Core Scientific, a Bitcoin mining company, has announced improved financial results for the first quarter since emerging from bankruptcy. The company reported a total revenue of $179.3 million, marking a significant 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 increase in net income was primarily driven by gains from obligations totaling $143.8 million and a decrease in Chapter 11 financing expenses, according to the company.
Core Scientific reported that revenue from digital asset mining reached $150 million, while hosting revenue contributed $29.3 million. The revenue from digital asset mining, after deducting mining costs, stood at $68.4 million, reflecting a 46% gross margin. This is compared to $25.4 million and a 26% gross margin in the same period of the previous year.
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% increase in the price of Bitcoin and a 20% increase in their self-mining hash rate. These gains offset a 34% reduction in the amount of Bitcoin received due to a 73% rise in the global hash rate.
Hosting revenue, after deducting hosting costs, was $9.3 million, representing a 32% gross margin. This is compared to $6.4 million and a 28% gross margin in the first quarter of the previous year. The increase in hosting revenue was primarily due to onboarding new digital asset mining clients, which resulted in 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.
During an earnings call, Core Scientific’s CEO Adam Sullivan expressed confidence in the company’s infrastructure and its potential to meet the growing demand for power and infrastructure required for high-performance computing. He sees this as the next major growth opportunity for the business.
In the fiscal first quarter of 2024, Core Scientific produced 2,825 self-mined Bitcoin, reportedly more than any other publicly listed miner in North America. The company owns approximately 745 megawatts of infrastructure that generated a total hash rate of 25.5 EH/s, with 19.3 EH/s from self-mining and 6.2 EH/s from hosting operations.
Following the Bitcoin halving event, which reduces miners’ revenue by half, 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, concluding a 13-month restructuring process.