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CoreWeave just found a new partner for hosting their GPUs. And they’re one of the biggest publicly traded Bitcoin mining companies in the world.
What’s happening:
- Bitcoin mining company Core Scientific (NASDAQ:CORZ) has announced a new partnership with specialized GPU provider CoreWeave to provide 200 megawatts of infrastructure to host CoreWeave’s GPUs for artificial intelligence cloud computing
By the numbers:
- The long term hosting agreement is set to generate more than $3.5B USD in revenue for Core Scientific over 12 years
- Core Scientific currently has 1.2 gigawatts of contacted power across all of its operations
Going deeper:
- CoreWeave has been raising capital rapidly, previously announcing a $7.5B USD debt deal led by Blackstone which was then followed by a $1.1B USD Series C financing round
- The demand for artificial intelligence cloud computing has been surging, which has led multiple publicly traded Bitcoin mining companies to begin to retrofit their operations to be able to host GPUs and has also caused a boom in new data centre infrastructure being built out globally
The intrigue:
- CoreWeave also made an offer to purchase Core Scientific outright at a price of $5.75 per share, which was ultimately rejected by Core Scientific
Market reaction:
- Shares of Core Scientific are up more than +60% since the announcement
