Mining Company Core Scientific and AI Firm Sign 12-Year Contract! Estimated Revenue Exceeds $3.5 Billion

US Bitcoin mining and hosting services provider Core Scientific announced today that it has signed a series of 12-year partnership agreements with cloud computing solutions provider CoreWeave.

CoreWeave initially focused on Ethereum mining, but ceased its Ethereum mining operations prior to the Ethereum merge upgrade in September 2022. Since transitioning to AI-related business, the company has experienced rapid growth.

Revenue from the agreement exceeds $3.5 billion Core Scientific CEO Adam Sullivan stated in a press release that this partnership diversifies the company's investment portfolio:

"Our expanded relationship with CoreWeave creates a pathway for Core Scientific to develop a diversified business model, enabling us to balance our portfolio between Bitcoin mining and alternative computing hosting, thereby maximizing cash flow and reducing risk while maintaining significant exposure to Bitcoin’s potential upside."

Regarding the understanding of mining facilities, Adam Sullivan also mentioned:

"The best way to understand Bitcoin mining facilities is that we are essentially the power shells of the data center industry."

It is understood that Core Scientific plans to provide 200 megawatts of infrastructure and renovate its existing sites to accommodate CoreWeave's operations. Core Scientific stated that these sites are expected to be ready for operation in the first half of 2025.

Meanwhile, to offset the infrastructure renovation costs, CoreWeave plans to provide approximately $300 million in funding to Core Scientific, which will be gradually deducted from its monthly hosting fees.

Additionally, Core Scientific expects that the signed partnership agreement will generate an average annual revenue of approximately $290 million, with a total cumulative revenue exceeding $3.5 billion over the 12 years.

Bitcoin mining companies seek diversified income post-halving On the other hand, due to the Bitcoin halving event on April 20, which halved the block rewards for miners, many Bitcoin mining companies have been seeking diversified income sources. Besides the partnership between Core Scientific and the AI company, other mining companies have also extended their revenue streams into the AI field.

According to CNBC, Bitcoin mining company Bit Digital derives 27% of its revenue from artificial intelligence, while other mining companies like Hut 8 and Hive derive 6% and 4% of their revenue from artificial intelligence, respectively.