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Core Scientific Expands High-Performance Computing Infrastructure
Core Scientific, a prominent player in the Bitcoin mining sector, is set to enhance its high-performance computing (HPC) capabilities by adding 112 megawatts (MW) to reach a total of 382 MW. This expansion will support CoreWeave’s NVIDIA graphics processing units (GPUs), as announced in a statement on August 6. The partnership is projected to generate an additional $2 billion in revenue over the next twelve years, in addition to the $4.7 billion anticipated from existing contracts.
Market Response and Infrastructure Development
Following the announcement, shares of Core Scientific surged by over 18%, reaching a trading price of $9.74, according to data from Yahoo Finance. The company also revealed that CoreWeave has the opportunity to utilize an additional 118 MW of infrastructure at various locations. If the agreement proceeds as planned, Core Scientific could emerge as one of the leading data center providers in the United States.
CoreWeave is set to finance all necessary capital expenditures to upgrade Core Scientific’s infrastructure into advanced, application-specific data centers optimized for high-density HPC. The contract includes options for two renewals, each lasting five years. The infrastructure modifications are scheduled to commence in the latter half of 2024, with operations anticipated to launch in early 2026.
CEO Insights on Strategic Direction
Adam Sullivan, the CEO of Core Scientific, expressed confidence in the new contract, stating, “This latest agreement confirms that our approach to developing application-specific data centers is in line with the rising energy density demands of high-performance computing, which traditional data centers often fail to meet.”
Bitcoin Mining Performance
In July, Core Scientific successfully mined 411 BTC using its proprietary mining fleet, as reported on August 6. The company operated approximately 172,000 BTC miners, representing around 81% of the total miners within its data centers. This fleet achieved a cumulative hash rate of 20.1 EH/s.
Additionally, Core Scientific provided hosting and operational support for roughly 41,500 BTC miners owned by customers, which accounted for about 19% of the total miners in its data centers as of July 31, 2024. Sullivan remains optimistic about the company’s future, especially with the upcoming integration of Block’s new 3-nanometer ASIC chip and the ongoing growth of its HPC business.
“The outlook for our bitcoin mining operations is promising as we transition miners to dedicated facilities and prepare to adapt a substantial portion of our high-powered infrastructure for HPC hosting,” Sullivan concluded.
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