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United States Bitcoin (BTC) miner Core Scientific has signed a new colocation agreement to increase its data center hosting capacity by 75 megawatts (MW), a move intended to showcase the company’s ongoing commitment to boosting its infrastructure capabilities amid the ongoing bear market.
The new agreement will generate roughly $50 million in annual revenue for Core Scientific once the ASICs are fully deployed, the company announced Tuesday. The agreement includes provisions for prepayments that will allow the company to scale its infrastructure capabilities to host the additional servers.
Deployment of the additional ASICs is expected to commence in the third quarter, with full deployment scheduled to be completed by the end of the year.
“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,” said Mike Levitt, Core Scientific’s CEO.
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 amid the Bitcoin bull market, Core Scientific has fallen on harder times in recent months. In June, the company was forced to offload 7,202 BTC, worth roughly $167 million at the time, to continue funding operations.
Related: Breaking: Tesla sold 75% of Bitcoin holdings in Q2
Core Scientific currently has 8,497 BTC on its books, worth roughly $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.
On the topic of Tesla, the electric vehicle maker sold $936 million worth of BTC in the second quarter, which netted the company $64 million in profits.