Core Scientific signs 12-year deal with AI firm, projects $3.5 billion total revenue

North American bitcoin mining and hosting services provider Core Scientific announced today that it signed a series of 12-year contracts with AI Hyperscaler CoreWeave. 

The Nasdaq-listed company expects the agreement to generate approximately $290 million worth of average annual revenue, a total cumulative revenue of over $3.5 billion over the 12-year period.

“Our expanding relationship with CoreWeave creates a pathway for Core Scientific to diversify our business model and balance our portfolio between bitcoin mining and alternative compute hosting, positioning us to maximize cash flow and minimize risk while maintaining our significant exposure to bitcoin’s upside potential,” Core Scientific CEO Adam Sullivan said in the release.

Core Scientific plans to supply 200 megawatts of infrastructure and revamp its existing sites to accommodate CoreWeave’s operations. The mining company said it expects to have the sites prepared for operation by the first half of 2025.

Under the contract, CoreWeave will fund all the capital investments needed to modify Core Scientific's existing infrastructure. To offset the cost, CoreWeave plans to credit Core Scientific an estimated $300 million, which will be gradually deducted from their monthly hosting fees. 

Bitcoin mining companies including Core Scientific have been seeking to expand their revenues since April’s bitcoin halving , which reduced miner rewards by 50%. Other mining firms including Bit Digital and Hut 8 were also seen diversifying their revenue streams into AI.

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