Core Scientific, a leading North American Bitcoin mining and hosting services provider, has announced a significant partnership with AI Hyperscaler CoreWeave. The 12-year contract is expected to generate over $3.5 billion in revenue, marking a major milestone for both companies.
The agreement represents a strategic diversification of Core Scientific‘s business model, expanding its services beyond Bitcoin mining to include alternative compute hosting.
This move is seen as a response to the recent Bitcoin halving, which reduced miner rewards by 50%. By diversifying its revenue streams, Core Scientific aims to minimize risk and maximize cash flow while maintaining its exposure to Bitcoin‘s potential upside.
A New Era of Compute Hosting
The partnership will see Core Scientific supply 200 megawatts of infrastructure, with CoreWeave funding all necessary capital investments to modify existing sites.
The modified infrastructure is expected to be operational by the first half of 2025. In return, CoreWeave will credit Core Scientific an estimated $300 million, which will be deducted from their monthly hosting fees. This innovative arrangement demonstrates the commitment of both companies to driving growth and innovation in the compute hosting space.
With the Bitcoin mining industry facing increased pressure following the halving, Core Scientific’s move into alternative compute hosting marks a significant shift in strategy. The company’s CEO, Adam Sullivan, highlighted the importance of diversification in maintaining a competitive edge. As the industry continues to evolve, partnerships like this one are likely to play an increasingly important role in shaping the future of compute hosting.