Core Scientific, a prominent provider of Bitcoin mining and hosting services in North America, has announced a major partnership with AI Hyperscaler CoreWeave. The collaboration, which spans over 12 years, is projected to bring in more than $3.5 billion in revenue, a significant milestone for both companies.
This partnership signifies a strategic expansion of Core Scientific’s business model, moving beyond Bitcoin mining to include alternative compute hosting services. This shift comes in response to the recent Bitcoin halving, which cut miner rewards by 50%. By diversifying its revenue streams, Core Scientific aims to reduce risk, increase cash flow, and still benefit from the potential growth of Bitcoin.
The collaboration will involve Core Scientific providing 200 megawatts of infrastructure, with CoreWeave investing in the necessary modifications to existing sites. The upgraded infrastructure is slated to be operational by the first half of 2025. In exchange, CoreWeave will credit Core Scientific approximately $300 million, offsetting their monthly hosting fees. This unique arrangement underscores both companies’ commitment to driving innovation and growth in the compute hosting sector.
As the Bitcoin mining industry faces mounting challenges, Core Scientific’s foray into alternative compute hosting represents a significant strategic shift. Adam Sullivan, the company’s CEO, emphasized the importance of diversification for maintaining a competitive edge. As the landscape continues to evolve, partnerships like this one are poised to have a pivotal role in shaping the future of compute hosting.