from earlier agreements.
- In total, Core Scientific expects a cumulative revenue of $8.7 billion from this strategic partnership.
Infrastructure Upgrades Planned for 2025
To meet the requirements of the additional 120 MW critical IT load for CoreWeave’s NVIDIA Graphics Processing Units (GPUs), Core Scientific plans to upgrade its infrastructure in the second half of 2025. This critical IT load will include the necessary power for:
- Servers
- Data storage solutions
- Communication switches
- Other essential systems
Notably, ancillary equipment such as air conditioning and cooling systems is not included in this configuration.
Investment and Future Operations
CoreWeave is set to cover the $180 million capital investment required for these upgrades, which will be credited against hosting fees. The agreement also accommodates two potential five-year renewal options.
Once the upgrades are completed, operations are expected to commence in the latter half of 2026. At that point, Core Scientific will provide a substantial 500 MW of HPC infrastructure to CoreWeave, reinforcing its status as one of the largest publicly traded data center operators in the nation.
Strategic Vision for Future Growth
Core Scientific’s CEO, Adam Sullivan, underscored the importance of this partnership, emphasizing how it aligns with the company’s goal of designating 500 MW of critical IT load to bolster high-performance computing. He noted:
“The demand for infrastructure that can support next-generation computing workloads is substantial. Our agreements with CoreWeave form the backbone of Core Scientific’s transformation into a top-tier data center enterprise, outfitted to fulfill that demand.”
Sullivan also indicated that Core Scientific is focused on expanding the power capacity at its current data centers, while exploring new locations for enhancing its HPC hosting abilities.
Stock Market Reaction
In response to this announcement, Core Scientific’s stock (CORZ) experienced a notable increase of 5.1%, climbing to $13.48, according to Yahoo Finance data.
