Core Scientific, a Bitcoin mining firm, has announced improved financial results for the first quarter since emerging from bankruptcy. The company reported a total revenue of $179.3 million, which is $58.6 million higher than 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 in the first quarter of 2023. The rise in net income was primarily driven by gains from obligations totaling $143.8 million and a decrease in Chapter 11 financing expenses.
According to Core Scientific, revenue from digital asset mining reached $150 million, while hosting revenue contributed $29.3 million. The digital asset mining revenue in excess of mining costs stood at $68.4 million, reflecting a 46% gross margin. In comparison, the same period of the previous year had a digital asset mining revenue of $25.4 million and a 26% gross margin.
The increase in overall mining revenue can be attributed to higher Bitcoin prices and Core’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. These factors offset the 34% reduction in the amount of Bitcoin received due to a 73% rise in the global hash rate.
Hosting revenue in excess of hosting costs was $9.3 million, representing a 32% gross margin. This is an improvement from the first quarter of the previous year, which had a hosting revenue of $6.4 million and a 28% gross margin. The increase in hosting revenue was mainly due to onboarding new digital asset mining clients, resulting in a $6.7 million increase in hosting revenue. Operating expenses for the quarter totaled $16.9 million, down from $24.2 million in the same period last year.
During an earnings call, Core Scientific’s CEO Adam Sullivan expressed confidence in the company’s infrastructure to meet the growing demand for power and infrastructure required for high-performance computing. He sees this as the next major growth opportunity for the business.
In the fiscal first quarter of 2024, Core Scientific produced 2,825 self-mined Bitcoin, reportedly more than any other 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.
Following the Bitcoin halving event, which halves miners’ revenue, Core Scientific is planning strategic mining equipment purchases at lower prices. 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.