Core Scientific trades bitcoin mining for a $14B AMD deal

Core Scientific emerged from Chapter 11 bankruptcy in January 2024 as a bitcoin miner. On July 28, it signed a 15-year, 529 MW AI infrastructure lease with AMD carrying a potential $14 billion in base contracted revenue — and that's just the starting terms, CoinDesk reports.

• Expansion option: AMD can reserve up to another 1,925 MW of capacity through the end of 2028 — bringing total capacity to roughly 2.5 GW and potential deal revenue to $24 billion-plus
• First customer AI deployments are expected in 2027
• Sites include Pecos and Hunt County in Texas, Muskogee in Oklahoma, Auburn in Alabama, and Dalton in Georgia
• AMD received warrants to buy 30 million Core Scientific shares at $23.47 — 6.5 million of which vest immediately upon signing

Meanwhile, Core Scientific's bitcoin mining business is collapsing fast: self-mining revenue fell 66% in a single quarter to $21.5 million, while colocation — leasing capacity to other operators' servers, mostly for AI — now accounts for 83% of total revenue, $136.7 million out of $164.2 million in Q2. The company also terminated its ASIC chip supply agreement with Block, taking a $41.9 million charge, but still holds 848 BTC on its balance sheet (about $49.7 million), Yahoo Finance notes.

We've covered how bitcoin miner stocks have surged on AI deals, even as the industry still needs $50 billion more to fully pivot — bitcoin miner stocks are surging on AI deals; Core Scientific is now one of the clearest examples of that shift: its shares rose nearly 6% in pre-market trading, while AMD's stock actually dipped 4%.

For a company that emerged from bankruptcy under a pile of debt just three years ago, bitcoin mining was a lifeline. Judging by the current numbers, it's now closer to ballast the company is trying to shed as fast as it can.

This piece is informational, not a recommendation to buy, sell, or hold any asset.