Core Scientific to Provide Approximately 200 MW of Infrastructure to Host CoreWeave’s High-Performance Computing Services, Capturing Significant AI Compute Opportunity
Transforms and Expands
Long-Term Hosting Agreements Expected to Generate Total Cumulative Revenue for
Positions
Under the terms of the agreements,
“Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute, one of today’s most dynamic technology segments, while also maintaining our strong bitcoin mining franchise,” said
“The agreements announced today also provide CoreWeave with options over the next 60 to 90 days to further expand its hosting footprint with
Per the agreements, all capital investments required to modify Core Scientific’s existing infrastructure into cutting-edge, application-specific data centers customized for dense HPC will be funded by CoreWeave. An estimated
Core Scientific’s agreements with CoreWeave complement its current business model with the addition of an expected stable, recurring, long-term and high margin revenue stream. Moving forward, the new HPC hosting contracts will increase Core Scientific’s exposure to contracted, dollar-denominated revenue. Once the approximately 200 MW of HPC infrastructure is operational, the project is estimated to generate total cumulative revenue for
From 2019 to 2022,
With its total of 1.2 gigawatts of contracted power,
In connection with this expansion of Core Scientific’s HPC hosting strategy,
Advisors
About
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “opportunity,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “potential,” “hope” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements include, but are not limited, statements regarding potential benefits of or expectations regarding the strategic relationship, agreements and contemplated transactions with CoreWeave, impacts on the Company’s financial and operating results, completion and timing of certain events, impacts on the Company’s trading multiple and ability to deliver shareholder value, the Company’s intention and ability to capitalize on additional or related opportunities, and the Company’s plans, objectives, expectations and intentions. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, which could include, but are not limited to, unanticipated difficulties or expenditures relating to the strategic relationship, agreements and contemplated transactions with CoreWeave; the possibility that the anticipated financial and operational benefits of the strategic relationship, agreements and contemplated transactions and additional opportunities are not realized when expected or at all; disruptions of current plans and operations caused by the announcement and execution of the strategic relationship, agreements and contemplated transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business, regulatory or employee relationships, including those resulting from the announcement or execution of the strategic relationship, agreements and contemplated transactions; unexpected risks or the materialization of risks that are greater than anticipated; occurrence of any event, change or other circumstance that could give rise to the termination of the contracts with CoreWeave; delays in required approvals; the availability of government incentives; and legal proceedings, judgments or settlements in connection with the strategic relationship, agreements and contemplated transactions, as well as other risk factors set forth in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including those identified in the Company’s reports filed with the
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure. For further information regarding the Company’s definition of, and additional information related to, non-GAAP financial measures, see “Key Business Metrics and Non-GAAP Financial Measures” in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the
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1 Represents total cumulative revenue over all 12-year contract periods, before prepaid build out costs.
2 500 MW of HPC power represents 700 MW of gross contracted power.
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