Bitcoin mining company Core Scientific has revealed plans for a $1.2 billion data center expansion in partnership with artificial intelligence startup CoreWeave. The announcement follows the company’s fourth-quarter 2024 earnings report , which disclosed a net loss of $265.5 million. On February 26, Core Scientific published its Q4 and full-year financial results for 2024, attributing the significant loss primarily to a $224.7 million “non-cash mark-to-market adjustment” related to warrants and contingent value right liabilities. The company clarified that the loss did not reflect actual cash outflows but was an accounting adjustment due to the sharp increase in its stock price over the past year. Major Expansion Amid Financial Losses Despite its financial struggles, Core Scientific is moving forward with an ambitious data center expansion project in Texas. The company expects the initiative to generate $1.2 billion in contracted revenue, reinforcing its strategic shift toward application-specific data centers designed for high-performance computing (HPC) workloads, including AI. Core Scientific noted that the partnership with CoreWeave could ultimately lead to over $10 billion in cumulative revenue opportunities. “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,” CEO Adam Sullivan said. As part of the expansion, Core Scientific is increasing its capacity in Denton, Texas, aiming to build “one of the largest GPU supercomputers in North America.” Today, Core Scientific and @CoreWeave announced a $1.2 billion expansion at Core Scientific's Denton, Texas site. -Core Scientific and CoreWeave announce 70-megawatt (MW) expansion at the Denton, TX site -Expands to ~ 590 MW of contracted HPC infrastructure across 6 sites… pic.twitter.com/8Mz0mlcKa6 — Core Scientific (@Core_Scientific) February 26, 2025 Following the announcement, Core Scientific’s stock price surged by 12.29% in after-hours trading, rising from $10 to $11.25, according to Google Finance data . The move highlights a growing trend among Bitcoin mining firms diversifying into AI and high-performance computing. Companies like Hive Digital, Hut 8, and Iris Energy have already pivoted part of their operations toward AI hosting, according to asset manager VanEck. Similarly, Bitcoin miner TeraWulf recently sold its stake in a mining facility for $92 million to focus on AI infrastructure. US Dominates Bitcoin Mining with Over 40% of Global Hashrate At the close of 2024, the United States solidified its position as a leader in Bitcoin mining, accounting for over 40% of the global hashrate — the total computing power securing the Bitcoin network. U.S.-based mining pools Foundry USA and MARA Pool played a significant role, collectively mining more than 38.5% of all Bitcoin blocks. Foundry USA increased its hashrate from 157 exahashes per second (EH/s) at the beginning of the year to approximately 280 EH/s by December. The growth cemented Foundry USA’s position as the largest mining pool globally, with control over 36.5% of the Bitcoin network’s total hashrate. As reported, Jack Dorsey’s Block has also announced plans to ramp up investments in its Bitcoin mining initiative and self-custody Bitcoin wallet. At the time, the company said it would reallocate resources from its canceled “Web5” project, TBD, and cut investments in the music-streaming service, Tidal, to support this move. The post Core Scientific Announces $1.2B Data Center Expansion Despite $265M Q4 Loss appeared first on Cryptonews .
