Core Scientific posts $265M Q4 loss, unveils $1.2B data center plan

Core Scientific Unveils $1.2 Billion Data Center Expansion in Partnership with CoreWeave

Introduction

Core Scientific, a leading Bitcoin mining company, has announced a $1.2 billion data center expansion in partnership with artificial intelligence startup CoreWeave. The move comes after the company’s fourth-quarter 2024 earnings report, which showed a net loss of $265 million.

Fourth-Quarter and Full-Year 2024 Results

On February 26, Core Scientific published its fourth-quarter and full-year results for 2024. The company reported a net loss of $265.5 million in Q4, largely attributed to a $224.7 million "non-cash mark-to-market adjustment to warrants and other contingent value right liabilities." The adjustment was necessary due to a significant year-over-year increase in the company’s stock price, requiring an update of the accounting of financial obligations. Core Scientific emphasized that the loss did not represent actual cash outflows.

Data Center Expansion

Alongside its earnings report, Core Scientific announced a data center expansion in Texas in collaboration with CoreWeave. The company expects the project to generate $1.2 billion in contracted revenue as it positions itself as a provider of application-specific data centers for high-performance computing (HPC) workloads.

Potential Revenue

Core Scientific believes it is positioned to capitalize on the growing demand for energy-dense and application-specific data centers. The company’s new agreement anticipates $1.2 billion in revenue, but it could generate over $10 billion in potential cumulative revenue with CoreWeave.

CEO Comments

"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," said Core Scientific CEO Adam Sullivan.

GPU Supercomputer

The company is building "one of the largest GPU supercomputers in North America" in Denton, Texas, as part of its data center expansion.

Stock Price Impact

Google Finance data shows that the company’s stock price rose by 12.29% from $10 to $11.25 during after-hours trading following its data center announcement.

FAQs

Q: What is Core Scientific’s net loss for Q4 2024?
A: $265.5 million

Q: What is the purpose of the data center expansion?
A: To provide application-specific data centers for high-performance computing (HPC) workloads.

Q: How much revenue does Core Scientific expect to generate from the data center expansion?
A: $1.2 billion

Q: What is the potential cumulative revenue with CoreWeave?
A: Over $10 billion

Q: What is the significance of Core Scientific’s stock price increase?
A: The company’s stock price rose by 12.29% from $10 to $11.25 during after-hours trading following its data center announcement.