Bitcoin Mining Giant Partners with AMD: 96% Profit Margin Expected

Bernstein predicts that the AI partnership between Core Scientific and AMD will generate $14 billion in revenue and a record profit margin of 96% over 15 years.

Bitcoin mining giants are opening the door to a new era in the industry by converting their massive power infrastructures into AI data centers. According to a recent analysis report published by Bernstein, the strategic collaboration between Core Scientific (CORZ) and tech giant AMD stands out as one of the most concrete and profitable examples of this transformation. Covering a total capacity of 530 megawatts (MW), this massive deal proves that miners have become not just cryptocurrency producers, but also critical technology hosts.

Looking at the details of the agreement, 377 MW of the 530 MW capacity is leased directly to AMD, while the remaining 152 MW is allocated to a cloud computing platform supported by AMD’s credit financing. Bernstein analysts calculate that this structure will generate an average annual revenue of $900 million, yielding approximately $1.8 million per megawatt. Furthermore, should the partnership reach its full potential of 2.5 gigawatts, AMD will have the right (warrant) to purchase 30 million shares of Core Scientific at a price of $23.47 per share.

Record Profitability and New Financial Model in the AI Transformation

Bernstein expects the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for this partnership to reach an extraordinary level of 96%. While the firm anticipates an investment cost of between $11 million and $12 million per megawatt, the total project cost is estimated to reach $6 billion. In this financing model, chip manufacturers offering credit support to miners is considered a strategic move that lowers financing costs and reduces counterparty risk within the sector.

Other industry players taking similar steps, such as Hut 8 (HUT) and Riot Platforms (RIOT), are accelerating their AI pivot by collaborating with giants like Nvidia and AMD. Bernstein maintained its “Outperform” rating for Core Scientific and set a price target of $32. When the power licenses and ready-to-use infrastructure held by miners are combined with the intense demand for AI chips, it transforms into one of the most profitable business models in the crypto world.