Core Scientific sees revenue increase in 1Q24 after emerging from bankruptcy
Bitcoin mining company Core Scientific has released improved financial results for the first quarter after emerging from bankruptcy.
The company's total revenue is $179.3 million, an increase of $58.6 million over the same period in 2023.
Net income for the quarter was $210.7 million, up from a net loss of $0.4 million in the first quarter of 2023. This increase in net income was primarily due to a gain on liabilities totaling $143.8 million and a reduction in Chapter 11 financing costs. said the company.
Revenue from digital asset mining reached $150 million, while hosting revenue contributed $29.3 million, Core Scientific reported. Digital asset mining revenue above mining costs stood at $68.4 million, reflecting a 46% gross margin – compared to $25.4 million and a 26% gross margin in the same period last year.
Total mining revenue increased due to higher bitcoin prices and core mining capacity. According to the company, mining revenue was driven by a 134% increase in the value of Bitcoin and a 20% increase in the company's self-mining hash rate, which offset a 34% decrease in the amount of Bitcoin received due to 73%. Global Hash Rate Increase.
Handling revenue above handling expenses was $9.3 million, representing a gross margin of 32%, compared to $6.4 million and a gross margin of 28% in the prior year quarter. The higher hosting revenue was primarily attributed to the $6.7 million increase in hosting revenue from the onboarding of new digital asset mining customers. Operating expenses for the quarter were $16.9 million, down from $24.2 million in the same period last year.
“We believe our infrastructure is now well-positioned to take advantage of the energy and infrastructure demands for high performance, and we see this as a significant opportunity for continued growth for our business,” said Core Scientific CEO Adam Sullivan. Incoming call.
In the year In the first quarter of fiscal 2024, Core Scientific reportedly mined 2,825 bitcoins, more than any other publicly listed miner in North America. The company has approximately 745 MW of infrastructure that generated a total hash rate of 25.5 EH/s during the quarter, with 19.3 EH/s from self-mining and 6.2 EH/s from hosting during the quarter.
In the wake of Bitcoin's halving event – which cuts miners' earnings in half – Core plans to strategically buy mining equipment at low prices. According to Sullivan:
“We're expecting counter-cyclical miners to make purchases to take advantage of the improved pricing conditions. After the recent halving, we're seeing that dynamic with post-purchase rates being lower than pre-purchases.”
Core Scientific received court approval to emerge from bankruptcy and on Jan. 16 ended a 13-month restructuring process to list its shares on the Nasdaq.
