Core Scientific, a leading Bitcoin mining company, has demonstrated significant financial growth in the first quarter of 2024 since emerging from bankruptcy, according to its latest financial report.
Core Scientific reported a total revenue of $179.3 million for the quarter, marking an impressive increase of $58.6 million compared to the same period in 2023. This substantial growth in revenue underscores its successful turnaround since emerging from bankruptcy.
Moreover, Core Scientific reported a net income of $210.7 million for the first quarter, a substantial improvement from the net loss of $0.4 million reported in Q1 2023. This rise in net income was primarily attributed to gains from obligations amounting to $143.8 million and a drop in Chapter 11 financing expenses.
As per the company’s financial report, revenue from Bitcoin mining reached $150 million, while hosting revenue contributed $29.3 million.
Of particular note is the Bitcoin mining revenue in excess of mining costs, which stood at $68.4 million, reflecting a remarkable 46% gross margin. This is a significant improvement from the $25.4 million in revenue and 26% gross margin reported in the same period of 2023.
Core Scientific’s Enhanced Mining Capacity
The increase in overall revenue from mining can be attributed to higher bitcoin prices and the company’s enhanced mining capacity.
Core Scientific acknowledged that mining revenue was primarily driven by a 134% increase in BTC price and a 20% increase in the company’s self-mining hash rate.
Hosting revenue in excess of hosting costs also saw a notable increase, reaching $9.3 million with a 32% gross margin, compared to $6.4 million and a 28% gross margin in Q1 2023.
The surge in hosting revenue was primarily attributed to the onboarding of new mining clients, which drove a $6.7 million increase in hosting revenue.
CEO Adam Sullivan expressed confidence in the company’s infrastructure, stating that it is well positioned to meet the growing demand for power and infrastructure required for high-performance computing. He explains:
“Our infrastructure is well positioned to take advantage of the enormous demand for power and infrastructure required for high-performance computing, and we see this as the next major growth opportunity for our business.”
Following the Bitcoin halving event, which cut miners’ rewards by half, Core Scientific planned strategic mining equipment purchases at lower prices.
Sullivan added: “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.”
During the fiscal first quarter of 2024, Core Scientific reported that it self-mined 2,825 bitcoin, reportedly more than any other publicly listed miner in North America.
Notably, the company owns around 745 megawatts of infrastructure that generates a total hash rate of 25.5 EH/s, comprising 19.3 EH/s for self-mining and 6.2 EH/s for hosting operations during the quarter.
It’s worth mentioning that Core Scientific received court approval to emerge from bankruptcy and relist its shares on the Nasdaq on January 16, marking the end of a successful 13-month restructuring process.
The company’s solid performance in Q1 2024 positions it as a leading player in the Bitcoin mining industry.
