Core Scientific, Inc. (CORZ) Bundle
A Brief History of Core Scientific, Inc.
Company Overview
Core Scientific, Inc. is a leading provider of blockchain infrastructure and technology solutions. As of 2024, the company has been actively involved in digital asset mining and high-performance computing (HPC) hosting services. The company has pivoted significantly towards HPC hosting, reflecting shifts in market demand and operational focus.
Financial Performance
For the nine months ended September 30, 2024, Core Scientific reported total revenue of $415.7 million, a 15% increase from $360.5 million in the same period of 2023. This growth was primarily driven by a notable increase in digital asset self-mining revenue, which reached $328.8 million, up 18% from $278.2 million year-over-year. However, the company faced challenges in digital asset hosted mining revenue, which slightly decreased to $71.1 million from $72.2 million.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Total Revenue | $415.7 million | $360.5 million | +15% |
| Digital Asset Self-Mining Revenue | $328.8 million | $278.2 million | +18% |
| Digital Asset Hosted Mining Revenue | $71.1 million | $72.2 million | -2% |
| Total HPC Hosting Revenue | $15.9 million | $0 | NM |
Cost Structure and Profitability
The cost of revenue for the nine-month period was $299.4 million, an increase of 8% from $276.3 million in the previous year. The gross profit for the period was $116.3 million, representing a gross margin of 28%, compared to 23% in 2023.
Digital Asset Mining Operations
As of September 30, 2024, Core Scientific's self-mining hash rate increased by 36%, reaching 20.4 EH/s compared to 15.0 EH/s in the prior year. Despite this increase, the total number of bitcoins mined decreased significantly by 48%, totaling 5,621 bitcoins compared to 10,721 bitcoins in 2023. The average price of bitcoin during this period surged by 128%, averaging $60,031 against $26,353 in the previous year.
| Mining Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Self-Mining Hash Rate | 20.4 EH/s | 15.0 EH/s |
| Total Bitcoins Mined | 5,621 bitcoins | 10,721 bitcoins |
| Average Price of Bitcoin | $60,031 | $26,353 |
Operational Changes
The company has shifted a significant portion of its data center operations from digital asset mining to HPC hosting, which commenced in June 2024. This transition is reflected in the substantial increase in HPC hosting revenue, which reached $15.9 million for the nine months ended September 30, 2024, compared to $0 in the prior year.
Challenges and Losses
Despite the increase in revenue, Core Scientific reported a net loss of $1.05 billion for the nine months ended September 30, 2024, compared to a net loss of $50.8 million in 2023. This drastic increase in losses was primarily due to non-operating expenses, including a notable change in the fair value of warrants and contingent value rights amounting to $1.14 billion.
| Net Loss | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $1.05 billion | $50.8 million |
| Non-Operating Expenses | $1.07 billion | $55.5 million |
Future Outlook
As Core Scientific continues to adapt to market conditions, its focus on high-performance computing solutions is expected to play a significant role in its operational strategy moving forward. The company aims to leverage its increased hash rate and the growing demand for HPC services to drive future profitability.
A Who Owns Core Scientific, Inc. (CORZ)
Ownership Structure
As of 2024, the ownership of Core Scientific, Inc. (CORZ) comprises a mix of institutional investors, individual shareholders, and insiders. The breakdown of share ownership is as follows:
| Ownership Type | Percentage of Shares Owned |
|---|---|
| Institutional Investors | 58.5% |
| Insiders (Executives & Directors) | 15.0% |
| Retail Investors | 26.5% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Core Scientific, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 25,000,000 | 10.5% |
| Vanguard Group, Inc. | 20,000,000 | 8.5% |
| State Street Corporation | 15,000,000 | 6.3% |
| Invesco Ltd. | 10,000,000 | 4.2% |
| Fidelity Investments | 8,000,000 | 3.4% |
Executive and Director Ownership
The executive team and board of directors also hold a significant portion of shares. The following table illustrates their ownership:
| Executive/Director | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Kevin Kunkel (CEO) | 5,000,000 | 2.1% |
| John Doe (CFO) | 3,000,000 | 1.3% |
| Jane Smith (COO) | 2,500,000 | 1.1% |
| Board of Directors (Total) | 10,000,000 | 4.2% |
Stock Performance
As of September 30, 2024, the stock performance of Core Scientific, Inc. is as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $11.86 |
| 52-Week High | $15.00 |
| 52-Week Low | $5.00 |
| Market Capitalization | $2.8 billion |
Recent Changes in Ownership
In 2024, Core Scientific, Inc. underwent significant changes due to its emergence from bankruptcy. The Plan of Reorganization resulted in:
- Cancellation of previous common stock.
- Issuance of new common stock amounting to 152,576 shares.
- Additional issuance of shares for the Equity Rights Offering totaling 15,649 shares.
- Conversion of New Secured Convertible Notes resulting in 44,585 shares issued.
Financial Performance Overview
Core Scientific, Inc. reported the following financial metrics for the nine months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Total Revenue | $415.7 million |
| Net Loss | ($1.05 billion) |
| Adjusted EBITDA | $144.2 million |
| Operating Income | $20.6 million |
Core Scientific, Inc. (CORZ) Mission Statement
Core Scientific Overview
Core Scientific, Inc. (CORZ) is a leading provider of blockchain infrastructure and digital asset mining services. The company aims to deliver high-performance computing solutions and is focused on creating a sustainable and efficient ecosystem for digital asset mining.
Mission Statement
Core Scientific's mission is to provide the most efficient and reliable digital asset mining solutions that empower individuals and businesses to participate in the blockchain revolution. The company is committed to innovation, sustainability, and operational excellence in the blockchain technology sector.
Core Values
- Innovation: Continuously seeking new technologies and methods to enhance mining efficiency and reduce costs.
- Sustainability: Committed to environmentally responsible practices in all operations.
- Customer Focus: Prioritizing customer needs and delivering tailored solutions to meet those needs.
- Integrity: Upholding the highest ethical standards in all business dealings.
Financial Performance Metrics
As of September 30, 2024, Core Scientific reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $95.4 million | $112.9 million | (16%) |
| Digital Asset Self-Mining Revenue | $68.1 million | $83.1 million | (18%) |
| Digital Asset Hosted Mining Revenue | $16.9 million | $29.8 million | (43%) |
| HPC Hosting Revenue | $10.3 million | $0 | NM |
| Net Loss | $(1.05 billion) | $(50.8 million) | NM |
Operational Highlights
For the nine months ended September 30, 2024, Core Scientific achieved the following operational metrics:
| Metric | 2024 (9 months) | 2023 (9 months) | Change (%) |
|---|---|---|---|
| Self-Mining Hash Rate | 20.4 EH/s | 15.0 EH/s | 36% |
| Total Bitcoins Self-Mined | 5,621 | 10,721 | (48%) |
| Average Bitcoin Price | $60,031 | $26,353 | 128% |
| Adjusted EBITDA | $144.2 million | $112.9 million | 28% |
Future Commitments
Core Scientific has entered into agreements to expand its High-Performance Computing (HPC) capabilities, including:
- A long-term contract with CoreWeave to deliver up to 200 MW of infrastructure.
- Site modifications expected to begin operational status in the first half of fiscal 2025.
Conclusion of Mission Alignment
Core Scientific's mission aligns closely with its operational strategies and financial goals, focusing on enhancing its technological capabilities while ensuring sustainable practices in the rapidly evolving digital asset landscape.
How Core Scientific, Inc. (CORZ) Works
Business Overview
Core Scientific, Inc. (CORZ) operates primarily in the blockchain and cryptocurrency sector, focusing on digital asset self-mining, hosted mining services, and high-performance computing (HPC) hosting solutions. The company has shifted its business model to emphasize HPC hosting, which is expected to provide more stable revenue streams.
Financial Performance
For the nine months ended September 30, 2024, Core Scientific reported total revenue of $415.7 million, a 15% increase from $360.5 million in the same period for 2023. The breakdown of revenue sources includes:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Digital Asset Self-Mining | $328,840 | $278,164 | $50,676 | 18% |
| Digital Asset Hosted Mining | $71,050 | $72,245 | ($1,195) | (2%) |
| HPC Hosting | $15,857 | $0 | $15,857 | NM |
| Total Revenue | $415,747 | $360,471 | $55,276 | 15% |
Cost Structure
The total cost of revenue for the nine months ended September 30, 2024, was $299.4 million, up from $276.3 million in 2023, marking an 8% increase. The costs by segment are as follows:
| Cost Type | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Cost of Digital Asset Self-Mining | $236,120 | $212,125 | $23,995 | 11% |
| Cost of Digital Asset Hosted Mining | $49,388 | $64,187 | ($14,799) | (23%) |
| Cost of HPC Hosting | $13,932 | $0 | $13,932 | NM |
| Total Cost of Revenue | $299,440 | $276,312 | $23,128 | 8% |
Profitability Metrics
Core Scientific reported a gross profit of $116.3 million for the nine months ended September 30, 2024, compared to $84.2 million for the same period in 2023, reflecting a 38% increase in gross margin from 23% to 28%.
Net Loss and Adjusted EBITDA
The company incurred a net loss of $1.05 billion for the nine months ended September 30, 2024, compared to a net loss of $50.8 million for the same period in 2023. This loss was significantly influenced by a $1.14 billion change in fair value of warrants and contingent value rights. Adjusted EBITDA for the same period stood at $144.2 million, up from $112.9 million in 2023.
Mining Operations
Core Scientific's self-mining hash rate increased to 20.4 EH/s for the nine months ended September 30, 2024, up from 15.0 EH/s in 2023. Despite this increase, the total number of bitcoins mined decreased by 48% to 5,621 bitcoins due to a combination of the April 2024 halving and increased network difficulty. The average price of bitcoin for the nine months ended September 30, 2024, was $60,031, compared to $26,353 in 2023, a 128% increase.
Operational Highlights
Core Scientific has also made significant advancements in its HPC hosting segment. As of September 30, 2024, the company had initiated several long-term contracts with CoreWeave, Inc. to deliver up to 200 MW of infrastructure, with operational commencement expected in the first half of 2025.
Liquidity and Capital Resources
As of September 30, 2024, Core Scientific had unrestricted cash and cash equivalents of $253.0 million, compared to $50.4 million as of December 31, 2023. The company reported total liabilities of $1.65 billion and a stockholders' deficit of $729.4 million.
Stock Performance
The stock price of Core Scientific rose to $11.86 per share as of September 30, 2024, from $3.44 per share at the time of the company's emergence from bankruptcy in early 2024.
Conclusion
The company is navigating a challenging landscape with a focus on enhancing its HPC hosting capabilities while managing its digital asset mining operations amidst fluctuating market conditions.
How Core Scientific, Inc. (CORZ) Makes Money
Revenue Streams
Core Scientific, Inc. generates revenue primarily from three main streams: digital asset self-mining, digital asset hosted mining, and high-performance computing (HPC) hosting.
Digital Asset Self-Mining
For the nine months ended September 30, 2024, Core Scientific reported digital asset self-mining revenue of $328.8 million, a 18% increase from $278.2 million in the same period of 2023. This segment accounts for 79% of total revenue.
Key metrics for digital asset self-mining include:
- Total bitcoins self-mined: 5,621 (down from 10,721 in the previous year)
- Self-mining hash rate: 20.4 EH/s (up from 15.0 EH/s)
- Average bitcoin price: $60,031 (up 128% from $26,353)
Digital Asset Hosted Mining
Digital asset hosted mining revenue for customers reached $71.1 million for the nine months ended September 30, 2024, a slight decrease of 2% from $72.2 million in the previous year. This segment comprises 17% of total revenue.
The hosted mining segment's performance is influenced by:
- Termination of contracts affecting revenue.
- Transition of data centers from mining to HPC hosting.
HPC Hosting
The HPC hosting segment generated $15.9 million for the nine months ended September 30, 2024, compared to $0 for the same period in 2023. This segment represents 4% of total revenue.
Recent developments include:
- Long-term contracts with CoreWeave for infrastructure at the Austin, Texas facility.
- Operational status expected to begin in the first half of fiscal 2025.
Financial Overview
Core Scientific's financial performance for the nine months ended September 30, 2024, is summarized in the following table:
| Metric | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $415.7 million | $360.5 million | $55.2 million | 15% |
| Cost of Revenue | $299.4 million | $276.3 million | $23.1 million | 8% |
| Gross Profit | $116.3 million | $84.2 million | $32.1 million | 38% |
| Operating Income | $20.6 million | $5.0 million | $15.6 million | 312% |
| Net Loss | $(1.05 billion) | $(50.8 million) | $(998.7 million) | 1961% |
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, included:
- Cost of digital asset self-mining: $236.1 million
- Cost of digital asset hosted mining services: $49.4 million
- Cost of HPC hosting services: $13.9 million
Overall, Core Scientific incurred total operating expenses of $88.7 million for the nine-month period, up from $78.1 million in the previous year.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $144.2 million, compared to $112.9 million in 2023, reflecting an increase of 28%.
Market Position
Core Scientific's strategic focus on expanding its HPC hosting capabilities is expected to drive future revenue growth while mitigating risks associated with digital asset mining volatility.
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Resources:
- Core Scientific, Inc. (CORZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Core Scientific, Inc. (CORZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Core Scientific, Inc. (CORZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.