Core Scientific Inc (CORZ) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Total Revenue: $95.4 million for the third quarter.

  • Bitcoin Mined: 1,115 Bitcoin in the third quarter.

  • Digital Asset Self Mining Revenue: $68.1 million.

  • Digital Asset Hosted Mining Revenue: $16.9 million.

  • HPC Hosting Revenue: $10.3 million.

  • Gross Loss: $0.2 million for the quarter.

  • Operating Loss: $41 million for the quarter.

  • Net Loss: $455.3 million, primarily due to noncash mark-to-market adjustments.

  • Adjusted EBITDA: $10.1 million, representing 11% of revenue.

  • Power Cost: $0.038 per kilowatt hour, with an expected average of $0.042 to $0.044 per kilowatt hour for 2024.

  • Self Mining Fleet: Approximately 175,000 miners operated as of September 30, 2024.

  • Convertible Note Offering: $460 million completed, reducing interest rate to 3%.

  • Cash and Cash Equivalents: $253 million at the end of the quarter.

  • HPC Hosting Contract Value: Projected aggregate total potential revenue of approximately $8.7 billion over 12 years.

  • Direct Cash Cost to Mine Bitcoin: $42,351 per Bitcoin.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Core Scientific Inc (NASDAQ:CORZ) successfully contracted all 500 megawatts of critical IT load for HPC hosting, securing significant revenue potential.

  • The company completed a $460 million convertible note offering, which improved its capital structure by refinancing debt and increasing cash reserves.

  • Core Scientific Inc (NASDAQ:CORZ) expanded its capacity through new site acquisitions and existing site expansions, including a new data center in Alabama.

  • The company reported a 117% increase in the price of Bitcoin, which positively impacted its digital asset self-mining revenue.

  • Core Scientific Inc (NASDAQ:CORZ) is actively pursuing additional power allocations at existing sites, potentially adding up to 300 megawatts of critical IT load.

Negative Points

  • Core Scientific Inc (NASDAQ:CORZ) reported a net loss of $455 million for the third quarter, primarily due to non-cash mark-to-market adjustments.

  • The company faced a 62% decrease in the number of Bitcoin earned during the quarter, impacting digital asset self-mining revenue.

  • Operating expenses increased by $13.5 million year-over-year, driven by personnel expenses, site startup costs, and stock-based compensation.

  • Gross margins for digital asset self-mining were negative, reflecting challenging Bitcoin mining economics post-halving.

  • The company anticipates no further CapEx for Bitcoin mining this year, indicating potential limitations in expanding its mining fleet.