Bitcoin Mining Giant Makes Massive $14 Billion Move with AMD: Shifting to a New Sector
Core Scientific has opened a new $14 billion revenue stream by pivoting away from Bitcoin mining through a massive 15-year AI infrastructure deal signed with AMD.
Data center operator Core Scientific (CORZ) announced the allocation of a massive 529-megawatt capacity as part of its strategic partnership with tech giant AMD. This move indicates that the company is scaling down its traditional mining operations and fully pivoting toward artificial intelligence (AI) infrastructure, signaling a radical transformation in the industry.
Under the agreement, AMD will directly lease 377 megawatts of capacity at facilities in Texas and Oklahoma, while an unnamed cloud provider has reserved 152 megawatts with AMD‘s support. This 15-year contract is expected to generate more than $14 billion in base revenue. Additionally, AMD has secured the right to reserve an additional 1,925 megawatts of capacity under certain conditions, meaning the partnership could expand to a total of 2.5 gigawatts.
Radical Pivot in Bitcoin Mining and Financial Transformation
The company’s transformation is more than just a partnership; it also proves they are abandoning their past mining goals. Core Scientific terminated its 15 EH/s mining chip agreement with Block (XYZ), recording a loss of $41.9 million. This decision highlights the company’s commitment to shifting its resources to the AI sector, which it views as more profitable, and demonstrates that this strategic pivot is irreversible.
Financial data also clearly supports this shift. In the second quarter, 83% of the company’s total revenue came from hosting services, while self-mining revenues dropped 66% to $21.5 million. As of the end of June, the company held 848 Bitcoin (BTC) worth $49.7 million and also provided AMD with warrants granting the right to purchase up to 30 million shares at $23.47 per share. The complex data center infrastructure in the image symbolizes that the company is no longer just a miner, but a massive provider of computing power.