What's Going On With Core Scientific Stock Tuesday?

Core Scientific Inc CORZ shares are trading higher. The company on Tuesday announced the exercise of an additional contract option by CoreWeave.

What Happened: Core Scientific, a digital infrastructure provider for Bitcoin BTC/USD mining and high-performance computing, announced Tuesday that AI hyperscaler CoreWeave exercised its option for additional infrastructure pursuant to the terms provided as part of its previously announced 200 megawatt (MW) hosting contract.

Under terms of the agreement, Core Scientific will modify its infrastructure to deliver approximately 112 of incremental MW for HPC to host CoreWeave’s Nvidia Corp NVDA GPUs.

Core Scientific said site modifications are expected to begin in the second half of 2024 as the company works towards operational status, which is anticipated in the first half of 2026.  

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it,” said Adam Sullivan, CEO of Core Scientific.

“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.”

See Also: Uber Q2 Earnings: Revenue And EPS Beat, 30M Trips Per Day, CEO Highlights Record Growth And More

The new contract with CoreWeave is expected to add approximately $2 billion in projected additional cumulative revenue over the contract’s 12-year term, bringing the total consideration up to approximately $6.7 billion.

Core Scientific is due to report earnings for the second quarter after the market close on Wednesday. The company is expected to report earnings of 3 cents per share and revenue of $128.574 million, according to estimates from Benzinga Pro.

On Monday, the company provided a mining update, noting that it mined 411 Bitcoin in July, bringing its total Bitcoin mined year-to-date up to 4,917. As of the end of the month, Core Scientific operated approximately 214,000 Bitcoin miners, representing a total energized hash rate of 25.3 EH/s.

CORZ Price Action: Core Scientific shares were up 9.61% at $9.01 at the time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.