Core Scientific shares fall 4% after reporting revenue decline in Q4 2023 results

Crypto mining firm Core Scientific (CORZ) has reported a year-over-year drop in its Q4 2023 results and a sharp drop in net loss.

In its March 12 earnings release, Core Scientific said last year's total revenue was $502.4 million, down $137.9 million from $640 million in 2022.

The annual revenue decline is due to the company's exit from the mining sales business and an increase in the global bitcoin hash rate in 2023, he said.

Net income in the fourth quarter of 2023 was $141.9 million, an increase of $20.7 million from Q4 2022.

In addition, the company projects a net loss of just $246.5 million for 2023 compared to a net loss of $2.14 billion in 2022. In Q4 2023, net loss totaled $195.7 million, down from $434.9 million in Q4 2022.

Core Scientific has re-listed on NASDAQ after emerging from a bankruptcy crisis and a 13-month restructuring process amid falling Bitcoin (BTC) prices, rising energy costs and $400 million in debt related to the bankrupt crypto. Lender Celsius.

The company reported mining a total of 13,762 BTC last year.

Core Scientific It fell nearly 4.6% on March 12, ending the day at $3.54 a share.

That decline continued in after-hours trading, falling an additional 4% to $3.40, Google Finance reported.

A Core Scientific spokesperson told Cointelegraph that the miner was not overly concerned about the market's quick reaction to its Q4 earnings and indicated that price action would be across the board for publicly traded Bitcoin miners over the past few weeks.

The largest publicly traded Bitcoin miner, Marathon Digital ( MARA ), fell 21 percent last month, while rival miner Riot Blockchain ( RIOT ) fell 25 percent over the same period.

Bitcoin mining investors fear halving

Blockware Solutions chief analyst Mitchell Askew told Cointelegraph on March 1 that the “most logical” explanation for the decline in mining share prices comes from investors wary of deploying capital to the companies before bitcoin declines — an event that would reduce rewards for miners. Half.

On January 26, Cantor Fitzgerald released a report stating that many Bitcoin mining companies may struggle to stay profitable following the Bitcoin halving. At the time of the report, Bitcoin traded at around $40,000.

Related: Bitcoin's Rally to $72K Takes Mining Earnings to Record Highs

At the current price of Bitcoin at $72,000, none of the firms listed in the report will be in the red, even if they decline – assuming there is no change in hash rate and Bitcoin's price will hold above $62,000 for the end of April halving.

“The halving is well-timed,” a Core Scientific spokesperson said, adding that it has been updating miners with new Bitmain S21 models and focusing on increasing hash rate usage over time.

Several analysts at Core Scientific have flipped on a broader trend of renewed market interest for crypto mining companies following the surge in BTC and other cryptocurrencies in recent months.

Capital markets firm HC Wainright upgraded their rating on CORZ from “neutral” to “buy” in an investment note on January 25th.

Investment banking research firm Compass Point also upgraded CORZ from a “neutral” rating to a “buy” rating and set a $8.50 price target on the stock, according to MarketBeat data for January 31.

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