Core Scientific reported a $265 million loss for Q4 and revealed plans for a $1.2 billion data center expansion.
Through its partnership with CoreWeave, Core Scientific envisions exceeding $10 billion in revenue from artificial intelligence operations.
Bitcoin mining company Core Scientific is set to invest $1.2 billion in expanding its data centers through its partnership with CoreWeave, an AI startup.
After disclosing its Q4 2024 earnings, which showed a $265 million net loss, the company announced its expansion plans.
On February 26, Core Scientific shared its Q4 and full-year 2024 financial results.
Core Scientific’s Q4 financials revealed a $265.5 million net loss, mainly because of a $224.7 million “non-cash mark-to-market adjustment to warrants and other contingent value right liabilities.”
A major year-over-year surge in stock value forced the company to update its accounting approach for financial liabilities, leading to the adjustment.
Core Scientific clarified that the loss did not involve any direct cash movement.
Alongside reporting its financial performance, the company announced a partnership with CoreWeave to expand its data center operations in Texas.
With this project, Core Scientific expects to secure $1.2 billion in contracted revenue while strengthening its role as a provider of specialized data centers for high-performance computing.
Core Scientific stated that it holds a strong position to capitalize on the growing demand for data centers designed for energy-intensive applications.
While the new partnership projects $1.2 billion in expected revenue, Core Scientific believes its long-term collaboration with CoreWeave could generate over $10 billion.
CEO Adam Sullivan expressed his enthusiasm about expanding Core Scientific’s 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 announced that it continues to expand in Denton, Texas, as part of its effort to establish “one of the largest GPU supercomputers in North America.”
The crypto mining company’s stock jumped 12.29% in after-hours trading, rising from $10 to $11.25, as reported by Google Finance after the data center news.
Core Scientific’s actions highlight how crypto mining companies are expanding into AI hosting to maximize new opportunities.
VanEck stated that by last August, Hive Digital, Hut 8, and Iris Energy had already begun diversifying their businesses by incorporating HPC and AI.
On October 4, Bitcoin mining company TeraWulf sold its share in a mining facility for $92 million and explained that it would allocate the revenue to AI hosting and HPC infrastructure.
