Core Scientific makes a comeback with increased revenues in the first quarter

Bitcoin miner Core Scientific has announced a significant increase in revenues and gross margin in the first quarter of 2024, just months after emerging from bankruptcy. The company recorded an increase of over $58 million year-on-year.

Core Scientific rebounds with higher revenues after emerging from bankruptcy

Core Scientific, one of the main players in Bitcoin mining in North America, has published encouraging financial results for the first quarter 2024. The company posted total sales of 179.3 million, posting a remarkable increase of $58.6 million $ compared with the same period in 2023.

This performance is due in particular to the increase in mining revenues, which reached $150 million, and to the $29.3 million contribution from hosting revenues.

Net income for the quarter amounted to $210.7 milliona dramatic turnaround from the net loss of $0.4 million recorded in the first quarter of 2023. This improvement was mainly due to bond gains totalling $143.8 million and lower financing costs related to the Chapter 11 bankruptcy proceedings.

Gross margin on mining revenues reached 46%, compared with 26% for the same period last year. This increase is attributed to the rise in the price of Bitcoin (+134%) and the hash rate (+20%), which offset the reduction in the quantity of Bitcoin received due to the increase in the global hash rate.

A solid infrastructure and promising growth prospects

In the first fiscal quarter of 2024, Core Scientific a produced 2,825 self-exploited bitcoins, positioning himself as the first miner in North America. The company has approximately 745 megawatts of infrastructure which generated a total hash rate of 25.5 EH/s, including 19.3 EH/s from self-operation and 6.2 EH/s from hosting operations.

Following the Bitcoin Halving, which halved miners’ revenues, Core Scientific anticipates strategic purchases of mining equipment at lower prices. The company is already anticipating a favorable dynamic, with post-purchase prices lower than before the halving.

After a tumultuous 2023, marked by financial difficulties that forced Core Scientific to declare bankruptcy and sell off part of its machines to pay off its debts the company seems to have found a new lease of life. Its successful emergence from bankruptcy and reintroduction on the Nasdaq in January 2024 mark the start of a promising new chapter for this Bitcoin mining giant, now ready to take on new challenges and consolidate its position as market leader.