Bitcoin mining company Core Scientific has announced improved financial results for the first quarter since emerging from bankruptcy. The company reported a total revenue of $179.3 million, representing a $58.6 million increase compared to the same period in 2023. Net income for the quarter reached $210.7 million, a significant increase from the net loss of $0.4 million reported in the first quarter of 2023. Core Scientific attributed this rise in net income to gains from obligations totaling $143.8 million and a decrease in Chapter 11 financing expenses.
According to Core Scientific, revenue from digital asset mining amounted to $150 million, while hosting revenue contributed $29.3 million. The company reported a gross margin of 46% for digital asset mining revenue in excess of mining costs, amounting to $68.4 million. This is a significant improvement compared to the previous year’s first quarter, which had a gross margin of 26% and mining revenue of $25.4 million.
The increase in overall mining revenue can be attributed to higher Bitcoin prices and Core Scientific’s mining capacity. The company stated that mining revenue was driven by a 134% increase in the price of Bitcoin and a 20% increase in their self-mining hash rate. This offset a 34% reduction in the amount of Bitcoin received due to a 73% rise in the global hash rate.
Hosting revenue also experienced growth, with a gross margin of 32% and revenue in excess of hosting costs reaching $9.3 million. This is compared to a gross margin of 28% and revenue of $6.4 million in the first quarter of the previous year. The increase in hosting revenue was primarily attributed to the addition of new digital asset mining clients, which drove a $6.7 million increase in hosting revenue. Operating expenses for the quarter decreased to $16.9 million from $24.2 million in the same period last year.
Core Scientific’s CEO, Adam Sullivan, expressed confidence in the company’s infrastructure and its ability to meet the growing demand for power and infrastructure required for high-performance computing. Sullivan sees this as a significant growth opportunity for the business.
In the fiscal first quarter of 2024, Core Scientific produced 2,825 self-mined Bitcoin, reportedly making it the leading publicly listed miner in North America. The company owns approximately 745 megawatts of infrastructure, which generated a total hash rate of 25.5 EH/s. This includes 19.3 EH/s from self-mining and 6.2 EH/s from hosting operations during the quarter.
Looking ahead, Core Scientific plans to strategically purchase mining equipment at lower prices following the Bitcoin halving event, which reduces miners’ revenue by half. The company received court approval to emerge from bankruptcy and relist its shares on the Nasdaq on January 16, marking the end of a 13-month restructuring process.