Bitcoin miner Core Scientific shares surges 17% after another contract with CoreWeave

Bitcoin miner Core Scientific excited investors after signing an additional contract with CoreWeave. The miner’s shares surged 17% on Tuesday, leading other publicly listed crypto-oriented companies.

US-based Bitcoin miner Core Scientific saw its shares surge by double digits after announcing an additional computing contract. The miner signed a new contract with AI Hyperscale CoreWeave worth $2 billion that will run for 12 years. 

The terms of the contract will see the miner improve its mining infrastructure to deliver approximately 112 incremental MW to accommodate GPUs from the AI Hyperscale company. These modifications will begin before the end of 2024 to facilitate the commencement of operations in the first half of 2026. The HPC hosting contract will expand the miner’s cumulative revenue to $6.7 billion.

CoreWeave signs another contract with Core Scientific

The contract illustrated that Core Scientific had contracted CoreWeave for 382 megawatts of mining infrastructure. According to the announcement, CoreWeave will settle all associated expansion costs needed to establish the infrastructure for the imminent high-performance computing (HPC) operations.

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it.”

Adam Sullivan, Core Scientific’s CEO

The two entities require extensive energy and data centers to run. Bitcoin miners already have established power infrastructure and supporting contracts that artificial intelligence companies like CoreWeave require. Building infrastructure or using legacy data centers would be costly for AI companies. 

As a result, CoreWeave partnered with the Bitcoin miner for a symbiotic relationship that will benefit the two companies economically. Core Scientific stated that it is possible to extend the contract to host 118 MW worth of more machines for HPC computing to take advantage of the growing demand. 

Core Scientific and CoreWeave collaborated in June

In a separate contract signed by the two parties in June, Core Scientific was to provide 200 megawatts of infrastructure to accommodate CoreWeave’s high-performance computing services. The deal was left open with room for further capacity, which saw a further expansion of 70 MW. 

The recent contract now serves as a third extension to the original deal. The June agreement brought crypto mining to the spotlight, which had faced headwinds from the crypto meltdown and the low-profit margins accelerated by the halving event. 

The contract detailed that the relationship would create diversity for the miner’s revenue sources to balance Bitcoin mining. The agreement also mandated that CoreWeave would take care of the expansion costs needed to upgrade Core Scientific’s mining infrastructure to accommodate the AI Hyperscale. As per the announcement, CoreWeave was obliged to invest $300 million to upgrade the infrastructure.