Shares of bitcoin mining company Core Scientific (CORZ) saw a huge spike, rising as much as 17% on Tuesday following the announcement of a new contract with CoreWeave, an AI hyperscaler firm.
This deal represents an extension of a previous high-performance computing (HPC) contract, with a projected addition of around $2 billion in revenue over its lifespan, bringing the total expected revenue from the collaboration to approximately $6.7 billion, which is set to commence in the first half of 2026.
Core Scientific Expands Hosting Capabilities
In a statement, Core Scientific detailed that it has opted to broaden its hosting capabilities by providing approximately 112 megawatts (MW) of additional GPU support for CoreWeave. Notably, all capital investments necessary to prepare Core Scientific’s existing mining infrastructure for HPC will be covered by CoreWeave. CEO Adam Sullivan expressed his enthusiasm about the deal, stating, “We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data centre infrastructure and the unique ability of our team to deliver it.”
This new agreement is the latest in a series of expansions, following an earlier commitment to host 200 MW worth of GPUs for CoreWeave, as well as an increase of an additional 70 MW. The resurgence of interest in the mining sector, previously dampened by a harsh crypto winter and low profit margins due to recent mining halving, has been reignited by these types of high-value contracts.
Meeting the Demand for Energy-Intensive Data Centers
High-performance computing and AI companies have an increasing demand for energy-intensive data centres, which require substantial resources to secure. Bitcoin miners, such as Core Scientific, already possess power contracts and the necessary infrastructure, positioning them as prime candidates to host HPC and AI machines. This capability is particularly advantageous, as building new facilities from the ground up can be both costly and time-consuming.
Exploring further opportunities, Core Scientific has indicated that they possess options for additional extensions of the contract to host 118 MW for HPC computing, further validating their strategy to develop specialised data centres that fulfil the growing energy density requirements often unmet by legacy facilities.
Adam Sullivan also noted a shift in the landscape, revealing that private equity firms have begun to show significant interest in forming partnerships with bitcoin miners to facilitate AI computing. Following the announcement of the initial contract with CoreWeave, Core Scientific has attracted inquiries from top-tier private equity firms seeking to finance and collaborate on further initiatives.
Sullivan pointed out that the ongoing demand for data centre capacity related to AI computing has prompted an influx of interest from investors looking to tap into the potential of existing mining infrastructure. “Private equity is obviously chasing the data centre space right now; even private equity firms that haven’t necessarily done data centres before are evaluating the space,” he explained.
AI Industry’s Growing Energy Needs
As the AI industry continues to expand rapidly, the pressure on energy resources is becoming apparent, with reports suggesting that AI operations may consume energy comparable to that of a small country. The surge in AI computing requirements presents challenges for firms in the sector, as they strive to maintain operational speed and capacity. With substantial capital flowing into AI, the immediate availability of infrastructure remains a pressing concern.
Bitcoin miners, with their already developed sites and energy contracts, are emerging as a lucrative solution for AI firms. Sullivan emphasised, “One of the biggest constraints [for data centres] right now is finding sites that have over 100 megawatts of power and have the high voltage substation’s transformer in place. Those are difficult sites to find, and it just so happens that that’s been the criteria for locating bitcoin mining sites for the past four years.”
Renewed Optimism for the Mining Sector
Core Scientific secured a 12-year, 200 MW agreement with CoreWeave for AI-related computing needs, with options to expand the capacity further. Sullivan noted the wave of interest this deal has generated, saying that Core Scientific has received several approaches from top-tier private equity firms since its announcement—demonstrating a renewed optimism for the mining sector.
Investment bank JPMorgan has acknowledged this trend, suggesting that the deal is indicative of the bitcoin mining sector’s growing involvement in high-performance computing. The firm hinted that this could signal a new era of mergers and acquisitions within the mining industry, as established players look to capitalise on the increasing convergence between cryptocurrency mining and the rapidly evolving needs of AI and data centre capabilities. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
