The shares of Bitcoin mining titan Core Scientific (CORZ) skyrocketed by 17% on Tuesday, outpacing other crypto-affiliated stocks. This surge followed the announcement of an augmented high-performance computing (HPC) contract with CoreWeave, a significant player in AI hyperscaling.

Strategic Expansion in HPC Infrastructure

Core Scientific has strategically leveraged its existing infrastructure to capitalize on burgeoning demand for HPC services. The company revealed that it had exercised an option from a prior contract to host approximately 112 megawatts (MW) of additional GPUs for CoreWeave. This extension is projected to infuse an additional $2 billion in revenue, escalating the total to an impressive $6.7 billion by the first half of 2026. Notably, CoreWeave will shoulder all capital investments necessary to upgrade Core Scientific’s mining infrastructure to accommodate HPC requirements.

Leadership Insight

Adam Sullivan, CEO of Core Scientific, emphasized the strategic importance of this expanded partnership. “We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the robust demand for high-power data center infrastructure and our unique capability to deliver it,” he stated.

Historical Context and Future Prospects

Initially, Core Scientific committed to providing hosting infrastructure for 200MW worth of GPUs for CoreWeave, with provisions for further expansion. This deal was subsequently extended by 70MW, leading to the latest augmentation. The original agreement revitalized the mining industry, which had been beleaguered by a protracted crypto winter and diminishing profit margins due to recent halving events.

The Synergy Between Bitcoin Mining and HPC

HPC and AI enterprises demand energy-intensive data centers, which are both costly and time-consuming to establish. In contrast, Bitcoin miners possess pre-existing power contracts and infrastructure, positioning them as ideal candidates to host HPC and AI-related equipment. This market dynamic presents a lucrative opportunity for miners like Core Scientific, which has secured options for an additional contract extension to host another 118MW of HPC machines.

CEO’s Perspective

Sullivan underscored the significance of the latest contract, stating, “The latest contract also validates that our strategy for developing application-specific data centers aligns with the increasing energy density requirements for high-performance computing that legacy data centers do not typically satisfy.”