Bitcoin Miner Core Scientific Signs 75MW Hosting Deal

Once all the ASIC servers are fully deployed, the agreement is seen generating about $50 million in annual revenue, said the company.

AccessTimeIconJul 26, 2022 at 3:11 p.m. UTC
Updated May 11, 2023 at 5:40 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Core Scientific (CORZ) – the largest bitcoin (BTC) miner by hashrate, or total computing power – signed a new deal with an undisclosed party to host 75 megawatts' worth of mining rigs.

As part of the agreement, Core is getting prepayments that will fund the additional infrastructure needed to host the miners, the company said in a press release.

  • What's the Biggest Misconception People Have About Bitcoin Mining?
    00:39
    What's the Biggest Misconception People Have About Bitcoin Mining?
  • What You Need to Know About the Bitcoin Halving
    01:47
    What You Need to Know About the Bitcoin Halving
  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
    01:17
    How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
  • Hosting is a service that data centers provide to crypto miners so that customers can store their mining rigs and mine their preferred digital assets for a fee without having to build the accompanying infrastructure themselves.

    Core has a blend of self-mining and hosting operations. In the first quarter, the company earned $33.2 million from its hosting business, which was about 17% of its total revenue, according to a recent presentation.

    In recent months, demand for hosting crypto miners has seen an uptick as infrastructure and power supply-related delays – as well as lack of capital – have caused bottlenecks for miners who are often now finding themselves with more mining rigs than available power.

    Core said the server deployments for the new hosting deal will start in the third quarter, with estimated completion expected this year. This addition will have Core operating about 325,000 rigs – self-mining and hosting – by the end of 2022.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about