Core Scientific signs AI deal that it expects to generate USD $3.5 billion – DiarioBitcoin
By Hannah Perez
Bitcoin miner Core Scientific, which lists its shares on Nasdaq, signed 12-year contracts with CoreWeave, of the artificial intelligence industry. The agreement comes less than two months after the fourth Bitcoin halving.
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- Bitcoin miner Core Scientific is betting on artificial intelligence
- Signed a 12-year agreement with AI company, CoreWeave
- The alliance comes less than two months after the fourth Bitcoin halving
Core Scienceformerly one of the largest miners in Bitcoin of the world, is moving towards AI.
The company, which provides hosting and mining services bitcoinsannounced this Tuesday that it has signed a strategic agreement with the artificial intelligence (AI) company CoreWeave which he estimates will generate income of more than USD $3 billion.
Specifically, the mining company detailed the signing of a series of 12-year contracts that it projects will provide it with $290 million in average annual revenue and a total accumulated income of more than $3.5 billion during the period of the agreement.
As part of the association, Core Scientific will provide an additional 200 megawatts (MW) of infrastructure to host high-performance computing (HPC) operations CoreWeave.
It also expressed plans to renovate its existing sites to accommodate its AI partner’s operations. CoreWeave will fund all capital investments necessary for these infrastructure changes and, to offset the cost, plans to credit Core Scientific approximately $300 million, which will be gradually deducted from your monthly hosting fees. The mining company announced that it hopes to have the facilities ready to operate in the first quarter of 2025.
“Our expanding relationship with CoreWeave creates a path for Core Scientific to diversify our business model and balance our portfolio between bitcoin mining and alternative computing hosting, positioning us to maximize cash flow and minimize risk while maintaining our significant exposure to Bitcoin bullish potential“, said Director of Core ScientificAdam Sullivan, in the statement.
This is not the first alliance between the two. In March 2024, Core Scientific signed a multi-year agreement with CoreWeave for provide up to 16 MW of data center infrastructure to support AI and HPC operations.
Bitcoin mining diversifies towards AI
The miners of Bitcoin have been seeking to diversify their businesses, with many of them betting on artificial intelligence, following the fourth halving of Bitcointhe network’s scheduled event that halves miners’ rewards.
The fourth halving event Bitcoin took place on April 20, which effectively cut miners’ income from block subsidies. The reward went from 6.25 BTC to 3.125 BTC.
Bitfarmsa mining company Bitcoin known with operations throughout the American continent, said this Tuesday that it had registered a 42% drop compared to the previous month in its income, just after the halving.
Ahead of the event, several of its industry peers announced strategies to expand into the AI data center business in a bid to diversify their revenue streams. Digital Bit, Hut 8 and Hive Blockchainwere some of them.
The latest agreement Core Scientific It comes just months after the company emerged from bankruptcy in January 2024. Core Scientificwhich trades its shares on the Nasdaq exchange, had filed for bankruptcy in the US in December 2022 amid liquidity problems and the broader collapse in the cryptocurrency industry.
For the first quarter of 2024, Core Scientific record net income of USD $210.7 million, compared to a net loss of USD $388,000 in the same period of 2023. In January, the company’s shares they resumed their trading on Nasdaq.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Unsplash
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