Core Scientific Reports $265M Loss in Q4, Aims AI-Driven Growth

Bitcoin mining giant Core Scientific is making a bold move into the artificial intelligence sector with a $1.2 billion data center expansion in Texas. The company announced its partnership with AI startup CoreWeave alongside its fourth-quarter 2024 earnings report, which revealed a net loss of $265 million.

Despite the financial setback, Core Scientific emphasized that a significant portion of its losses stemmed from non-cash adjustments related to stock warrants and contingent liabilities, rather than operational failures. The company clarified that these accounting changes were necessary due to a sharp increase in its stock price over the past year.

The highlight of Core Scientific’s announcement was its ambitious expansion plan. The partnership with CoreWeave is set to generate $1.2 billion in contracted revenue, with projections of up to $10 billion in potential cumulative revenue over time. This move marks a strategic pivot toward high-performance computing (HPC), an area increasingly intersecting with AI and advanced data processing.

Core Scientific Massive Plans

As part of the expansion, Core Scientific is increasing its capacity in Denton, Texas, positioning itself as a leading provider of AI-driven data center solutions. The company also stated that this facility will be “one of the largest GPU supercomputers in North America,” designed to support advanced artificial intelligence applications and low-latency computing.

Core Scientific CEO Adam Sullivan expressed excitement about the deeper collaboration with CoreWeave. “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,” he said.

The announcement had an immediate impact on Core Scientific’s stock price. According to Google Finance, shares jumped 12.29% in after-hours trading, rising from $10 to $11.25 following the expansion news.

Bitcoin Miners Embrace AI and HPC

Core Scientific’s move further underscores a growing trend among Bitcoin mining firms diversifying into AI and HPC services. Companies like Hive Digital, Hut 8, and Iris Energy have already reallocated part of their operations to support AI-driven workloads.

In October 2024, Bitcoin miner TeraWulf also sold its stake in a mining facility for $92 million, redirecting its resources toward AI hosting and HPC infrastructure. As AI demand surges, Bitcoin miners are finding lucrative opportunities beyond traditional crypto mining, blending blockchain technology with next-generation computing.

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