Marks Another Meaningful Step in Execution of
Portfolio Diversification Strategy
Increases Total Owned and Contracted
Infrastructure Allocated for HPC Hosting to Approximately 270
MW
Core Scientific, Inc. (NASDAQ: CORZ) (“Core Scientific”
or the “Company”), one of the largest owners and operators of
high-powered digital infrastructure for bitcoin mining and hosting
services in North America, today announced that CoreWeave, the AI
Hyperscaler, has exercised its first option to contract for
additional infrastructure under the terms of its previously
announced 200 megawatt (“MW”), 12-year high-performance computing
(“HPC”) hosting contracts entered into with CoreWeave on June 3,
2024.
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Core Scientific is one of the largest
owners and operators of high-powered digital infrastructure for
bitcoin mining and hosting services in North America (Photo:
Business Wire)
Under the terms of today’s announced agreement, Core Scientific
will modify a total of 100 MW of its owned infrastructure to
deliver approximately 70 MW to host CoreWeave’s NVIDIA GPUs for HPC
operations. Site modifications are expected to begin in the second
half of 2024, with operational status anticipated in the second
half of 2025. This new 12-year HPC hosting contract will further
increase Core Scientific’s exposure to contracted, multi-year,
dollar-denominated revenue. From revenue to gross margin, the new
contract with CoreWeave is expected to enhance earnings power and
drive shareholder value, adding an additional $1.225 billion in
projected cumulative revenue over the 12-year contract timeline to
the more than $3.5 billion in projected cumulative revenue
associated with previously announced contracts with CoreWeave.1
“We are excited to build on our momentum and expand the scope of
our HPC hosting business with significant additional
infrastructure,” said Adam Sullivan, Core Scientific’s Chief
Executive Officer. “The world is changing, and many data centers
built in the last 20 years are not suitable to support future
computing requirements. Core Scientific is well positioned to
design for the future and build application-specific data centers
(ASDCs), which are designed to support much higher rack energy
densities across large footprints. Our ASDCs will serve clients
such as CoreWeave as they deploy next generation chips with higher
densities at scale. We are a hosting provider of choice to our
clients because we own our flexible, high-power infrastructure and
have a team of highly experienced data center experts who can
execute and build rapidly and effectively.”
“As demonstrated by our Austin data center, which we delivered
to CoreWeave more than 30 days ahead of schedule, we intend to
continue to transform and expand our hosting business and our
earnings power as we provide valuable capacity to the dynamic and
exciting world of AI compute during this transformative time for
the industry. We also intend to reinforce our strong bitcoin mining
franchise to capitalize on bitcoin’s upside potential,” Mr.
Sullivan added.
Consistent with the terms of the agreements with CoreWeave
previously announced on June 3, 2024, 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 $105 million of
the capital investments associated with the additional contract
will be credited against hosting payments at no more than 50% of
monthly fees until fully repaid. The new agreement with CoreWeave
also provides opportunities for two renewal terms of five years
each.
Building on the previously announced 200 MW of infrastructure
for HPC hosting, the agreement announced today will position Core
Scientific to provide approximately 270 MW of HPC infrastructure to
CoreWeave by the second half of 2025. CoreWeave retains optionality
for further expansion with an additional approximately 230 MW of
infrastructure for HPC hosting at other Core Scientific sites,
which if exercised would place Core Scientific among the largest
data center operators in the United States.
With its total of 1.2 gigawatts of contracted power, Core
Scientific is able to deliver a total of nearly 500 MW of
infrastructure for HPC hosting to be used for alternative compute
workloads based on geographic proximity to major cities and fiber
lines.2
Additional Information
To learn more about Core Scientific’s HPC expertise and
compelling market opportunity, view the Company’s June 2024
Investor and Analyst Day presentation here and access the
accompanying audio webcast here.
About Core Scientific
Core Scientific is one of the largest owners and operators of
high-powered digital infrastructure for bitcoin mining and hosting
services in North America. Transforming energy into high value
compute with superior efficiency at scale, we employ our own large
fleet of computers (“miners”) to earn bitcoin for our own account
and provide hosting services for large bitcoin mining and
high-performance computing customers at our eight operational data
centers in Georgia (2), Kentucky (1), North Carolina (1), North
Dakota (1) and Texas (3). We derive the majority of our revenue
from earning bitcoin for our own account (“self-mining”). To learn
more, visit www.corescientific.com.
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 revenue, financial and other 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 revenue, financial and other 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;
unavailability of expected power or materially adverse changes in
the terms associated with available power; 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 Securities and Exchange Commission.
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 Securities and Exchange Commission, and if
any of these risks materialize or our assumptions prove incorrect,
actual results could differ materially from the results implied by
these forward-looking statements. Accordingly, undue reliance
should not be placed upon the forward-looking statements. The
Company does not assume any duty or obligation (and does not
undertake) to update or supplement any forward-looking
statements.
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_________________________ 1 Represents total cumulative revenue
over all 12-year contract periods, before prepaid build out costs.
2 500 MW of infrastructure for HPC hosting represents 700 MW of
gross infrastructure
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version on businesswire.com: https://www.businesswire.com/news/home/20240625541641/en/
Investors: ir@corescientific.com
Media: press@corescientific.com
Joseph Sala / Mahmoud Siddig Joele Frank, Wilkinson Brimmer
Katcher (212) 355-4449
Core Scientific (NASDAQ:CORZ)
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