Core Scientific (CORZ) Q4 2024 earnings summary

Executive summary

• Achieved a major strategic pivot in 2024, shifting from Bitcoin mining to high-performance computing (HPC) data center operations, highlighted by landmark contracts with CoreWeave totaling over $10 billion and significant infrastructure expansion to 1,300 MW.

• Ended 2024 with $836.2 million in cash and cash equivalents, improved balance sheet through Chapter 11 restructuring, debt reduction, and successful convertible note offerings.

• Fiscal year 2024 revenue was $510.7 million, up year-over-year, but net loss reached $1.3 billion due to non-cash mark-to-market adjustments on warrants and contingent value rights.

• Strategic focus for 2025 includes diversifying the customer base, executing on existing HPC contracts, expanding capacity organically and via M&A, and capturing opportunities in AI computing.

• Infrastructure capacity expanded with 100 MW at Pecos, TX, 100 MW approved at Denton, TX, and a 16 MW Austin data center delivered ahead of schedule.

Financial highlights

• Q4 2024 total revenue was $94.9 million, down 33% year-over-year; adjusted EBITDA was $13.3 million; Q4 net loss was $265.5 million, mainly from non-cash adjustments.

• Digital asset self-mining revenue was $79.9 million (down 29% YoY), with 974 Bitcoin earned versus 3,042 a year ago, partially offset by a 130% YoY increase in Bitcoin price.

• Digital asset hosted mining revenue fell to $6.5 million from $30 million YoY as hosted contracts sunset; gross margin improved to 36%.

• HPC hosting revenue reached $8.5 million in Q4, with 16.5 MW of critical IT load online and gross margin of 9%.

• Full-year consolidated gross margin was 24%; Q4 consolidated gross margin was 5%, down from 28% YoY.

Outlook and guidance

• Targeting delivery of 250 MW of HPC capacity to CoreWeave by year-end 2025, with full 590 MW online by early 2027.

• Pathway to 1.3 GW+ critical IT load by 2027, with ~900 MW HPC and ~400 MW bitcoin mining contracted.

• No further CapEx planned for Bitcoin mining until new Block ASIC chips are procured in H2 2025.

• Statutory effective tax rate modeled at 22% for 2025; over $300 million in net operating loss carryforwards.

• Management expects accelerated growth in 2025, driven by strong demand for HPC infrastructure and continued strength in Bitcoin mining.