Why Core Scientific Shares Are Trading Higher Tuesday

Core Scientific, Inc. CORZ stock is moving higher after the company it excersied its first option contract with CoreWeave for additional infrastructure to host high performance computing operations.

The Details: Core Scientific will adjust a total of 100 MW of its infrastructure to deliver about 70 MW to host CoreWeave’s NVIDIA GPUs.

The new 12 year contract with CoreWeave is anticipated to boost earnings and increase shareholder value, contributing an extra $1.225 billion in projected cumulative revenue.

Under the agreement, CoreWeave will finance the capital investments required for the infrastructure modifications. Once completed, CoreWeave will provide approximately 270 MW of high-performance computing infrastructure in total.

The changes are expected to begin in the second half of 2024 and take approximately a year to complete.

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CORZ Price Action: Core Scientific shares are trading 8.65% higher at $9.48 at the time of writing per data from Benzinga Pro.

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