Bitcoin mining company Core Scientific has announced improved financial results for the first quarter since emerging from bankruptcy. The company reported a total revenue of $179.3 million, representing an increase of $58.6 million compared to the same period in 2023. Net income for the quarter reached $210.7 million, a significant improvement from the net loss of $0.4 million reported in the first quarter of 2023. This rise in net income was primarily due to gains from obligations totaling $143.8 million and a decrease in Chapter 11 financing expenses, according to the company.
Revenue from digital asset mining reached $150 million, with hosting revenue contributing $29.3 million. Core Scientific also revealed that digital asset mining revenue in excess of mining costs stood at $68.4 million, reflecting a 46% gross margin. This is a significant increase compared to the same period in the previous year, which saw revenue of $25.4 million and a 26% gross margin.
The overall increase in mining revenue can be attributed to higher Bitcoin prices and Core’s mining capacity. The company stated that mining revenue was driven by a 134% increase in the price of Bitcoin and a 20% increase in its self-mining hash rate. These factors offset a 34% reduction in the amount of Bitcoin received due to a 73% rise in the global hash rate.
Hosting revenue also saw significant growth, with revenue in excess of hosting costs reaching $9.3 million and a 32% gross margin. This is an improvement from the first quarter of the previous year, which saw revenue of $6.4 million and a 28% gross margin. The increase in hosting revenue was primarily attributed to the onboarding of new digital asset mining clients, which drove a $6.7 million increase in hosting revenue. Operating expenses for the quarter totaled $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 and its ability to meet the growing demand for power and infrastructure in high-performance computing. He sees this as a significant growth opportunity for the business.
In the first quarter of 2024, Core Scientific produced a total of 2,825 self-mined Bitcoin, reportedly more than any other publicly listed miner in North America. The company owns approximately 745 megawatts of infrastructure, generating 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, bringing an end to a 13-month restructuring process.