Core Scientific Announces Fiscal Second Quarter 2024 Results
Core Scientific (NASDAQ: CORZ) reported its fiscal Q2 2024 results, highlighting a net loss of $804.9 million, primarily due to a $796.0 million non-cash mark-to-market adjustment to warrants and contingent value right liabilities. Despite this, the company generated operating income of $6.6 million and adjusted EBITDA of $46.0 million. Total revenue increased to $141.1 million, up from $126.9 million in Q2 2023. The company contracted 382 megawatts of infrastructure for high-performance computing, with potential revenue of $6.7 billion over 12 years. Core Scientific also achieved mandatory conversion of convertible notes, removing $260 million in debt from its balance sheet, and earned 1,680 self-mined bitcoin.
Core Scientific (NASDAQ: CORZ) ha riportato i risultati fiscali del secondo trimestre 2024, evidenziando una perdita netta di 804,9 milioni di dollari, principalmente a causa di un aggiustamento non in contante di 796,0 milioni di dollari relativo alle passività per warrant e diritti di valore contingenti. Nonostante ciò, l'azienda ha generato un reddito operativo di 6,6 milioni di dollari e un EBITDA rettificato di 46,0 milioni di dollari. I ricavi totali sono aumentati a 141,1 milioni di dollari, rispetto ai 126,9 milioni di dollari del secondo trimestre 2023. L'azienda ha contrattato 382 megawatt di infrastruttura per il calcolo ad alte prestazioni, con un potenziale di ricavo di 6,7 miliardi di dollari in 12 anni. Core Scientific ha anche completato la conversione obbligatoria di note convertibili, rimuovendo 260 milioni di dollari di debito dal suo bilancio, e ha guadagnato 1.680 bitcoin estratti autonomamente.
Core Scientific (NASDAQ: CORZ) informó sobre sus resultados fiscales del segundo trimestre de 2024, destacando una pérdida neta de 804,9 millones de dólares, principalmente debido a un ajuste no monetario de 796,0 millones de dólares relacionado con las pasivos de warrants y derechos de valor contingente. A pesar de esto, la empresa generó un ingreso operativo de 6,6 millones de dólares y un EBITDA ajustado de 46,0 millones de dólares. Los ingresos totales aumentaron a 141,1 millones de dólares, en comparación con 126,9 millones de dólares en el segundo trimestre de 2023. La compañía contrató 382 megavatios de infraestructura para computación de alto rendimiento, con un potencial de ingresos de 6,7 mil millones de dólares durante 12 años. Core Scientific también logró la conversión obligatoria de notas convertibles, eliminando 260 millones de dólares en deuda de su balance, y obtuvo 1.680 bitcoin minados por sí mismo.
코어 사이언티픽 (NASDAQ: CORZ)은 2024 회계연도 2분기 결과를 보고하며, 8억 490만 달러의 순손실을 기록했다고 밝혔습니다. 이는 주식매매권 및 조건부 가치권 책임에 대한 7억 9600만 달러의 비현금 시장가치 조정이 주된 원인입니다. 그럼에도 불구하고, 이 회사는 660만 달러의 운영 수익과 4600만 달러의 조정 EBITDA를 창출했습니다. 총 수익은 1억 4110만 달러로 증가했으며, 이는 2023년 2분기 1억 2690만 달러에서 증가한 수치입니다. 이 회사는 고성능 컴퓨팅을 위한 382 메가와트의 인프라를 계약하고 12년 동안 67억 달러의 잠재 수익을 기대하고 있습니다. 코어 사이언티픽은 또한 전환사채의 의무 전환을 달성하여 2억 6000만 달러의 부채를 제거하였으며, 1680개의 자산 채굴 비트코인을 획득했습니다.
Core Scientific (NASDAQ: CORZ) a publié ses résultats financiers pour le deuxième trimestre 2024, mettant en évidence une perte nette de 804,9 millions de dollars, principalement en raison d'un ajustement non comptant de 796,0 millions de dollars lié aux warrants et aux droits de valeur conditionnelle. Malgré cela, la société a généré un revenu opérationnel de 6,6 millions de dollars et un EBITDA ajusté de 46,0 millions de dollars. Le chiffre d'affaires total a augmenté à 141,1 millions de dollars, contre 126,9 millions de dollars au deuxième trimestre 2023. L'entreprise a contracté 382 mégawatts d'infrastructure pour l'informatique haute performance, avec des revenus potentiels de 6,7 milliards de dollars sur 12 ans. Core Scientific a également réussi la conversion obligatoire de billets convertibles, éliminant 260 millions de dollars de dettes de son bilan, et a gagné 1 680 bitcoins minés par ses soins.
Core Scientific (NASDAQ: CORZ) hat seine Ergebnisse für das Fiskalquartal Q2 2024 veröffentlicht und dabei einen Nettoverlust von 804,9 Millionen Dollar ausgewiesen, hauptsächlich aufgrund einer nicht cashbeträglichen Bewertung von 796,0 Millionen Dollar für Warrants und bedingte Zahlungsansprüche. Trotz dieser Situation erwirtschaftete das Unternehmen einen operativen Gewinn von 6,6 Millionen Dollar und ein bereinigtes EBITDA von 46,0 Millionen Dollar. Die Gesamterlöse stiegen auf 141,1 Millionen Dollar, ein Anstieg von 126,9 Millionen Dollar im Q2 2023. Das Unternehmen unterzeichnete Verträge über 382 Megawatt Infrastruktur für Hochleistungsrechnen mit einem potenziellen Umsatz von 6,7 Milliarden Dollar über 12 Jahre. Core Scientific erreichte ebenfalls die obligatorische Umwandlung von wandelbaren Schuldverschreibungen, wodurch 260 Millionen Dollar Schulden aus der Bilanz entfernt wurden, und erhielt 1.680 selbst geschürfte Bitcoins.
- Total revenue increased to $141.1 million, up from $126.9 million in Q2 2023
- Adjusted EBITDA improved to $46.0 million, up from $45.0 million in Q2 2023
- Contracted 382 megawatts of infrastructure for HPC with potential revenue of $6.7 billion over 12 years
- Achieved mandatory conversion of convertible notes, removing $260 million in debt from balance sheet
- Improved average actual self-mining fleet energy efficiency to 24.7 joules per terahash
- Expanded operational infrastructure to approximately 830 megawatts
- Incurred a net loss of $804.9 million, primarily due to non-cash mark-to-market adjustments
- Operating income decreased to $6.6 million from $9.5 million in Q2 2023
- Bitcoin production decreased by 52% due to halving and higher network difficulty
- Operating expenses increased by $4.3 million compared to Q2 2023
Insights
Core Scientific's Q2 2024 results present a mixed picture. The company reported a significant net loss of
- Total revenue increased by
11.2% year-over-year to$141.1 million - Adjusted EBITDA grew slightly to
$46.0 million - Digital asset self-mining gross margin improved to
28%
The company's strategic shift towards high-performance computing (HPC) hosting is noteworthy, with 382 megawatts of infrastructure contracted for potential revenue of
However, investors should monitor the company's ability to execute its HPC strategy and navigate potential supply chain challenges. The volatile nature of bitcoin mining and its impact on financial results remain key risk factors.
Core Scientific's Q2 results reflect the challenging landscape of bitcoin mining post-halving. The company mined 1,680 bitcoin, a significant decrease from previous quarters due to the halving event and increased network difficulty. However, their ability to maintain a competitive cash cost to mine of approximately
The improvement in average self-mining fleet energy efficiency to 24.7 joules per terahash is important for maintaining competitiveness. With a total hash rate of 24.6 EH/s, Core Scientific remains a major player in the bitcoin mining industry.
The
Investors should closely watch how Core Scientific balances its bitcoin mining operations with the growing HPC hosting business in the coming quarters.
Core Scientific's infrastructure developments are promising. The completion of an additional 72 megawatts at the Denton, Texas data center, expanding operational infrastructure to approximately 830 megawatts, demonstrates the company's commitment to growth. This expansion is important for supporting both bitcoin mining and the new HPC hosting initiatives.
The contract for 382 megawatts of HPC hosting infrastructure is a significant pivot, potentially generating
However, the mention of supply chain challenges in modifying data centers for HPC hosting is a concern. These challenges could potentially delay the realization of HPC hosting revenues and increase costs. The company's ability to navigate these issues will be critical for successful execution of its strategy.
The remaining 118 megawatts of uncontracted infrastructure presents both an opportunity and a challenge. Securing contracts for this capacity will be important for maximizing asset utilization and revenue potential.
Fiscal Second Quarter 2024 Highlights
-
Incurred net loss of
$804.9 million $796.0 million -
Generated operating income of
$6.6 million $2.9 million -
Produced adjusted EBITDA of
$46.0 million -
Contracted 382 megawatts of infrastructure to host high-performance computing (“HPC”), including latest contract option exercise, for total potential revenue of approximately
$6.7 billion -
Achieved mandatory conversion of convertible notes, removing
$260 million - Earned 1,680 self-mined bitcoin
“We continue to demonstrate progress on the execution of our strategy to maximize the value of our high-power digital infrastructure portfolio through bitcoin mining and high-performance computing,” said Adam Sullivan, Core Scientific Chief Executive Officer. “Key achievements in and after the quarter include successfully navigating the April halving and emerging with favorable quarterly cash cost to mine of approximately
“Our highly experienced digital infrastructure team is preparing to modify several of our data centers to support HPC hosting, including working diligently to address supply chain challenges as they emerge. We also continue discussions with our existing client and other counterparties to contract our remaining 118 megawatts of infrastructure for HPC hosting while we work to execute on our pipeline of opportunities to increase our 1,200 MW of contracted power. We are building meaningful momentum in each of our businesses as we enter the second half of the year and believe we are well positioned to drive continued value creation for our shareholders,” Mr. Sullivan added.
Fiscal Second Quarter Financial and Operational Achievements
-
Total revenue of
$141.1 million $14.2 million -
Net loss of
$804.9 million $795.6 million -
Operating income of
$6.6 million $2.9 million -
Adjusted EBITDA of
$46.0 million $1.0 million -
Cash and cash equivalents of
$96.1 million -
Additional 72 megawatts of infrastructure completed at
Denton, Texas data center, expanding operational infrastructure to approximately 830 megawatts -
Voluntary conversion of
$26.4 million $233.6 million - Operated total hash rate of 24.6 EH/s, consisting of 19.4 EH/s self-mining and 5.2 EH/s hosting
- Improved average actual self-mining fleet energy efficiency to 24.7 joules per terahash
-
Strengthened the balance sheet, ending the quarter with
$96.1 million
Fiscal Second Quarter 2024 Financial Results (Compared to Fiscal Second Quarter 2023)
Total revenue for the fiscal second quarter of 2024 was
Digital asset self-mining revenue in excess of mining cost of revenue for the fiscal second quarter of 2024 was
Digital asset hosted mining revenue in excess of hosting cost of revenue for the fiscal second quarter of 2024 was
HPC hosting revenue in excess of HPC hosting cost of revenue for the fiscal second quarter of 2024 was
Operating expenses for the fiscal second quarter of 2024 totaled
Net loss for the fiscal second quarter of 2024 was
Non-GAAP Adjusted EBITDA for the fiscal second quarter 2024 was
Fiscal Year-to-Date 2024 Financial Results (Compared to Fiscal Year-to-Date 2023)
Total revenue for the six months ended June 30, 2024 was
Digital asset self-mining revenue in excess of mining cost of revenue for the six months ended June 30, 2024 was
Digital asset hosted mining revenue in excess of hosting cost of revenue for the six months ended June 30, 2024 was
HPC hosting revenue in excess of HPC hosting cost of revenue for the six months ended June 30, 2024 was
Operating expenses for the six months ended June 30, 2024 totaled
Net loss for the six months ended June 30, 2024 was
Non-GAAP Adjusted EBITDA for the six months ended June 30, 2024 was
CONFERENCE CALL AND LIVE WEBCAST
In conjunction with this release, Core Scientific, Inc. will host a conference call today, Wednesday, August 7, 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 (877) 407-1875 (
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 or by clicking here. 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 fiscal second quarter 2024 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 (877) 660-6853 (
ABOUT CORE SCIENTIFIC
Core Scientific is a leader in digital infrastructure for bitcoin mining and high-performance computing. Transforming energy into high-value compute with superior efficiency at scale, we employ our own large fleet of computers (“miners”) to earn bitcoin for our own account and provide hosting services for bitcoin mining and high-performance computing customers at our eight operational data centers 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, grow its business and execute on its growth plans and hosting contracts, source clean and renewable energy, the advantages, expected growth, and anticipated future revenue 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 digital asset and high performance compute hosting capabilities; our ability to perform under our existing colocation agreements, our ability to maintain our competitive position in our existing operating segments, the impact of 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 high performance computing, 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, affecting our ability to generate revenue; 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. Condensed Consolidated Balance Sheets (in thousands, except par value) (Unaudited) |
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
96,122 |
|
|
$ |
50,409 |
|
Restricted cash |
|
983 |
|
|
|
19,300 |
|
Accounts receivable |
|
4,676 |
|
|
|
1,001 |
|
Digital assets |
|
— |
|
|
|
2,284 |
|
Prepaid expenses and other current assets |
|
16,082 |
|
|
|
24,022 |
|
Total Current Assets |
|
117,863 |
|
|
|
97,016 |
|
Property, plant and equipment, net |
|
549,994 |
|
|
|
585,431 |
|
Operating lease right-of-use assets |
|
75,783 |
|
|
|
7,844 |
|
Other noncurrent assets |
|
17,816 |
|
|
|
21,865 |
|
Total Assets |
$ |
761,456 |
|
|
$ |
712,156 |
|
Liabilities and Stockholders’ Deficit |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable |
$ |
8,491 |
|
|
$ |
154,751 |
|
Accrued expenses and other current liabilities |
|
28,949 |
|
|
|
179,636 |
|
Deferred revenue |
|
7,912 |
|
|
|
9,830 |
|
Operating lease liabilities, current portion |
|
5,427 |
|
|
|
77 |
|
Finance lease liabilities, current portion |
|
2,717 |
|
|
|
19,771 |
|
Notes payable, current portion |
|
18,370 |
|
|
|
124,358 |
|
Contingent value rights, current portion |
|
2,958 |
|
|
|
— |
|
Total Current Liabilities |
|
74,824 |
|
|
|
488,423 |
|
Operating lease liabilities, net of current portion |
|
67,068 |
|
|
|
1,512 |
|
Finance lease liabilities, net of current portion |
|
553 |
|
|
|
35,745 |
|
Convertible and other notes payable, net of current portion |
|
526,756 |
|
|
|
684,082 |
|
Contingent value rights, net of current portion |
|
9,988 |
|
|
|
— |
|
Warrant liabilities |
|
1,155,103 |
|
|
|
— |
|
Other noncurrent liabilities |
|
11,038 |
|
|
|
— |
|
Total liabilities not subject to compromise |
|
1,845,330 |
|
|
|
1,209,762 |
|
Liabilities subject to compromise |
|
— |
|
|
|
99,335 |
|
Total Liabilities |
|
1,845,330 |
|
|
|
1,309,097 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Deficit: |
|
|
|
||||
Preferred stock; |
|
— |
|
|
|
— |
|
Common stock; |
|
2 |
|
|
|
36 |
|
Additional paid-in capital |
|
1,930,542 |
|
|
|
1,823,260 |
|
Accumulated deficit |
|
(3,014,418 |
) |
|
|
(2,420,237 |
) |
Total Stockholders’ Deficit |
|
(1,083,874 |
) |
|
|
(596,941 |
) |
Total Liabilities and Stockholders’ Deficit |
$ |
761,456 |
|
|
$ |
712,156 |
|
Core Scientific, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Digital asset self-mining revenue |
$ |
110,743 |
|
|
$ |
97,082 |
|
|
$ |
260,702 |
|
|
$ |
195,108 |
|
Digital asset hosted mining revenue from customers |
|
24,840 |
|
|
|
26,316 |
|
|
|
54,172 |
|
|
|
45,225 |
|
Digital asset hosted mining revenue from related parties |
|
— |
|
|
|
3,514 |
|
|
|
— |
|
|
|
7,234 |
|
HPC hosting revenue |
|
5,519 |
|
|
|
— |
|
|
|
5,519 |
|
|
|
— |
|
Total revenue |
|
141,102 |
|
|
|
126,912 |
|
|
|
320,393 |
|
|
|
247,567 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Cost of digital asset self-mining |
|
80,001 |
|
|
|
66,846 |
|
|
|
161,565 |
|
|
|
139,522 |
|
Cost of digital asset hosted mining services |
|
17,393 |
|
|
|
23,107 |
|
|
|
37,474 |
|
|
|
39,305 |
|
Cost of HPC hosting services |
|
4,891 |
|
|
|
— |
|
|
|
4,891 |
|
|
|
— |
|
Total cost of revenue |
|
102,285 |
|
|
|
89,953 |
|
|
|
203,930 |
|
|
|
178,827 |
|
Gross profit |
|
38,817 |
|
|
|
36,959 |
|
|
|
116,463 |
|
|
|
68,740 |
|
Change in fair value of digital assets |
|
(584 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
— |
|
Gain from sale of digital assets |
|
— |
|
|
|
931 |
|
|
|
— |
|
|
|
1,995 |
|
Impairment of digital assets |
|
— |
|
|
|
(1,127 |
) |
|
|
— |
|
|
|
(2,183 |
) |
Change in fair value of energy derivatives |
|
(539 |
) |
|
|
— |
|
|
|
(2,757 |
) |
|
|
— |
|
Gain (loss) on disposal of property, plant and equipment |
|
268 |
|
|
|
(174 |
) |
|
|
(3,552 |
) |
|
|
(174 |
) |
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development |
|
2,174 |
|
|
|
1,640 |
|
|
|
3,973 |
|
|
|
3,055 |
|
Sales and marketing |
|
2,966 |
|
|
|
1,084 |
|
|
|
3,948 |
|
|
|
2,092 |
|
General and administrative |
|
26,243 |
|
|
|
24,396 |
|
|
|
40,386 |
|
|
|
46,160 |
|
Total operating expenses |
|
31,383 |
|
|
|
27,120 |
|
|
|
48,307 |
|
|
|
51,307 |
|
Operating income |
|
6,579 |
|
|
|
9,469 |
|
|
|
61,806 |
|
|
|
17,071 |
|
Non-operating (income) expenses, net: |
|
|
|
|
|
|
|
||||||||
Loss (gain) on debt extinguishment |
|
120 |
|
|
|
— |
|
|
|
170 |
|
|
|
(20,761 |
) |
Interest expense (income), net |
|
14,775 |
|
|
|
(36 |
) |
|
|
28,862 |
|
|
|
121 |
|
Reorganization items, net |
|
— |
|
|
|
18,455 |
|
|
|
(111,439 |
) |
|
|
50,014 |
|
Change in fair value of warrant and contingent value rights |
|
796,035 |
|
|
|
— |
|
|
|
735,921 |
|
|
|
— |
|
Other non-operating expense (income), net |
|
401 |
|
|
|
181 |
|
|
|
2,147 |
|
|
|
(2,888 |
) |
Total non-operating expenses, net |
|
811,331 |
|
|
|
18,600 |
|
|
|
655,661 |
|
|
|
26,486 |
|
Loss before income taxes |
|
(804,752 |
) |
|
|
(9,131 |
) |
|
|
(593,855 |
) |
|
|
(9,415 |
) |
Income tax expense |
|
144 |
|
|
|
129 |
|
|
|
350 |
|
|
|
233 |
|
Net loss |
$ |
(804,896 |
) |
|
$ |
(9,260 |
) |
|
$ |
(594,205 |
) |
|
$ |
(9,648 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(4.51 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.87 |
) |
|
$ |
(0.03 |
) |
Diluted |
$ |
(4.51 |
) |
|
$ |
(0.02 |
) |
|
$ |
(2.87 |
) |
|
$ |
(0.03 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
178,505 |
|
|
|
375,779 |
|
|
|
207,092 |
|
|
|
375,875 |
|
Diluted |
|
178,505 |
|
|
|
375,779 |
|
|
|
207,092 |
|
|
|
375,875 |
|
Core Scientific, Inc. Segment Results (in thousands, except percentages) (Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Digital Asset Self-Mining Segment |
(in thousands, except percentages) |
||||||||||||||
Digital asset self-mining revenue |
$ |
110,743 |
|
|
$ |
97,082 |
|
|
$ |
260,702 |
|
|
$ |
195,108 |
|
Cost of digital asset self-mining |
|
80,001 |
|
|
|
66,846 |
|
|
|
161,565 |
|
|
|
139,522 |
|
Digital Asset Self-Mining gross profit |
$ |
30,742 |
|
|
$ |
30,236 |
|
|
$ |
99,137 |
|
|
$ |
55,586 |
|
Digital Asset Self-Mining gross margin |
|
28 |
% |
|
|
31 |
% |
|
|
38 |
% |
|
|
28 |
% |
|
|
|
|
|
|
|
|
||||||||
Digital Asset Hosted Mining Segment |
|
|
|
|
|
|
|
||||||||
Digital asset hosted mining revenue from customers |
$ |
24,840 |
|
|
$ |
29,830 |
|
|
$ |
54,172 |
|
|
$ |
52,459 |
|
Cost of digital asset hosted mining services |
|
17,393 |
|
|
|
23,107 |
|
|
|
37,474 |
|
|
|
39,305 |
|
Digital Asset Hosted Mining gross profit |
$ |
7,447 |
|
|
$ |
6,723 |
|
|
$ |
16,698 |
|
|
$ |
13,154 |
|
Digital Asset Hosted Mining gross margin |
|
30 |
% |
|
|
23 |
% |
|
|
31 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
||||||||
HPC Hosting Segment |
|
|
|
|
|
|
|
||||||||
HPC hosting revenue |
$ |
5,519 |
|
|
$ |
— |
|
|
$ |
5,519 |
|
|
$ |
— |
|
Cost of HPC hosting services |
|
4,891 |
|
|
|
— |
|
|
|
4,891 |
|
|
|
— |
|
HPC Hosting gross profit |
$ |
628 |
|
|
$ |
— |
|
|
$ |
628 |
|
|
$ |
— |
|
HPC Hosting gross margin |
|
11 |
% |
|
|
— |
% |
|
|
11 |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
||||||||
Consolidated |
|
|
|
|
|
|
|
||||||||
Consolidated total revenue |
$ |
141,102 |
|
|
$ |
126,912 |
|
|
$ |
320,393 |
|
|
$ |
247,567 |
|
Consolidated cost of revenue |
$ |
102,285 |
|
|
$ |
89,953 |
|
|
$ |
203,930 |
|
|
$ |
178,827 |
|
Consolidated gross profit |
$ |
38,817 |
|
|
$ |
36,959 |
|
|
$ |
116,463 |
|
|
$ |
68,740 |
|
Consolidated gross margin |
|
28 |
% |
|
|
29 |
% |
|
|
36 |
% |
|
|
28 |
% |
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) Reorganization items, net; (vi) change in fair value of energy derivatives; (vii) change in the fair value of warrant and contingent value rights, (viii) business or site startup costs which are not reflective of the ongoing costs incurred after startup, (ix) bankruptcy advisory costs incurred related to reorganization which are not reflective of the ongoing costs incurred in post-emergence operations, and (x) certain additional non-cash 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 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
20231 |
|
|
|
2024 |
|
|
|
20231 |
|
Adjusted EBITDA |
|
|
|
|
|
||||||||||
Net loss |
$ |
(804,896 |
) |
|
$ |
(9,260 |
) |
|
$ |
(594,205 |
) |
|
$ |
(9,648 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
14,775 |
|
|
|
(36 |
) |
|
|
28,862 |
|
|
|
121 |
|
Income tax expense |
|
144 |
|
|
|
129 |
|
|
|
350 |
|
|
|
233 |
|
Depreciation and amortization |
|
29,477 |
|
|
|
20,473 |
|
|
|
58,473 |
|
|
|
40,567 |
|
Stock-based compensation expense |
|
8,494 |
|
|
|
14,280 |
|
|
|
7,434 |
|
|
|
26,553 |
|
Unrealized fair value adjustment on energy derivatives |
|
(1,465 |
) |
|
|
— |
|
|
|
(2,262 |
) |
|
|
— |
|
Gain (loss) on disposal of property, plant and equipment |
|
(268 |
) |
|
|
174 |
|
|
|
3,552 |
|
|
|
174 |
|
HPC startup costs |
|
4,601 |
|
|
|
— |
|
|
|
4,601 |
|
|
|
— |
|
Bankruptcy advisory costs |
|
(1,380 |
) |
|
|
— |
|
|
|
307 |
|
|
|
— |
|
Loss (gain) on debt extinguishment |
|
120 |
|
|
|
— |
|
|
|
170 |
|
|
|
(20,761 |
) |
Reorganization items, net |
|
— |
|
|
|
18,455 |
|
|
|
(111,439 |
) |
|
|
50,014 |
|
Change in fair value of warrant and contingent value rights |
|
796,035 |
|
|
|
— |
|
|
|
735,921 |
|
|
|
— |
|
Other non-operating expenses (income), net |
|
401 |
|
|
|
181 |
|
|
|
2,147 |
|
|
|
(2,888 |
) |
Other |
|
(2 |
) |
|
|
594 |
|
|
|
121 |
|
|
|
962 |
|
Adjusted EBITDA |
$ |
46,036 |
|
|
$ |
44,990 |
|
|
$ |
134,032 |
|
|
$ |
85,327 |
|
1 Certain prior year amounts have been reclassified for consistency with the current year presentation. |
|||||||||||||||
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240807926379/en/
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ir@corescientific.com
Media:
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Source: Core Scientific, Inc.
FAQ
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