The Nasdaq-listed Bitcoin miner expects to generate $50 million in annual revenue once the ASIC servers are fully operational.
American Bitcoin (BTC) mining company Core Scientific has signed a new colocation agreement to increase the hosting capacity of its data center by 75 megawatts (MW), a move intended to show the company’s continued commitment to boost its infrastructure capabilities amid the current bear market.
The new deal will generate about $50 million in annual revenue for Core Scientific once the ASICs are fully deployed, the company announced Tuesday. The deal includes advance payment provisions that will allow the company to expand its infrastructure capabilities to host the additional servers.
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Deployment of the additional ASICs is scheduled to begin in the third quarter and be completed by the end of the year.
“We remain focused on executing our 2022 plans to expand our capacity, support the continued growth of the Bitcoin network, and create value for all of our stakeholders, despite current market challenges,” said Mike Levitt, CEO of Core Scientific.
Top Bitcoin mining firm Core Scientific posted an 803% increase in revenue and 2,443% gain in gross profit in 2021, with CEO Mike Levitt touting the firm is “well positioned” for further growth in 2022. https://t.co/PPdI5MBnFI
— Cointelegraph (@Cointelegraph) March 30, 2022
After posting stellar fiscal 2021 results amidst the Bitcoin bull market, Core Scientific has hit a rough patch in recent months. In June, the company was forced to offload 7,202 BTC, worth approximately $167 million at the time, in order to continue funding its operations.
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Core Scientific currently has 8,497 BTC on its books, worth approximately $177.2 million at current prices, according to Bitcoin Treasuries. MicroStrategy and Tesla are the only publicly traded companies with more BTC on their balance sheets.
As for Tesla, the electric vehicle maker sold $936 million worth of BTC in Q2, giving it reported USD 64 million in profit.
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