Bitcoin mining firm Core Scientific recorded significant improvements in its financial performance for the first quarter since emerging from bankruptcy.
In its latest earnings report, the company reported total revenue of $179.3 million in the first quarter of 2024, a substantial increase of $58.6 million compared to the same period in 2023. Its net income soared to $210.7 million, marking a significant turnaround from the net loss of $0.4 million recorded in the first quarter of 2023.
According to the company, the increase in net income was mainly due to realizing gains of $143.8 million from fulfilling “certain financial obligations” and reducing its Chapter 11 financing expenses.
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The increase in overall mining revenue was attributed to higher Bitcoin prices—the crypto’s price increased 134% during the period—and expanded mining capacity. The company reported a 20% rise in its self-mining hash rate.
The miner’s hosting revenue also exceeded costs and reached $9.3 million, with a 32% gross margin, compared to $6.4 million and a 28% gross margin in the previous year’s first quarter.
The growth in hosting revenue was primarily due to acquiring new digital asset mining clients, which resulted in a $6.7 million increase in revenue. On the other hand, its operating expenses for the quarter totalled $16.9 million, down from $24.2 million in the same period last year.
Core Scientific claimed to have mined the highest number of Bitcoins among all publicly listed miners in North America during the same period, with 2,825 Bitcoin in total. The company’s infrastructure, comprising approximately 745 megawatts, generated a hash rate of 25.5 EH/s, including 19.3 EH/s from self-mining and 6.2 EH/s from hosting operations.
RELATED: Core Scientific Mined More than 19,000 Bitcoin Tokens in 2023 Amidst Bankruptcy Exit Efforts %
CEO Adam Sullivan highlighted the company’s strategic positioning to capitalize on the growing demand for power and infrastructure required for high-performance computing, identifying it as the next major growth opportunity. Additionally, Core Scientific revealed plans to purchase equipment following the Bitcoin halving event and leveraged improved pricing dynamics.
“We are waiting to make countercyclical miner purchases to take advantage of improved pricing. After the recent halving, we are already seeing that dynamic take shape, with post-purchase pricing lower than pre-purchase.“
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