Core Scientific (CORZ) Q4 2024 earnings summary

Executive summary

• Achieved a strategic pivot from Bitcoin mining to high-performance computing (HPC) data center operations, highlighted by a $8.7 billion, 12-year contract with CoreWeave and infrastructure expansion to 1,300 MW by year-end 2024.

• Ended 2024 with $836.2 million in cash, strengthened the balance sheet by refinancing debt, raising $460M and $625M in convertible notes, and eliminating $260M in debt via mandatory conversion.

• Fiscal year 2024 revenue was $510.7 million, up $8.3 million year-over-year, with a net loss of $1.3 billion driven by non-cash mark-to-market adjustments on warrants and contingent value rights.

• Focused on diversifying the customer base, with active discussions to reduce CoreWeave's share of critical IT load below 50% by 2028.

• Strengthened leadership with strategic hires and improved operational execution capabilities.

Financial highlights

• Q4 2024 revenue was $94.9 million, down 33% year-over-year; full-year revenue was $510.7 million, primarily from Bitcoin mining.

• Q4 net loss was $265.5 million, mainly due to non-cash adjustments; full-year net loss was $1.3 billion.

• Adjusted EBITDA for Q4 was $13.3 million; full-year adjusted EBITDA was $157.4 million.

• Digital asset self-mining revenue declined 29% year-over-year to $79.9 million in Q4, with 974 Bitcoin earned versus 3,042 a year ago, partially offset by a 130% increase in Bitcoin price.

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

Outlook and guidance

• Plans to deliver 250 MW of HPC capacity to CoreWeave by year-end 2025, with the 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.

• Modeling a 22% statutory effective tax rate for 2025 and holding over $300 million in net operating loss carryforwards.

• 2025 catalysts include diversifying customer base, executing on HPC contracts, and expanding capacity via organic growth and M&A.