Core Scientific, renowned for its large-scale Bitcoin mining operations, is on the verge of becoming a significant force in artificial intelligence (AI) hosting services thanks to a transformative 12-year contract with CoreWeave, signed in June.
New Contract
According to analysts, this contract grants Core Scientific access to the rapidly growing high-performance computing (HPC) market for AI. The company's move into this burgeoning market promises substantial revenue growth and enhanced market position.
Capacity Reallocation
Core Scientific plans to repurpose nearly 500 MW of its capacity from Bitcoin mining to AI hosting. This decision is driven by the desire to diversify its business and reduce risks associated with cryptocurrency volatility. Such a reallocation could significantly boost the company's revenues and competitiveness.
Maintaining Mining Potential
However, Core Scientific retains about 230 MW of power capacity to continue its Bitcoin mining operations. This represents additional growth opportunities and demonstrates a strategic approach to resource allocation in a changing market.
Experts believe this strategic move allows Core Scientific to diversify its business processes and mitigate risks associated with the volatility of the cryptocurrency market.
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