Core Scientific Records Financial Growth in Q1 Post-Bankruptcy, Boosted by Rise in Bitcoin Prices
Summary:
Emerging from bankruptcy, Bitcoin miner Core Scientific reported improvement in Q1 2024 finances with total revenue of $179.3 million, up from $120.7 million in the same period of 2023. Net income also grew from a loss of $0.4 million to a profit of $210.7 million, mainly due to a decrease in Chapter 11 costs and gains from obligations. The firm's digital asset mining revenue was a significant contributor, reaching $150 million, while mining revenue saw a notable increase due to rising Bitcoin prices and Core Scientific's increased mining capacity.
Core Scientific, a Bitcoin mining company, has witnessed significant financial growth in the first quarter following its emergence from bankruptcy. With total revenue soaring to $179.3 million, the company recorded a surge of $58.6 million compared to the same quarter in 2023. From a net loss of $0.4 million in the first quarter of 2023, the company saw its quarterly net income leap to $210.7 million. This net income surge is credited to a $143.8 million gain from obligations and a drop in Chapter 11 financing costs.
The company disclosed that the quarter's revenue from cryptocurrency mining reached $150 million, and hosting revenue contributed to the remaining $29.3 million. Revenues from crypto mining, surpassing mining cost, totaled $68.4 million. This mirrors a 46% gross margin, a significant jump from the 26% gross margin ($25.4 million) during the same timeframe the previous year. The overall mining revenue rose due to the increased price of Bitcoin and the company's expanded mining capacity.
According to Core Scientific, the increased revenue was coupled with a 20% hike in the firm's self-mining hash rate and a 134% surge in Bitcoin's price. Despite these increases, a global hash rate spike of 73% led to a 34% drop in the Bitcoin rewards received.
Hosting profits which exceeded hosting costs amounted to $9.3 million, marking a 4% gross margin rise from the same quarter last year, reaching 32%. This surge in hosting revenue was largely fueled by newly joined cryptocurrency mining clients, resulting in a $6.7 million hosting income boost. The quarterly operating expenditure of the company rested at $16.9 million, which saw a decrease from the $24.2 million expended in the same quarter of the previous year.
As per CEO Adam Sullivan, Core Scientific is set to capitalize on the increasing demand for power and infrastructure needed for high-performance computing, viewing this as a significant growth opportunity. During the initial fiscal quarter of 2024, the firm mined 2,825 bitcoins, reportedly the highest figure any North American listed miner has recorded to date. The company's infrastructure capacity stands at 745 megawatts, generating a total hash rate of 25.5 EH/s. This includes 19.3 EH/s from self-mining and 6.2 EH/s from hosting operations for the said quarter.
Following the halving event, which cuts Bitcoin miner's revenues in half, Core is strategizing to purchase mining equipment at reduced prices. As the firm emerged from bankruptcy and relisted its shares on Nasdaq on January 16, this signified the end of a 13-month long reconstruction process, according to Sullivan.
Published At
5/9/2024 12:34:01 AM
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