AUSTIN - Core Scientific, Inc. (NASDAQ: CORZ), a key player in the high-performance computing (HPC) digital infrastructure space with a market capitalization of $2.73 billion, has announced an expansion of its partnership with CoreWeave, an AI Hyperscaler. This new agreement is set to bring an additional $1.2 billion in revenue to Core Scientific’s Denton, Texas location, enhancing its role as a leading provider of data centers tailored for specific applications and HPC workloads. According to InvestingPro data, the company has demonstrated impressive performance with a 192% return over the past year, despite recent market volatility.
The latest contract adds 70 megawatts (MW) of power to the Denton site, raising the total critical IT load to approximately 260 MW. This expansion is part of a broader collaboration between the two companies, which now encompasses roughly 590 MW of contracted HPC infrastructure across six Core Scientific sites. The company’s strong liquidity position is evident in its current ratio of 3.63, indicating robust ability to meet short-term obligations. Get deeper insights into Core Scientific’s financial health and access exclusive analysis through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
Adam Sullivan, CEO of Core Scientific, expressed enthusiasm about the strengthened partnership with CoreWeave, emphasizing the company’s commitment to developing large-scale HPC projects that support advanced AI and other low-latency applications. He highlighted the significance of the Denton site expansion, which positions Core Scientific as a major force in the North American GPU supercomputer landscape.
The agreement stipulates that Core Scientific will fund $104 million of the capital expenditure required for the additional 70 MW, calculated at $1.5 million per MW. CoreWeave will cover the remaining capital expenditures associated with this growth. Moreover, Core Scientific retains the option to extend the contract for two additional five-year terms.
Core Scientific’s contracted power now stands at 1.3 gigawatts, with plans to offer around 900 MW of gross capacity for HPC hosting. These facilities are strategically located near major cities and fiber lines to support a variety of compute workloads. The remaining 400 MW of contracted power is designated to support the company’s bitcoin mining operations.
This strategic move further cements Core Scientific’s position in the HPC data center market. The company is actively exploring new sites to increase its hosting capacity, with the potential to generate over $10 billion in cumulative revenue from its agreement with CoreWeave.
The information is based on a press release statement from Core Scientific. The company, which operates nine data centers across several states and is developing a new facility in Oklahoma, aims to adapt these centers to cater to AI and HPC hosting services under a series of contracts. With revenue of $557.68 million in the last twelve months and EBITDA of $152.31 million, analysts maintain a bullish outlook on the stock, with InvestingPro revealing multiple additional growth indicators and financial metrics available to subscribers.
Investors and stakeholders are advised to consider that this press release contains forward-looking statements, which involve certain risks and assumptions. These statements are not guarantees of future performance, and actual results may differ materially from those projected. Core Scientific has cautioned against placing undue reliance on these forward-looking statements, which are subject to risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission.
In other recent news, Core Scientific Inc. has been the focus of several significant developments. Compass Point adjusted its price target for Core Scientific to $20, maintaining a Buy rating, reflecting concerns over the company’s market valuation and anticipation of its upcoming financial results. The firm projects $590 million in revenue and $192 million in adjusted EBITDA for 2025, factoring in an $85 million capex credit. Meanwhile, Jones Trading maintained a Hold rating on Core Scientific, citing concerns over the company’s AI neocloud model and customer risks, though they noted that their 2025 and 2026 estimates remain mostly unchanged. Craig-Hallum initiated coverage with a Buy rating and a $24 price target, praising Core Scientific’s CoreWeave deal and highlighting its strong revenue contracts. Additionally, Core Scientific announced a $500 million convertible notes offering, aimed at institutional buyers, which could provide the company with additional funding. Compass Point later raised its price target to $26, noting the company’s potential customer diversification and increased power access at its Denton site. These developments suggest a dynamic period for Core Scientific, with various analysts weighing in on its future prospects.
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