Core Scientific has locked in an artificial intelligence deal that returns 75% — a figure analysts at Bernstein describe as an outlier in the bitcoin mining space. The deal marks a sharp departure from the single-digit margins most miners see today and underscores how infrastructure built for crypto can be repurposed for high-performance computing workloads.
The deal and the return
Core Scientific, one of the largest publicly traded bitcoin miners in North America, signed the agreement with an unnamed AI customer. The 75% return is calculated on the cost of power and operations, according to the company. That’s well above the 30% to 40% margins typical for bitcoin mining after the halving compressed profitability.
The miner has been retrofitting some of its data centers to handle AI and machine learning workloads, a strategy several peers have pursued as the crypto bear market dragged on. But few have disclosed returns this high.
Bernstein’s take
In a research note this week, Bernstein analysts said the deal is an outlier and not easily replicable across the sector. They pointed to Core Scientific’s existing infrastructure, access to cheap power, and the specific nature of the AI workload as factors that made the return possible. “This is not a template every miner can follow,” the analysts wrote. “It reflects a unique combination of location, hardware, and customer demand.”
The firm also noted that strategic partnerships and infrastructure readiness were critical. Core Scientific had already invested in liquid cooling and high-bandwidth networking — upgrades that most mining sites lack.
The deal gives other miners a data point, but not a roadmap. Most mining facilities are built for ASICs, not GPUs or AI servers. Retrofitting costs are high, and the AI market is competitive. Still, the 75% return is a reminder that the same power and real estate that secures bitcoin can generate revenue from other sources.
Core Scientific’s stock rose on the news, though the broader market reaction was muted. The company has not said when the AI contract begins or how long it runs.
Bitcoin miners have been under pressure since the April 2024 halving cut block rewards in half. Many have diversified into AI, cloud computing, or even energy trading. Core Scientific’s deal is the most concrete example yet that the pivot can pay off — at least for one company, under the right conditions.
Whether other miners can match that return is an open question. Bernstein’s “outlier” label suggests the answer is no, at least for now.
