A top holding in bitcoin miners ETFs has announced it will provide additional infrastructure to CoreWeave as part of an existing deal.
Core Scientific (CORZ) struck a deal with CoreWeave, the AI Hyperscaler, in early June. On Tuesday, the company announced CoreWeave exercised its first option to contract for additional infrastructure under the terms of its previously announced 200 megawatt,12-year high-performance computing hosting contracts.
Core Scientific is one of the largest owners and operators of high-powered digital infrastructure for bitcoin mining and hosting services in North America, according to the firm. The company is a top holding in several bitcoin miners ETFs.
Details on the Deal
Core Scientific will modify a total of 100 MW of its owned infrastructure to deliver approximately 70 MW to host CoreWeave’s NVIDIA GPUs for HPC operations per the June 25 agreement, according to a statement from the firm.
Furthermore, site modifications are expected to begin in the second half of 2024, with operational status anticipated in the second half of 2025, the statement said.
This marks further development in execution of Core Scientific’s portfolio diversification strategy. The 12-year HPC hosting contract will increase Core Scientific’s exposure to contracted, multi-year, dollar-denominated revenue, according to the statement.
The new contract should enhance earnings power as well as drive shareholder value. The development will add an additional $1.225 billion in projected cumulative revenue over the 12-year contract timeline. This figure is in addition to the more than $3.5 billion in projected cumulative revenue associated with previously announced contracts with CoreWeave, the firm said.
Notably, the new agreement positions Core Scientific to provide approximately 270 MW of HPC infrastructure to CoreWeave by the second half of 2025, according to the firm. Additionally, CoreWeave retains optionality for further expansion, which would place Core Scientific among the largest data center operators in the U.S.
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