In January, US Bitcoin miner Core Scientific went bankrupt and battled angry lenders. Since returning to the stock market that month, the stock has risen 140% as the company aggressively develops its artificial intelligence business.
On Tuesday, the mining company announced an expanded $6.7 billion deal with CoreWeave, an Nvidia-backed startup that is one of the chipmaker’s main providers of technology for running artificial intelligence models. Core Scientific will provide an additional 112 megawatts of computing infrastructure to support CoreWeave’s operations.
core science transaction theory It is expected to generate an additional $2 billion in revenue over 12 years, while the existing arrangement is expected to bring in $4.7 billion. Overall, the company plans to deliver approximately 382 MW of infrastructure to CoreWeave in the first half of 2026, with the potential to add 118 MW at other Core Scientific sites.
The sites are expected to begin renovation in the second half of 2024 and be fully operational in the first half of 2026.
“We have grown tremendously since our founding in January and have been laser-focused on developing best-in-class digital infrastructure,” Core Scientific CEO Adam Sullivan told CNBC. “This infrastructure advantage allows us to diversify our revenue, and reallocate certain facilities to meet growing demand for the types of technologies required for artificial intelligence.”
Publicly traded Bitcoin miners have been pivoting into the artificial intelligence infrastructure business for months as profits from mining Bitcoin plummeted following April’s halving. These companies have spent time and money renovating data centers across the country that can be retrofitted to serve entirely new customer categories.
But moving to artificial intelligence is not as simple as repurposing existing infrastructure and machines because the needs are different and so are the demands on the data network.
Needham analysts wrote in a report in May that nearly all the infrastructure miners currently have “needs to be bulldozed and built from the ground up to accommodate HPC,” or high-performance computing.
Core Scientific’s Sullivan was one of the mining leaders who participated in a closed roundtable in June with former President Donald Trump, who recently joined the conversation on the convergence of Bitcoin mining and artificial intelligence.
Power supply for the Wheatstone Bitcoin mining farm in Rockdale, Texas.
A report from JPMorgan Chase showed that the total market capitalization of the 14 major U.S.-listed Bitcoin miners tracked by JPMorgan reached a record high of $22.8 billion on June 15.
Bit Digital is a Bitcoin miner that currently derives an estimated 27% of its revenue from artificial intelligence. explain In June this year, the company reached an agreement with a customer to supply Nvidia GPUs to a data center in Iceland over three years, with the deal expected to bring in annual revenue of $92 million. It pays for GPU fees by liquidating some of its crypto assets.
Miami-based Hut 8 said in June Raises $150 million in debt from private equity firm Coatue Help build the artificial intelligence data center product portfolio.
Core Scientific fell 7.5% on Monday as global stock markets tumbled, hammering cryptocurrency prices and artificial intelligence companies. Analysts at Cantor Fitzgerald said in a note that they view the sell-off as a buying opportunity in publicly traded mining stocks.
In June, shortly after the two parties reached a preliminary agreement, CoreWeave offered to acquire Core Scientific for $1.02 billion. Core Sciences rejected the bid. Core Scientific is currently valued at approximately US$1.5 billion.
watch: New multi-billion dollar deal adds to rising trend of Bitcoin miners turning to artificial intelligence
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