Core Scientific Stock Climbs 17% as Bitcoin Miner Expands Deal with AI Provider CoreWeave

Core Scientific shares climbed more than 17% on Tuesday as the bitcoin mining company announced new developments around its deal with artificial intelligence provider CoreWeave.

Core Scientific (NASDAQ:CORZ) shares soared on Tuesday after the bitcoin mining company announced new developments around its deal with artificial intelligence provider CoreWeave.

As per a press release on Aug. 6, CoreWeave has agreed to add to its hosting deal with the bitcoin miner. The additional infrastructure will see Core Scientific deliver another 112 megawatts for CoreWeave’s Nvidia graphic processing units (GPUs).

The new adjustments to the deal will roll in before the end of 2024, with operations expected to go live in early 2026. Core Scientific’s multi-year deal with CoreWeave will add roughly $2 billion in new hosting revenue.

The 12-year contract is projected to bring in over $6.7 billion in cumulative revenue after the initial contract, which is expected to total $4.7 billion.

Today, Core Scientific announced exercise of additional contract option by @CoreWeave for delivery of ~112 MW of additional infrastructure to host high-performance computing operations.

-Expands total contracted #HPC infrastructure by CoreWeave to 382 MW at 5 $CORZ sites… pic.twitter.com/Z2Fz9dNAC8

— Core Scientific (@Core_Scientific) August 6, 2024

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it,” Core Scientific CEO Adam Sullivan said.

“CoreWeave has one remaining option for 118 megawatts of our infrastructure and we are actively building our pipeline of potential new sites to expand our infrastructure portfolio and business opportunity. By maximizing the value and increasing the scope of our infrastructure portfolio for HPC hosting and bitcoin mining, we believe we can grow our business and the value we deliver to clients and shareholders,” Sullivan noted.

CORZ stock price

Core Scientific shares traded at $9.63 at the time of writing, more than 17% up on the day. CORZ is up 179% year-to-date.

CORZ stock has traded higher since a breakout above $5 in May, with recent news helping the bullish case.

In comparison, BTC is up just over 5% in the past 24 hours as it changes hands around $56,900.

While the value is up since the dip to near $49k on Aug. 5, bitcoin remains more than 12% in the red in the past week. In the past month, BTC/USD is up 28% at the time of writing.

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