Core Scientific (CORZ) Q3 2024 earnings summary

Executive summary

• Achieved full contractual commitment for 500 MW of IT load with CoreWeave, securing $8.7 billion in potential revenue over 12 years and expanding digital infrastructure to over 1,200 MW contracted capacity.

• Reallocated 100 MW from bitcoin mining to HPC hosting, acquired a new Alabama data center with up to 66 MW potential, and completed major site expansions including 100 MW at Pecos and 72 MW at Denton.

• Strengthened capital structure by raising $460 million through a convertible note offering, repaying prior debt, reducing interest rates from up to 12.5% to 3%, and eliminating restrictive covenants.

• Emerged from Chapter 11 bankruptcy in January 2024, restructuring debt and equity, and eliminating $260 million in debt through mandatory conversion of convertible notes.

• Positioned for significant growth in digital infrastructure, targeting over 1.2 GW of critical IT load by 2027 and expanding HPC hosting capacity beyond 800 MW.

Financial highlights

• Q3 2024 revenue was $95.4 million: $68.1M from self-mining, $16.9M from hosted mining, $10.3M from HPC hosting; net loss was $455.3 million, mainly due to a $408.5 million non-cash mark-to-market adjustment on warrants and contingent liabilities.

• Adjusted EBITDA for Q3 2024 was $10.1 million (11% of revenue), down $18 million year-over-year; cash and cash equivalents at quarter-end were $253 million.

• For the nine months ended September 30, 2024, revenue increased 15% year-over-year to $415.7 million, with adjusted EBITDA of $144.2 million and gross profit of $116.3 million.

• Operating loss for Q3 2024 was $41.2 million; net loss per share was $(1.17) for Q3 2024.

• Total assets were $921.9 million and total liabilities $1.65 billion as of September 30, 2024.

Outlook and guidance

• Management expects to deliver 16 MW of revenue-generating HPC hosting infrastructure in 2024 and expand HPC hosting capacity beyond 800 MW, targeting over 1 GW of critical IT load.

• No further CapEx for Bitcoin mining in 2024; focus is on HPC hosting growth, new site acquisitions, and a planned miner refresh with new 3nm ASIC chips in 2025.

• Average fleet power price for active Bitcoin mining data centers projected at $4.20-$4.40/kWh.

• Company believes capital, cash flow, and liquidity are sufficient to fund operations and debt service for at least the next 12 months.