Core Scientific Inks Deal to Host 75 MW Worth of Mining Rigs

Core Scientific, the largest Bitcoin miner by hashrate, or total computing power, signed a deal with an undisclosed party to host 75 megawatts (MW) worth of mining rigs, according to a press release.

“This new agreement demonstrates continued customer confidence in Core Scientific’s ability to deliver best-in-class blockchain data center solutions,” said Core’s CEO, Mike Levitt. “We remain focused on executing our 2022 plans to expand our capacity, support the Bitcoin Network’s continued growth and create value for all our stakeholders, despite current market challenges.”

In addition, Core will receive prepayments from the customer to fund the additional infrastructure needed to host the miners, the press release said.

Hosting is a service provided by crypto miners to customers, allowing them to store their mining rigs and mine their preferred digital assets for a fee, without having to build the infrastructure themselves. 

Core is the largest Bitcoin mining operator in the Western Hemisphere, with 457MW of operational power, enough to power a small city, according to Core data. They are also key players in the hosting business, earning $33.2 million from hosting in the first quarter of this year. That totals about 17% of their total revenue, according to their Q1 presentation in May.  

In recent months, there has been an increased demand for hosting crypto miners due to a lack of capital and a limited amount of power. 

The press release also noted that server deployments for the new hosting deal will start in the third quarter, with estimated completion expected later this year. This new addition will have Core operating roughly 345,000 rigs by the end of 2022. 

Author: Tyler Irvin

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