Core Scientific (CORZ) Q2 2024 earnings summary

Executive summary

• Achieved major milestones including the delivery of a 16 MW HPC data center in Austin ahead of schedule, expansion to 830 MW operational infrastructure, and the launch of the HPC Hosting segment with contracts totaling up to 398 MW, primarily with CoreWeave, representing $6.7 billion in potential revenue over 12 years.

• Eliminated $260 million in debt via mandatory conversion of secured convertible notes, reducing total debt to $318 million by July 2024 and strengthening the balance sheet.

• Emerged from Chapter 11 bankruptcy in January 2024, restructuring capital with new equity, warrants, and notes.

• Maintained leadership in bitcoin mined among North American public companies since 2021.

• Signed agreement with Block for 15 exahash of new 3-nanometer ASIC chips to refresh and expand the self-mining fleet.

Financial highlights

• Q2 2024 revenue was $141.1 million, up 11% year-over-year, with $110.7 million from self-mining, $24.8 million from hosted mining, and $5.5 million from HPC hosting.

• Gross profit for Q2 2024 was $38.8 million (28% margin), operating income $6.6 million, and adjusted EBITDA $46 million.

• Net loss for Q2 2024 was $804.9 million, mainly due to a $796 million non-cash mark-to-market adjustment on warrants and contingent value rights.

• Cash and cash equivalents were $96.1 million as of June 30, 2024, up from $50 million at 2023 year-end.

• Cash cost to self-mine a bitcoin in Q2 2024 was $29,879, up from $13,471 in Q2 2023, reflecting higher power and operational costs.

Outlook and guidance

• Targeting 21.8 exahash self-mining hash rate and ~800 MW operational bitcoin infrastructure by year-end 2024.

• Anticipate average Bitcoin mining fleet power price of $0.042-$0.044/kWh for 2024.

• Plan to acquire 10,000-15,000 additional miners and invest $13M-$19M in CapEx for fleet refresh.

• On track to deliver 200 MW of HPC hosting in H1 2025, 70 MW in H2 2025, and 112 MW in H1 2026, with major revenue ramp beginning in 2025.

• Management expects continued growth in HPC hosting, with CoreWeave contracts anticipated to deliver stable, long-term, high-margin revenue.