Core Scientific Announces January 2024 Production and Operations Updates
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Insights
The production and operational updates from Core Scientific, notably the production of 1,027 self-mined bitcoins and 354 hosted bitcoins in January, alongside the expansion of its self-mining energized hash rate and improved energy efficiency, are significant factors for investors monitoring the company's operational efficiency and growth trajectory. The deployment of new, more efficient miners and the company's support of the local grid suggest a strategic approach to scaling operations while potentially reducing operational costs.
From a financial standpoint, the sale of 1,114 bitcoins yielding approximately $47.8 million in January reflects the company's revenue-generating capabilities. However, it is important to note the reduction in the number of bitcoins produced and sold compared to the previous month, which could be indicative of market trends or operational challenges. The company's capital structure, as revealed through its issuance of various securities, including new common stock and warrants, provides insights into its funding strategies and the potential for future dilution of shareholder value.
Core Scientific's operational update indicates a competitive stance in the North American bitcoin mining landscape, especially considering the claim of producing more bitcoins in 2023 than any other listed company in the region. The expansion plans for additional infrastructure at Texas sites and improvements in mining fleet efficiency are likely to appeal to investors interested in the company's long-term growth potential.
Furthermore, the mention of upcoming halving events is crucial as they historically affect bitcoin's value and miners' profitability. The company's proactive measures to improve efficiency ahead of such events suggest strategic planning that may mitigate the impact of reduced block rewards on profitability. The release of detailed shareholder information, including the mechanics of newly issued warrants, provides transparency and could influence investor sentiment.
Core Scientific's engagement in grid support activities by reducing power consumption during peak demand highlights a symbiotic relationship between energy-intensive industries like bitcoin mining and local utility providers. This practice not only illustrates corporate responsibility but also suggests a potential cost-saving measure through demand response programs that compensate participants for lowering energy consumption during peak periods.
The emphasis on energy efficiency improvements, as seen in the reduction of energy consumption per terahash, aligns with broader industry trends toward sustainable mining practices. Such improvements are not only environmentally beneficial but can also enhance the company's public image and potentially result in operational cost savings, especially in the face of fluctuating energy prices.
- Operated approximately 218,000 owned and hosted bitcoin miners
- Produced 1,027 self-mined bitcoin and an estimated 354 bitcoin from hosted miners in January
- Expanded self-mining energized hash rate by 1.7 EH/s with new miner deployments
- Improved self-mining fleet energy efficiency by five percent, to 26.44 Joules per Terahash (J/TH)
“Core Scientific produced 13,762 bitcoin in 2023, more than any other listed company in
“Our ongoing deployment of new, more efficient miners in January not only increased our energized hash rate, but also improved our fleet efficiency. Along with multiple additional initiatives well underway, we believe improving our fleet efficiency helps to position us more favorably for the upcoming halving,” Mr. Sullivan added.
Key Metrics Summary
Metric |
January 2024 |
December 2023 |
||
Self-Mining Bitcoin Produced1 |
1,027 |
|
1,177 |
|
Hosting Bitcoin Produced2 |
354 |
|
449 |
|
Average Self-Mined Bitcoin Produced/Day |
33.1 |
|
38.0 |
|
Self-Mining Energized Hash rate3 |
18.6 |
|
16.9 |
|
Hosting Energized Hash rate4 |
6.2 |
|
6.3 |
|
Total Energized Hash rate |
24.8 |
|
23.2 |
|
Bitcoin Sold |
1,114 |
|
1,211 |
|
Bitcoin Sales Proceeds ($USD) |
Appx. |
|
Appx. |
|
Average Self-Mining Fleet Efficiency (J/TH)5 |
26.44 |
|
27.94 |
Data Centers
As of month-end, the Company operated approximately 218,000 bitcoin miners for both self-mining and hosting, representing a total energized hash rate of 24.8 EH/s at its data centers in
Self-Mining
Core Scientific produced 1,027 bitcoin in January from its owned fleet of miners. As of month end, the Company operated approximately 167,000 owned bitcoin miners, accounting for approximately
Hosting Services
In addition to its self-mining fleet, Core Scientific provided data center hosting services, technology and operating support for approximately 51,000 hosted, customer-owned bitcoin miners, representing approximately
Grid Support
The Company reduced the consumption of power at its data centers on several occasions in January, delivering 18,487 megawatt hours to local grid partners. By supporting the grid in such a fashion, Core Scientific helps grid operators keep power flowing to their customers when temperatures rise and air conditioning use increases, and when temperatures drop and heating use increases. Core Scientific works with utility companies and the communities in which it operates to enhance electrical grid stability.
New Miner Deployments
The Company completed the deployment of 28,400 new Bitmain S19j XP miners procured from Bitmain under a contract announced on September 21, 2023. The new miners are rated to operate at between 141 and 151 Terahash (“TH”) and an average of approximately 22 J/TH, increasing energized hash rate while also helping to improve the efficiency of the Company’s self-mining fleet. Core Scientific expects to deploy an additional 12,600 Bitmain S21 miners by the end of July 2024, representing 2.5 EH/s in energized hash rate and operating at 17.5 J/TH.
Shareholder Inquiries
The following reflects questions received from shareholders regarding Core Scientific’s listing on the Nasdaq Global Select Market on January 24, 2024, with responses and references provided by the Company:
The Company issued the following securities as part of its emergence and listing:
Security Type |
CUSIP No. |
|
Ticker |
|
New Common Stock |
21874A 106 |
|
CORZ |
|
Tranche 1 Warrants |
21874A 114 |
|
CORZW |
|
Tranche 2 Warrants |
21874A 130 |
|
CORZZ |
|
New Convertible Notes |
21874A AB2 |
|
N/A |
|
New Secured Notes |
21874A AA4 |
|
N/A |
|
Contingent Value Rights |
21874A 122 |
|
N/A |
Core Scientific published an Emergence Update presentation on January 22, 2024, providing information of interest to shareholders and noteholders. Answers to the following questions can be found below or on the presentation slide numbers referenced below:
No. |
Question |
Response |
||
1 |
What is the duration and exercise price of the new warrants? |
Tranche 1 warrants: 3 years, |
||
2 |
What is the Company’s capital structure as of the listing date? |
See slide #9 of January 22, 2024 Emergence Update Slides |
||
3 |
How many shares of new stock have been issued? |
The Company issued 184,998,580 shares of New Common Stock |
||
4 |
How do I contact Computershare? |
+1-800-564-6253 |
||
5 |
What should I have received if I held my old Core Scientific shares as of the effective date? |
See slide #19 and #20 of January 22, 2024 Emergence Update Slides |
ABOUT CORE SCIENTIFIC
Core Scientific is one of the largest bitcoin miners and hosting solutions providers for bitcoin mining in
FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “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. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, which could include, but are not limited to, the following: risks and uncertainties relating to the Company’s ability to achieve significant cash flows from operations; the effects of the emergence from the Company’s chapter 11 cases on the Company’s liquidity, results of operations and business; the trading price and volatility of the Company’s common stock; the comparability of the Company’s post-emergence financial results to its historical results and the projections filed with the bankruptcy court in the Company’s chapter 11 cases; changes in the Company’s business strategy and performance, including as a result of changes to the Company’s board of directors or management; the possibility that the Company may be unable to achieve its business and strategic goals; the Company’s post-bankruptcy capital structure; attraction and retention of key personnel; the Company’s ability to achieve expected benefits from restructuring activities; restrictions on the Company’s operations contained in the agreements governing the Company’s indebtedness; the Company’s ability to generate sufficient cash to reduce its indebtedness and its potential need and ability to incur further indebtedness; the impact of the halving event; actions taken by third parties, including the Company’s creditors and other stakeholders, as well as other risk factors set forth in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including those identified in the Company’s reports filed with the
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1 Self-Mining Bitcoin Produced represents bitcoin rewards produced by bitcoin miners owned and operated by Core Scientific
2 Hosting Bitcoin Produced represents estimated bitcoin rewards produced by hosted customer-owned miners operated by Core Scientific, including bitcoin rewards paid to the Company pursuant to proceeds sharing agreements
3 Self-Mining Energized Hash Rate represents the total rated capacity of all Company-owned bitcoin miners installed and operating in Core Scientific’s data centers
4 Hosting Energized Hash Rate represents the total rated capacity of all hosted bitcoin miners owned by customers, installed and operating in Core Scientific’s data centers
5 Average Self-Mining Fleet Efficiency (J/TH) represents the weighted average power consumption in Joules per terahash based on the rated efficiency and capacity of each model of miner operating in Core Scientific’s owned self-mining fleet
View source version on businesswire.com: https://www.businesswire.com/news/home/20240205442857/en/
Investors:
ir@corescientific.com
Media:
press@corescientific.com
Source: Core Scientific, Inc.
FAQ
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