Core Scientific, a Bitcoin mining firm, has announced significant improvements in its financial performance for the first quarter since emerging from bankruptcy. The company reported a total revenue of $179.3 million, representing a $58.6 million increase compared to the same period in 2023.
In terms of net income, Core Scientific achieved $210.7 million for the quarter, which is a notable improvement from the net loss of $0.4 million reported in the first quarter of 2023. The increase in net income can be attributed to gains from obligations amounting to $143.8 million and a reduction in Chapter 11 financing expenses, according to the company.
Core Scientific revealed that revenue from digital asset mining contributed $150 million, while hosting revenue accounted for $29.3 million. The mining revenue exceeded the mining costs by $68.4 million, resulting in a gross margin of 46%. In comparison, the previous year’s figures stood at $25.4 million and a 26% gross margin.
The overall increase in mining revenue can be attributed to higher Bitcoin prices and Core Scientific’s mining capacity. The company stated that mining revenue was driven by a 134% surge in the price of Bitcoin and a 20% increase in its self-mining hash rate. These factors offset the 34% reduction in the amount of Bitcoin received due to a 73% rise in the global hash rate.
Hosting revenue, which exceeded hosting costs by $9.3 million, achieved a gross margin of 32%. In the previous year, the figures were $6.4 million and a 28% gross margin. The higher hosting revenue was primarily due to the addition of new digital asset mining clients, resulting in a $6.7 million increase in hosting revenue. Operating expenses for the quarter amounted to $16.9 million, down from $24.2 million in the same period last year.
Core Scientific’s CEO, Adam Sullivan, expressed confidence in the company’s infrastructure to meet the growing demand for power and infrastructure necessary for high-performance computing. He sees this as the next major growth opportunity for the business.
During the first quarter of 2024, Core Scientific mined a total of 2,825 Bitcoin, reportedly surpassing any other publicly listed miner in North America. The company owns approximately 745 megawatts of infrastructure, which generated a total hash rate of 25.5 EH/s. This includes 19.3 EH/s from self-mining and 6.2 EH/s from hosting operations during the quarter.
Following the Bitcoin halving event, which halves miners’ revenue, Core Scientific plans to strategically purchase mining equipment at lower prices. The company received court approval to emerge from bankruptcy and relist its shares on the Nasdaq on January 16, thereby concluding a 13-month restructuring process.