Mining company Core Scientific aims to achieve a valuation of $25 billion to $30 billion with new AI data center contracts

In an interview with analysts, Core Scientific CEO Sullivan said Bitcoin miners could achieve "exponential" growth with its AI data center services in the coming years. However, this depends on whether the company can prove its ability to deliver gigawatt-scale AI data centers to customers beyond its initial customer CoreWeave. "Signing another 500MW or 1GW of contract deals in the next few years will make us no longer a $2.5 billion company, but potentially a $25 billion to $30 billion company," Sullivan said. Sullivan, a former investment banker, joined the company in April 2023, four months into Chapter 11 bankruptcy proceedings, after Bitcoin prices plummeted in the 2022 bear market, when energy prices soared. However, after successfully emerging from bankruptcy in January this year, Core Scientific signed a 12-year agreement with AI hyperscaler CoreWeave, with total revenue that could reach up to $3.5 billion. Sullivan said Core Scientific had previously worked with CoreWeave on Ethereum GPU mining before switching to the proof-of-stake consensus mechanism, and reopened conversations with the company about the possibility of a switch in late 2023. (The Block)