Core Scientific, a US bitcoin mining company, declared bankruptcy in January of this year, but since it returned to the stock market after restructuring, the company has been committed to transforming its business into AI, and its stock price has risen 140%. Meanwhile, on Tuesday, Core Scientific announced a partnership with Nvidia-backed start-up CoreWeave, reaching a $6.7 billion agreement. CoreWeave is one of the main chip providers for running AI models. Core Scientific will provide an additional 112 megawatts of computing infrastructure to support CoreWeave's operation. The news stimulated Core Scientific to rise by 18.13% on Tuesday, reaching $9.71. For example, the mining company Bit Digital currently estimates that 27% of its revenue comes from AI. In June, the company announced that it had reached an agreement with a client to supply Nvidia GPUs in data centers in Iceland, which is expected to generate $92 million in revenue annually. Some of the funds used to pay for GPUs come from the sale of some of their cryptocurrency holdings. In addition, Hut 8, headquartered in Miami, announced in June that it had raised $150 million in debt from private equity firm Coatue to help build its AI data center.$CORZ.US$ The company went bankrupt in January this year, but since its return to the stock market after restructuring, it has been committed to transforming into the AI business.

At the same time, Core Scientific announced on Tuesday a collaboration with Nvidia-supported startup CoreWeave to expand cooperation, reaching a $6.7 billion agreement.$NVIDIA (NVDA.US)$CoreWeave is one of the main chip providers for running AI models. Core Scientific will provide an additional 112 megawatts of computing infrastructure to support CoreWeave's operation. The news stimulated Core Scientific to rise by 18.13% on Tuesday, reaching $9.71.

Core Scientific said that the agreement will bring an additional $2 billion in revenue to the company over the next 12 years, with the previous agreement expected to bring in $4.7 billion. The company plans to provide CoreWeave with about 382 megawatts of infrastructure by the first half of 2026 and may add 118 megawatts of power at other Core Scientific sites. These sites are expected to begin modifications by the second half of 2024 and will be fully operational by the first half of 2026. "Since we relisted in January, we have witnessed tremendous growth and are focused on developing best-in-class digital infrastructure," said Adam Sullivan, CEO of Core Scientific, in an interview with the media. "This infrastructure advantage enables us to diversify our revenue and reallocate some facilities to meet the growing demand for AI technology."

These sites are expected to begin modifications by the second half of 2024 and will be fully operational by the first half of 2026.

"Since we relisted in January, we have witnessed tremendous growth and are focused on developing best-in-class digital infrastructure," said Adam Sullivan, CEO of Core Scientific, in an interview with the media. "This infrastructure advantage enables us to diversify our revenue and reallocate some facilities to meet the growing demand for AI technology."

However, over the past few months, publicly traded Bitcoin mining companies have been shifting towards AI infrastructure business. This may be because mining has become less profitable since Bitcoin halved in April. These companies have spent a lot of resources building datacenters across the United States, which can be transformed to serve new customer categories.

However, some analysts point out that the transformation to AI is not as simple as reusing existing mining infrastructure and machines, because the demands and needs of the data network are different.

According to a report by Needham analysts in May, almost all infrastructure of mining companies currently needs to be "rebuilt from scratch to accommodate high-performance computing (HPC)".

Core Scientific management previously participated in a closed-door roundtable meeting with former President Trump on the mining industry, and Trump recently joined discussions on the integration of Bitcoin mining and AI.

According to a report by Morgan Stanley, as of June 15, the market cap of 14 major publicly traded US Bitcoin mining companies reached a historic high of $22.8 billion, benefiting from the transformation to AI.

For example, Bit Digital, a mining company$Bit Digital (BTBT.US)$Currently estimates that 27% of its revenue comes from AI. In June, the company announced that it had reached an agreement with a client to supply Nvidia GPUs in data centers in Iceland, which is expected to generate $92 million in revenue annually. Some of the funds used to pay for GPUs come from the sale of some of their cryptocurrency holdings.

In addition, Hut 8, headquartered in Miami$Hut 8 (HUT.US)$In June, it announced that it had raised $150 million in debt from private equity firm Coatue to help build its AI data center.

Core Scientific previously fell 7.5% due to the impact of the global stock market crash on cryptocurrency and AI companies. Cantor Fitzgerald analysts in a report said they saw this sell-off as a buying opportunity for publicly traded mining stocks.

In June this year, CoreWeave proposed to acquire Core Scientific for $1.02 billion, and shortly thereafter the two sides reached a preliminary agreement. Core Scientific rejected the offer. Core Scientific currently has a market cap of about $1.5 billion.

Editor/Somer