Core Scientific, a leading North American bitcoin miner and hosting services provider, has announced a substantial expansion to facilitate CoreWeave's intensive computing operations. Under a newly disclosed agreement, Core Scientific will dedicate an additional 70 MW of its existing infrastructure to host CoreWeave's NVIDIA GPUs, crucial for their high-performance computing (HPC) needs.

The decision follows CoreWeave's exercise of its option under a 12-year, 200 MW deal signed earlier this month, with all financial obligations for modifying Core Scientific's infrastructure being borne by CoreWeave.

Adam Sullivan, CEO of Core Scientific, highlighted the strategic significance of these developments in adapting their infrastructure to accommodate next-generation chips with higher energy densities. This move underscores their commitment to enhancing application-specific data centers (ASDCs), capable of supporting substantial rack energy densities across expansive facilities.

Earlier forecasts by Core Scientific estimated that the agreement with CoreWeave would generate approximately $290 million in annual revenue, contributing over $3.5 billion in total revenue over the contract's duration. The market responded positively to the announcement, with Core Scientific's stock (ticker CORZ) witnessing a nearly 10% increase following the news.

This expansion aligns with broader industry trends, as bitcoin miners like Core Scientific seek to diversify revenues following the recent bitcoin halving event. It also solidifies Core Scientific's position as a pivotal player in supporting partners involved in AI hyperscaling and high-performance computing sectors.

In summary, Core Scientific's initiative to bolster its infrastructure to support CoreWeave's computing requirements marks a significant stride towards fortifying capabilities in digital infrastructure services for advanced computing applications.