Core Scientific Announces Fiscal Fourth Quarter and Full Fiscal Year 2023 Results
- Core Scientific reported a total revenue of $141.9 million for the fiscal fourth quarter of 2023, representing a $20.7 million increase from the previous year.
- The company achieved an adjusted EBITDA of $57.5 million in the fiscal fourth quarter of 2023, showing significant growth compared to the same period in 2022.
- Despite a decrease in total revenue for fiscal year 2023, Core Scientific reported an improvement in adjusted EBITDA to $170.0 million, showcasing strong financial performance.
- Core Scientific's CEO, Adam Sullivan, emphasized the company's position as a leader in bitcoin mining in North America and highlighted plans for self-mining growth and expansion into AI computing.
- The company has completed all 2024 payments for new bitcoin miners and is accelerating the deployment of new Bitmain S21 miners to enhance profitability.
- Core Scientific's financial results reflect a strategic focus on improving operational efficiency, rationalizing hosting client base, and optimizing miner locations in data centers.
- None.
Insights
The reported financial results of Core Scientific, Inc. indicate a mixed performance with both positive and negative aspects. The increase in total revenue for the fiscal fourth quarter of 2023 by 17% compared to the same period in the prior year suggests an upward trajectory in the company's earnings potential. This is significant as it reflects the company's ability to grow its revenue streams despite the volatile nature of the cryptocurrency market.
However, the net loss of $195.7 million in the same quarter, despite being an improvement from the previous year, raises concerns about the company's current profitability. It is important to note that the net loss includes non-cash impairment charges, which can be a strategic accounting measure to adjust the value of assets on the balance sheet. The improved adjusted EBITDA, which excludes these non-cash items, indicates better operational efficiency and could be a more reliable indicator of the company's financial health.
The decrease in total revenue for the fiscal year 2023 by 22% compared to the previous year may be alarming to stakeholders, as it implies a contraction in the company's business scale. This decline is partially attributed to the company's strategic exit from the equipment sales business, which may have been a lower-margin or less strategic segment. A closer examination of the company's cost structure, which shows a decrease in cost of revenue and operating expenses, suggests that the company is actively managing its expenses to improve profitability.
Core Scientific's strategic positioning as the leading self-miner of bitcoin in North America and its ownership of the largest bitcoin mining infrastructure in terms of operating megawatts are considerable competitive advantages. The company's focus on energy efficiency improvements and the development of a growth plan for more than 20 EH/s of new self-mining hash rate are forward-looking steps that may position it well for the upcoming bitcoin halving event, which historically impacts mining profitability.
Furthermore, the company's diversification into hosting services with a strategic contract with CoreWeave, Inc. suggests an adaptive business model that is not solely reliant on bitcoin mining. This diversification into high-performance computing, particularly for AI computing demands, can be seen as a hedge against the volatility of cryptocurrency markets, potentially stabilizing revenue streams.
However, the termination of contracts with less profitable hosting clients and the rationalization of the hosting client base indicate a strategic pivot that may affect short-term revenue but could lead to improved profitability in the long run. Investors may view such strategic realignments positively if they lead to a more sustainable and focused business model.
Core Scientific's focus on improving self-mining fleet energy efficiency to 27.94 joules per terahash is a noteworthy development within the cryptocurrency mining industry. Energy efficiency is a critical factor in mining profitability, especially in light of rising energy costs and environmental concerns. The company's ability to mine 19,274 bitcoins while operating a hash rate of 23.2 EH/s demonstrates significant operational capability in a market where increased global Bitcoin network hash rate typically translates to higher mining difficulty.
The company's proactive management of financial obligations, such as completing all 2024 payments for new bitcoin miners and accelerating the delivery and deployment of Bitmain S21 miners, indicates a strong liquidity position and operational readiness. This could be advantageous in maintaining competitive hash rates and capitalizing on favorable market conditions.
The mention of the upcoming bitcoin halving, an event that reduces the reward for mining new blocks, is critical. This event typically leads to increased volatility in the bitcoin market and can significantly impact the profitability of mining operations. Core Scientific's preparation for this event, through fleet refreshment and scale-up plans, suggests strategic foresight that may mitigate the potential negative effects of the halving on the company's operations.
Fiscal Year 2023 Highlights
-
A total of 19,274 bitcoin earned in our data centers; 13,762 bitcoin by self-mining for our account, more than any other publicly listed miner in
North America , and an estimated 5,512 for our hosting clients’ accounts - Operated total hash rate of 23.2 EH/s, consisting of 16.9 EH/s self-mining and 6.3 EH/s hosting
-
Owned and managed 724 megawatts of infrastructure, the largest owned infrastructure footprint among publicly listed miners in
North America - Improved average self-mining fleet energy efficiency to 27.94 joules per terahash
- Developed organic growth plan for more than 20 EH/s of new self-mining hash rate
Core Scientific is a leader in bitcoin mining and digital infrastructure for emerging high-value compute (Graphic: Business Wire)
Fiscal Fourth Quarter 2023 Compared to Fiscal Fourth Year 2022
-
Total revenue of
$141.9 million $20.7 million -
Net loss of
$195.7 million $239.2 million -
Adjusted EBITDA of
$57.5 million $51.2 million
Fiscal Year 2023 Financial Highlights Compared to Fiscal Year 2022
-
Total revenue of
$502.4 million $137.9 million -
Net loss of
$246.5 million $1.90 billion -
Adjusted EBITDA of
$170.0 million $180.7 million
“In 2023, Core Scientific earned more self-mined bitcoin than any other listed miner in
“We believe our growth plan and diversified platform give us the ability to refresh our fleet with more efficient miners, scale our business with favorable economics and position ourselves well for the upcoming halving and beyond,” Mr. Sullivan continued. “Coming off our strong operating performance in the fourth quarter, we have seen bitcoin prices rise and our self-mining operation continue to perform well as we are able to take advantage of excellent industry fundamentals.”
The Company has completed all 2024 payments for new bitcoin miners ordered for the current year and is accelerating the delivery and deployment of new Bitmain S21 miners. In addition, Core Scientific has improved financial results by rationalizing its hosting client base, instituting proceeds sharing contracts, reducing operating expenses and optimizing the location of miners in its data centers to increase profitability.
“Our strong momentum continued into 2024 as we recently announced the expansion of our hosting business with a strategic, long-term contract with CoreWeave, Inc., a leading specialized GPU cloud provider. While our continued focus remains squarely on bitcoin mining, this new contract broadens our revenue model to customers engaged in rapidly growing, high-performance computing supporting the rapid expansion of AI computing demands. More importantly, this contract enhances shareholder value,” added Mr. Sullivan. “We could not be more excited at this point in Core Scientific’s history, as we have secured a renewed opportunity to demonstrate the value of our platform and the strategic nature of our footprint to the future of high-value compute.”
Fiscal Fourth Quarter 2023 Financial Results (Compared to Fiscal Fourth Quarter 2022)
Total revenue of
Cost of revenue of
Total operating expenses of
Net loss of
Adjusted EBITDA improved to
Fiscal Year 2023 Financial Results (Compared to Fiscal Year 2022)
Total revenue of
Cost of revenue of
Total operating expenses of
Net loss of
Adjusted EBITDA of
CONFERENCE CALL AND LIVE WEBCAST
In conjunction with this release, Core Scientific, Inc. will host a conference call today, Tuesday, March 12, 2024, at 4:30 pm Eastern Time that will be webcast live. Adam Sullivan, Chief Executive Officer, Denise Sterling, Chief Financial Officer and Steven A. Gitlin, Senior Vice President Investor Relations, will host the call.
Investors may dial into the call by using the following telephone numbers, +1 833 470 1428 (
Investors with Internet access may listen to the live audio webcast via the Investor Relations page of the Core Scientific, Inc. website, http://investors.corescientific.com. Please allow 10 minutes prior to the call to download and install any necessary audio software. A replay of the audio webcast will be available for one year.
A supplementary investor presentation for the full fiscal year 2023 may be accessed at https://investors.corescientific.com/investors/events-and-presentations/default.aspx.
AUDIO REPLAY
An audio replay of the event will be archived on the Investor Relations section of the Company's website at http://investors.corescientific.com and via telephone by dialing +1 866 813 9403 (
ABOUT CORE SCIENTIFIC
Core Scientific is one of the largest bitcoin miners and hosting solutions providers for bitcoin mining in
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, source clean and renewable energy, the advantages and expected growth of the Company and the Company’s ability to source and retain talent. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “aim,” “estimate,” “plan,” “project,” “forecast,” “goal,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including: our ability to earn digital assets profitably and to attract customers for our hosting capabilities; our ability to maintain our competitive position as digital asset networks experience increases in total network hash rate; our ability to raise additional capital to continue our expansion efforts or other operations; our need for significant electric power and the limited availability of power resources; the potential failure in our critical systems, facilities or services we provide; the physical risks and regulatory changes relating to climate change; potential significant changes to the method of validating blockchain transactions; our vulnerability to physical security breaches, which could disrupt our operations; a potential slowdown in market and economic conditions, particularly those impacting the blockchain industry and the blockchain hosting market; the identification of material weaknesses in our internal control over financial reporting; price volatility of digital assets and bitcoin in particular; the “halving” of rewards available on the Bitcoin network, or the reduction of rewards on other networks, affecting our ability to generate revenue as our customers may not have an adequate incentive to continue mining and customers may cease mining operations altogether; the potential that insufficient awards from digital asset mining could disincentivize transaction processors from expending processing power on a particular network, which could negatively impact the utility of the network and further reduce the value of its digital assets; the requirements of our existing debt agreements for us to sell our digital assets earned from mining as they are received, preventing us from recognizing any gain from appreciation in the value of the digital assets we hold; potential changes in the interpretive positions of the SEC or its staff with respect to digital asset mining firms; the increasing likelihood that
Although the Company believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. The Company cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Additional important factors that may affect the Company’s business, results of operations and financial position are described from time to time in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Reports on Form 10-Q and the Company’s other filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law.
Core Scientific, Inc. (Debtor-in-Possession) Consolidated Balance Sheets (in thousands, except par value) (Unaudited) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
50,409 |
|
|
$ |
15,884 |
|
Restricted cash |
|
19,300 |
|
|
|
36,356 |
|
Accounts receivable, net of allowance of $— and |
|
1,001 |
|
|
|
234 |
|
Accounts receivable from related parties |
|
— |
|
|
|
23 |
|
Digital assets |
|
2,284 |
|
|
|
724 |
|
Prepaid expenses and other current assets |
|
24,022 |
|
|
|
31,881 |
|
Total Current Assets |
|
97,016 |
|
|
|
85,102 |
|
Property, plant and equipment, net |
|
585,431 |
|
|
|
691,134 |
|
Operating lease right-of-use assets |
|
7,844 |
|
|
|
20,430 |
|
Intangible assets, net |
|
2,247 |
|
|
|
1,704 |
|
Other noncurrent assets |
|
19,618 |
|
|
|
9,316 |
|
Total Assets |
$ |
712,156 |
|
|
$ |
807,686 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable |
$ |
154,751 |
|
|
$ |
53,641 |
|
Accrued expenses and other current liabilities |
|
179,636 |
|
|
|
17,952 |
|
Operating lease liabilities, current portion |
|
77 |
|
|
|
769 |
|
Deferred revenue |
|
9,830 |
|
|
|
77,689 |
|
Deferred revenue from related parties |
|
— |
|
|
|
496 |
|
Finance lease liabilities, current portion |
|
19,771 |
|
|
|
— |
|
Notes payable, current portion |
|
124,358 |
|
|
|
36,242 |
|
Total Current Liabilities |
|
488,423 |
|
|
|
186,789 |
|
Finance lease liabilities, net of current portion |
|
35,745 |
|
|
|
— |
|
Operating lease liabilities, net of current portion |
|
1,512 |
|
|
|
720 |
|
Notes payable, net of current portion |
|
684,082 |
|
|
|
— |
|
Other noncurrent liabilities |
|
— |
|
|
|
2,210 |
|
Total liabilities not subject to compromise |
|
1,209,762 |
|
|
|
189,719 |
|
Liabilities subject to compromise |
|
99,335 |
|
|
|
1,027,313 |
|
Total Liabilities |
|
1,309,097 |
|
|
|
1,217,032 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Deficit: |
|
|
|
||||
Common stock; |
|
36 |
|
|
|
36 |
|
Additional paid-in capital |
|
1,823,260 |
|
|
|
1,764,368 |
|
Accumulated deficit |
|
(2,420,237 |
) |
|
|
(2,173,750 |
) |
Total Stockholders’ Deficit |
|
(596,941 |
) |
|
|
(409,346 |
) |
Total Liabilities and Stockholders’ Deficit |
$ |
712,156 |
|
|
$ |
807,686 |
|
Core Scientific, Inc. (Debtor-in-Possession) Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Hosting revenue from customers |
$ |
29,760 |
|
|
$ |
35,827 |
|
|
$ |
102,005 |
|
|
$ |
130,234 |
|
Hosting revenue from related parties |
|
— |
|
|
|
6,795 |
|
|
|
10,062 |
|
|
|
29,454 |
|
Equipment sales to customers |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,391 |
|
Equipment sales to related parties |
|
— |
|
|
|
4,169 |
|
|
|
— |
|
|
|
71,438 |
|
Digital asset mining revenue |
|
112,169 |
|
|
|
74,459 |
|
|
|
390,333 |
|
|
|
397,796 |
|
Total revenue |
|
141,929 |
|
|
|
121,250 |
|
|
|
502,400 |
|
|
|
640,313 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Cost of hosting services |
|
23,058 |
|
|
|
49,867 |
|
|
|
87,245 |
|
|
|
169,717 |
|
Cost of equipment sales |
|
— |
|
|
|
3,121 |
|
|
|
— |
|
|
|
67,114 |
|
Cost of digital asset mining |
|
79,571 |
|
|
|
115,506 |
|
|
|
291,696 |
|
|
|
395,082 |
|
Total cost of revenue |
|
102,629 |
|
|
|
168,494 |
|
|
|
378,941 |
|
|
|
631,913 |
|
Gross profit (loss) |
|
39,300 |
|
|
|
(47,244 |
) |
|
|
123,459 |
|
|
|
8,400 |
|
Gain from sales of digital assets |
|
1,535 |
|
|
|
19,291 |
|
|
|
3,893 |
|
|
|
44,298 |
|
Impairment of digital assets |
|
(1,542 |
) |
|
|
(19,131 |
) |
|
|
(4,406 |
) |
|
|
(231,315 |
) |
Change in fair value of derivative instruments |
|
(3,918 |
) |
|
|
— |
|
|
|
(3,918 |
) |
|
|
— |
|
Impairment of goodwill and other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,059,265 |
) |
Impairment of property, plant and equipment |
|
— |
|
|
|
(531,414 |
) |
|
|
— |
|
|
|
(590,673 |
) |
Losses on exchange or disposal of property, plant and equipment |
|
(1,442 |
) |
|
|
(14,968 |
) |
|
|
(1,956 |
) |
|
|
(28,025 |
) |
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
1,876 |
|
|
|
2,657 |
|
|
|
7,184 |
|
|
|
26,962 |
|
Sales and marketing |
|
3,886 |
|
|
|
1,056 |
|
|
|
7,019 |
|
|
|
12,731 |
|
General and administrative |
|
24,237 |
|
|
|
38,900 |
|
|
|
93,908 |
|
|
|
213,280 |
|
Total operating expenses |
|
29,999 |
|
|
|
42,613 |
|
|
|
108,111 |
|
|
|
252,973 |
|
Operating income (loss) |
|
3,934 |
|
|
|
(636,079 |
) |
|
|
8,961 |
|
|
|
(2,109,553 |
) |
Non-operating expenses, net: |
|
|
|
|
|
|
|
||||||||
(Gain) loss on debt extinguishment |
|
1,070 |
|
|
|
287 |
|
|
|
(20,065 |
) |
|
|
287 |
|
Interest expense, net |
|
83,921 |
|
|
|
22,092 |
|
|
|
86,238 |
|
|
|
96,826 |
|
Fair value adjustment on convertible notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
186,853 |
|
Fair value adjustment on derivative warrant liabilities |
|
— |
|
|
|
(4,952 |
) |
|
|
— |
|
|
|
(37,937 |
) |
Reorganization items, net |
|
112,852 |
|
|
|
(197,405 |
) |
|
|
191,122 |
|
|
|
(197,405 |
) |
Other non-operating (income) expenses, net |
|
1,448 |
|
|
|
235 |
|
|
|
(2,530 |
) |
|
|
5,232 |
|
Total non-operating expense (income), net |
|
199,291 |
|
|
|
(179,743 |
) |
|
|
254,765 |
|
|
|
53,856 |
|
Loss before income taxes |
|
(195,357 |
) |
|
|
(456,336 |
) |
|
|
(245,804 |
) |
|
|
(2,163,409 |
) |
Income tax expense (benefit) |
|
336 |
|
|
|
(21,489 |
) |
|
|
683 |
|
|
|
(17,091 |
) |
Net loss |
|
(195,693 |
) |
|
|
(434,847 |
) |
|
|
(246,487 |
) |
|
|
(2,146,318 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.51 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.65 |
) |
|
$ |
(6.30 |
) |
Diluted |
$ |
(0.51 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.65 |
) |
|
$ |
(6.30 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
385,074 |
|
|
|
371,357 |
|
|
|
379,863 |
|
|
|
340,647 |
|
Diluted |
|
385,074 |
|
|
|
371,357 |
|
|
|
379,863 |
|
|
|
340,647 |
|
Core Scientific, Inc. (Debtor-in-Possession) Segment Results (in thousands, except percentages) (Unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Hosting Segment |
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Hosting revenue |
$ |
29,760 |
|
|
$ |
42,622 |
|
|
$ |
112,067 |
|
|
$ |
159,688 |
|
Equipment sales |
|
— |
|
|
|
4,169 |
|
|
|
— |
|
|
|
82,829 |
|
Total revenue |
|
29,760 |
|
|
|
46,791 |
|
|
|
112,067 |
|
|
|
242,517 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Cost of hosting services |
|
23,058 |
|
|
|
49,867 |
|
|
$ |
87,245 |
|
|
$ |
169,717 |
|
Cost of equipment sales |
|
— |
|
|
|
3,121 |
|
|
|
— |
|
|
|
67,114 |
|
Total cost of revenue |
$ |
23,058 |
|
|
$ |
52,988 |
|
|
$ |
87,245 |
|
|
$ |
236,831 |
|
Gross profit (loss) |
$ |
6,702 |
|
|
$ |
(6,197 |
) |
|
$ |
24,822 |
|
|
$ |
5,686 |
|
Gross margin1 |
|
23 |
% |
|
|
(13 |
)% |
|
|
22 |
% |
|
|
2 |
% |
Mining Segment |
|||||||||||||||
Digital asset mining revenue |
$ |
112,169 |
|
|
$ |
74,459 |
|
|
$ |
390,333 |
|
|
$ |
397,796 |
|
Total revenue |
|
112,169 |
|
|
|
74,459 |
|
|
|
390,333 |
|
|
|
397,796 |
|
Cost of revenue |
|
79,571 |
|
|
|
115,506 |
|
|
|
291,696 |
|
|
|
395,082 |
|
Gross profit (loss) |
$ |
32,598 |
|
|
$ |
(41,047 |
) |
|
$ |
98,637 |
|
|
$ |
2,714 |
|
Gross margin1 |
|
29 |
% |
|
|
(55 |
)% |
|
|
25 |
% |
|
|
1 |
% |
Consolidated |
|
|
|
|
|
|
|
||||||||
Consolidated total revenue |
$ |
141,929 |
|
|
$ |
121,250 |
|
|
$ |
502,400 |
|
|
$ |
640,313 |
|
Consolidated cost of revenue |
$ |
102,629 |
|
|
$ |
168,494 |
|
|
$ |
378,941 |
|
|
$ |
631,913 |
|
Consolidated gross profit (loss) |
$ |
39,300 |
|
|
$ |
(47,244 |
) |
|
$ |
123,459 |
|
|
$ |
8,400 |
|
Consolidated gross margin1 |
|
28 |
% |
|
|
(39 |
)% |
|
|
25 |
% |
|
|
1 |
% |
| _______________ | |||||||||||||||
1 Gross margin is calculated as gross profit as a percentage of total revenue. |
|||||||||||||||
Core Scientific, Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited) |
|||||||||||||||
Adjusted EBITDA is a non-GAAP financial measure defined as our net income or (loss), adjusted to eliminate the effect of (i) interest income, interest expense, and other income (expense), net; (ii) provision for income taxes; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) restructuring charges; (vi) Reorganization items, net; (vii) unrealized changes in fair value of derivative instruments; and (viii) certain additional non-cash or non-recurring items, that do not reflect the performance of our ongoing business operations. For additional information, including the reconciliation of net income (loss) to Adjusted EBITDA, please refer to the table below. We believe Adjusted EBITDA is an important measure because it allows management, investors, and our Board of Directors to evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by making the adjustments described above. In addition, it provides useful information to investors and others in understanding and evaluating our results of operations, as well as provides a useful measure for period-to-period comparisons of our business, as it removes the effect of net interest expense, taxes, certain non-cash items, variable charges, and timing differences. Moreover, we have included Adjusted EBITDA in this earnings release because it is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic and financial planning. |
|||||||||||||||
The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature or because the amount and timing of these items are not related to the current results of our core business operations which renders evaluation of our current performance, comparisons of performance between periods and comparisons of our current performance with our competitors less meaningful. However, you should be aware that when evaluating Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating this measure. Our presentation of this measure should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items. Further, this non-GAAP financial measure should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with accounting principles generally accepted in |
|||||||||||||||
The following table reconciles the non-GAAP financial measure to the most directly comparable |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
20221,2 |
||||||||
Reconciliation of Net loss to Adjusted EBITDA |
(Unaudited) |
||||||||||||||
Net loss |
$ |
(195,693 |
) |
|
$ |
(434,847 |
) |
|
$ |
(246,487 |
) |
|
$ |
(2,146,318 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
83,921 |
|
|
|
22,092 |
|
|
|
86,238 |
|
|
|
96,826 |
|
Income tax expense (benefit) |
|
336 |
|
|
|
(21,489 |
) |
|
|
683 |
|
|
|
(17,091 |
) |
Depreciation and amortization |
|
31,203 |
|
|
|
68,715 |
|
|
|
96,003 |
|
|
|
225,259 |
|
Amortization of operating lease right-of-use assets |
|
(261 |
) |
|
|
410 |
|
|
|
442 |
|
|
|
834 |
|
(Gain) loss on debt extinguishment |
|
1,070 |
|
|
|
287 |
|
|
|
(20,065 |
) |
|
|
287 |
|
Stock-based compensation expense3 |
|
17,478 |
|
|
|
16,346 |
|
|
|
58,892 |
|
|
|
182,894 |
|
Fair value adjustment on derivative warrant liabilities |
|
— |
|
|
|
(4,952 |
) |
|
|
— |
|
|
|
(37,937 |
) |
Fair value adjustment on convertible notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
186,853 |
|
Impairment of goodwill and other intangibles |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,059,265 |
|
Impairment of property, plant and equipment |
|
— |
|
|
|
531,414 |
|
|
|
— |
|
|
|
590,673 |
|
Losses on exchange or disposal of property, plant and equipment |
|
1,442 |
|
|
|
14,968 |
|
|
|
1,956 |
|
|
|
28,025 |
|
Gain on sale of intangible assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,904 |
) |
Cash restructuring charges |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,320 |
|
Reorganization items, net |
|
112,852 |
|
|
|
(197,405 |
) |
|
|
191,122 |
|
|
|
(197,405 |
) |
Fair value adjustment on acquired vendor liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,498 |
|
Equity line of credit expenses |
|
— |
|
|
|
237 |
|
|
|
— |
|
|
|
1,668 |
|
Unrealized change in fair value of derivative instruments |
|
2,262 |
|
|
|
— |
|
|
|
2,262 |
|
|
|
— |
|
Other non-operating (income) expenses, net |
|
1,448 |
|
|
|
235 |
|
|
|
(2,530 |
) |
|
|
5,232 |
|
Other items |
|
1,474 |
|
|
|
10,300 |
|
|
|
1,474 |
|
|
|
5,276 |
|
Adjusted EBITDA |
$ |
57,532 |
|
|
$ |
6,311 |
|
|
$ |
169,990 |
|
|
$ |
(10,745 |
) |
1 Certain prior year amounts have been reclassified for consistency with the current year presentation. |
|||||||||||||||
2 Previously, the Company had held the bitcoin it earned as an investment for long-term appreciation. This strategy was outside our primary operations and the results of impairments and realized gains and losses had been excluded from adjusted EBITDA. With our current strategy of monetizing our bitcoin revenue soon after earning it and changes in accounting standards, Management is no longer excluding these amounts from its Adjusted EBITDA. |
|||||||||||||||
3 Includes |
|||||||||||||||
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Investors:
ir@corescientific.com
Media:
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Source: Core Scientific, Inc.
FAQ
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