Bitcoin mining company Core Scientific unveiled plans for a $1.2 billion data center expansion in partnership with artificial intelligence startup CoreWeave. The announcement followed the company’s fourth-quarter 2024 earnings report, which showed a net loss of $265 million.
On Feb. 26, the Bitcoin (BTC) mining company published its fourth quarter and full-year results for 2024. It reported a net loss of $265.5 million in Q4, largely attributed to a $224.7 million “non-cash mark-to-market adjustment to warrants and other contingent value right liabilities.”
The company said the adjustment was necessary due to a significant year-over-year increase in its stock price, requiring it to update the accounting of financial obligations. Core Scientific emphasized that the loss did not represent actual cash outflows.
Alongside its earnings report, the company announced a data center expansion in Texas in collaboration with CoreWeave. The company expects the project to generate $1.2 billion in contracted revenue as it positions itself as a provider of application-specific data centers for high-performance computing (HPC) workloads.
Core Scientific may see $10 billion revenue with CoreWeave
Core Scientific said it’s positioned to capitalize on the growing demand for energy-dense and application-specific data centers. While its new agreement anticipates $1.2 billion, the company said it could generate over $10 billion in potential cumulative revenue with CoreWeave.
Core Scientific CEO Adam Sullivan said the company is thrilled to deepen its relationship with CoreWeave. He said:
“We are thrilled to deepen our relationship with CoreWeave as we continue developing large-scale HPC projects that power advanced AI and other low-latency workloads.”
The company said that by expanding its capacity in Denton, Texas, they are building “one of the largest GPU supercomputers in North America.”
Google Finance data shows that the crypto mining company’s stock price rose by 12.29% from $10 to $11.25 during after-hours trading following its data center announcement.
Related: Core Scientific to host more CoreWeave infrastructure, targets $8.7B revenue
Bitcoin miners expand into AI hosting
Core Scientific’s move highlights how mining companies are capitalizing on opportunities in AI hosting. According to fund manager VanEck, as of last August, Hive Digital, Hut 8 and Iris Energy were among those that had already converted part of their businesses to HPC and AI.
On Oct. 4, Bitcoin mining firm TeraWulf sold its stake in a Bitcoin mining facility for $92 million, saying that the proceeds would go toward hosting AI and building HPC data centers.
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