U.S.-based crypto mining company Core Scientific has signed a colocation agreement to secure at least 75 megawatts (MW) of energy capacity for its data centres.
The new agreement involves the deployment of 325,000 ASIC servers (combined with self-mining and hosting), which the company says, if successfully deployed, will generate annual revenue of about $50 million for the company.
Core Scientific says prepayments will provide capital to fund the required infrastructure.
While the deal has been concluded, the facility to apply the blockchain is still under construction. According to the report, the miner installation will begin in the third quarter of 2022 and be completed around the end of 2022.
Core Scientific's CEO Mike Levitt said, "This new agreement continues customer confidence in Core Scientific's ability to deliver best-in-class blockchain data centre solutions. 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. We look forward to providing further details about our progress on August 11th, 2022, during our second-quarter earnings conference call.”
According to data from the Bitcoin Treasury, Core Scientific currently owns 8,497 bitcoins.
The price of bitcoin traded down 4.5% in 24 hours and is currently trading at $21,009.03, according to Coinmarketcap.
Core Scientific owns a total value of approximately $178.51 million at the current prices of bitcoin transactions.
Earlier this month, Core Scientific sold 7,202 bitcoins at an average price of $23,000, raising about $167 million. The company plans to use the funds for debt repayments, capital investments to increase data centre capacity, and payments for ASIC servers.
Core Scientific has also entered into a common stock purchase agreement of up to $100 million with investment bank B. Riley to weather the crypto winter.
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