Total Revenue: Decreased by 22% to $502.4 million in FY 2023 compared to the previous year.
Net Loss: Improved significantly to $246.5 million, down from a $2.15 billion loss in FY 2022.
Adjusted EBITDA: Increased to $170.0 million in FY 2023, a substantial improvement from a negative $10.7 million in FY 2022.
Bitcoin Mining: Core Scientific led North American publicly listed miners with 13,762 self-mined bitcoins.
Infrastructure: Owned and managed 724 megawatts, the largest footprint among publicly listed miners in North America.
Efficiency: Improved energy efficiency of the self-mining fleet to 27.94 joules per terahash.
Future Growth: Developed a plan for over 20 EH/s of new self-mining hash rate.
On March 12, 2024, Core Scientific Inc (CORZQ) released its 8-K filing, announcing its financial results for the fiscal fourth quarter and full fiscal year 2023. Core Scientific, a leader in bitcoin mining and digital infrastructure, faced a challenging year with a decrease in total revenue but also achieved significant improvements in net loss and Adjusted EBITDA.
Core Scientific Inc (CORZQ) Reports Mixed Fiscal Year 2023 Results with Revenue Dip and Narrowed Net Loss
Company Overview
Core Scientific Inc operates in the blockchain and AI infrastructure space, offering services such as digital asset self-mining, premium hosting, and blockchain technology. The company operates two main segments: Equipment Sales and Hosting, and Mining. The former includes blockchain infrastructure, third-party hosting, and equipment sales, while the latter involves digital asset mining for the company’s account. Core Scientific generates revenue through consumption-based contracts, hosting services, and by participating in blockchain networks to earn digital currencies.
Fiscal Year 2023 Performance
The company reported a total revenue of $502.4 million for FY 2023, marking a 22% decrease from the previous year’s $640.3 million. This decline was attributed to the company’s exit from the equipment sales business and less profitable hosting contracts. Despite the revenue dip, Core Scientific significantly improved its net loss, reducing it by 89% to $246.5 million, compared to a net loss of $2.15 billion in FY 2022. This improvement was largely due to a decrease in non-cash impairments and better gross margins.
Adjusted EBITDA for FY 2023 stood at $170.0 million, a notable increase from a negative $10.7 million in the prior year. This was driven by lower non-cash impairments on digital assets, reduced power costs, and a decrease in operating expenses. The company also highlighted its bitcoin mining achievements, having earned 13,762 bitcoins through self-mining, more than any other publicly listed miner in North America.
Challenges and Financial Achievements
Core Scientific faced challenges such as increased mining difficulty and the termination of less profitable hosting contracts. However, the company’s financial achievements, including the reduction in net loss and the increase in Adjusted EBITDA, are significant indicators of its ability to navigate a volatile market and improve operational efficiency.
CEO Adam Sullivan expressed optimism for the future, citing the company’s strong operating performance and positioning for continued growth based on current bitcoin prices and operating performance. The company has also completed all payments for new bitcoin miners for 2024 and is accelerating the delivery and deployment of new Bitmain S21 miners.
Analysis and Future Outlook
Core Scientific’s performance in FY 2023 reflects a resilient business model capable of adjusting to market conditions. The company’s focus on improving energy efficiency and expanding its self-mining hash rate demonstrates a commitment to growth and operational excellence. With the expansion of its hosting business and a strategic contract with CoreWeave, Inc., Core Scientific is diversifying its revenue streams and enhancing shareholder value.
The company’s financial health has been strengthened post-restructuring, and with a plan for significant self-mining growth, Core Scientific is well-positioned to capitalize on the upcoming halving and the future of high-value compute.
For more detailed financial information and to participate in the live webcast, investors and interested parties can refer to the Investor Relations page of Core Scientific’s website.
Value investors and potential GuruFocus.com members interested in the blockchain and digital asset mining industry may find Core Scientific’s latest financial results and strategic initiatives indicative of the company’s potential for long-term growth and value creation.
Explore the complete 8-K earnings release (here) from Core Scientific Inc for further details.
This article first appeared on GuruFocus.