According to CoinDesk, shares of bitcoin miner Core Scientific (CORZ) surged by up to 17% following the announcement of an extended high-performance computing (HPC) contract with CoreWeave. This new agreement is expected to generate a total of $6.7 billion in revenue over the contract's duration, starting in the first half of 2026.
Core Scientific revealed that it has exercised an option from a previous contract to host an additional 112 megawatts (MW) of GPUs for CoreWeave, an AI Hyperscaler firm. This extension is projected to add approximately $2 billion in revenue. CoreWeave will cover all capital investments required to upgrade Core Scientific’s existing mining infrastructure for HPC purposes.
Adam Sullivan, CEO of Core Scientific, stated, '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.' Initially, Core Scientific agreed to provide hosting infrastructure for 200MW of GPUs for CoreWeave, with options for further capacity. The deal was later expanded by an additional 70MW, making this the third extension.
The original agreement brought renewed attention to the mining industry, which had been struggling due to the harsh crypto winter and low profit margins following recent halvings. HPC and AI companies require energy-intensive data centers, which are costly and time-consuming to establish. Bitcoin miners, however, already possess the necessary power contracts and infrastructure, making them ideal candidates to host HPC and AI-related machines.
Core Scientific is capitalizing on this market opportunity and has options for another extension to host an additional 118MW of HPC computing machines. Sullivan added, 'The latest contract also validates that our strategy for developing application-specific data centers aligns with the increasing energy density requirements for high-performance computing that legacy data centers do not typically satisfy.'