Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $95 million, with a gross loss of $0.2 million and an operating loss of $41 million, reflecting lower post-halving hash prices and higher operating expenses [17][18] - The net loss for Q3 2024 was $455 million, significantly higher than the $41 million net loss in the same period last year, primarily due to a $408.5 million non-cash mark-to-market adjustment [31][32] - Adjusted EBITDA for Q3 2024 was $10 million, a year-over-year decrease of $18 million [32] Business Line Data and Key Metrics Changes - Digital asset self-mining revenue decreased by 18% year-over-year to $68.1 million, driven by a 62% decrease in the number of Bitcoin earned due to the April halving [21][22] - HPC hosting revenue was $10.3 million, exceeding costs of revenue by $1.3 million, resulting in a GAAP gross margin of 13% [24] - Digital asset self-mining segment gross margin was negative 9%, while HPC hosting had a non-GAAP gross margin of 27% when excluding direct pass-through power costs [29][26] Market Data and Key Metrics Changes - The company operated approximately 175,000 miners in its self-mining fleet, with a self-mining to hosted mining mix of 89% to 11% [33] - Power costs decreased to $0.038 per kilowatt hour from $0.045 per kilowatt hour year-over-year [30] Company Strategy and Development Direction - The company is focusing on expanding its HPC hosting business, with plans to secure additional power from local grid partners and acquire new sites [48][49] - The company aims to convert existing sites to HPC hosting, targeting a total HPC hosting capacity of over 1 gigawatt by the end of 2027 [52] - The company has secured a contract with CoreWeave valued at up to $8.7 billion over 12 years, indicating strong demand for high-powered data center infrastructure [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about favorable market fundamentals driving strong demand for data center infrastructure [9] - The company anticipates improvements in margins over time as it increases critical IT load without incurring additional operating costs [28] - Management highlighted the potential for significant value creation in HPC hosting and the Bitcoin mining business as market conditions improve [60] Other Important Information - The company completed a $460 million convertible note offering, which significantly improved its capital structure and eliminated previous debt restrictions [14][35] - The company expects to begin delivery of powered infrastructure for HPC hosting by the end of the first half of 2025 [54] Q&A Session Summary Question: Are there conversations with potential customers for the 100 megawatts allocated to HPC? - Management confirmed that conversations began earlier in the year and are ongoing, indicating a competitive process for the capacity [63] Question: What drove the higher-than-expected HPC revenue? - The CFO explained that a one-time adjustment for early delivery contributed to the higher revenue [66] Question: What is the plan for construction and leasing for the 100-megawatt transition? - Management stated that they aim to secure a client and contract before incurring capital expenditures [68] Question: Any updates on expanding power capacity at existing HPC sites? - Management indicated potential for an additional 300 megawatts across existing sites, with ongoing discussions [73] Question: Thoughts on the implications of the Presidential Election for the Bitcoin mining industry? - Management noted that strong support for Bitcoin and energy production from political figures could serve as tailwinds for the industry [75] Question: What are the potential deal structures for new sites? - Management indicated a focus on single-tenant buildings and build-to-suit arrangements for new clients [78] Question: How has the market changed regarding rental rates since the CoreWeave deal? - Management noted that lease rates have increased due to strong demand and clients covering some capital expenditures [82] Question: What is the competitive landscape for new sites? - Management highlighted strong demand and ongoing discussions with multiple clients, indicating a competitive process [88] Question: Will the new block chips require significant retrofitting of existing facilities? - Management stated that the new block chips will primarily focus on refreshing the existing fleet without significant infrastructure changes [100] Question: What is the status of supply chain issues? - Management expressed confidence in overcoming supply chain challenges and securing necessary components [108]

Revenue Performance - Total revenue decreased by $17.6 million or 16%, to $95.4 million for the three months ended September 30, 2024, from $112.9 million for the same period in 2023[79]. - Digital asset self-mining revenue decreased by $14.9 million or 18%, to $68.1 million for the three months ended September 30, 2024, primarily due to a 62% decrease in bitcoin mined[80]. - Total digital asset hosted mining revenue from customers decreased by $10.1 million or 38%, to $16.9 million for the three months ended September 30, 2024, driven by the termination of contracts with several customers[81]. - Consolidated total revenue for the three months ended September 30, 2024, was $95.4 million, a decrease from $112.9 million in the same period of 2023, reflecting a decline of approximately 15%[105]. - Digital asset self-mining revenue was $68.1 million for the three months ended September 30, 2024, down 18% from $83.1 million in the prior year[141]. - Total revenue for the three months ended September 30, 2024, was $95.4 million, a decrease of 15.5% from $112.9 million for the same period in 2023[141]. Operating Loss and Expenses - Operating loss increased to $41.2 million for the three months ended September 30, 2024, compared to a loss of $12.0 million for the same period in 2023[77]. - Total operating expenses increased by $13.5 million or 51%, reaching $40.3 million for the three months ended September 30, 2024, compared to $26.8 million in the same period last year[142]. - The company reported total operating expenses of $40.3 million for the three months ended September 30, 2024, a 51% increase from $26.8 million in the same period of 2023[133]. - Total operating expenses for the nine months ended September 30, 2024, were $88,655,000, up from $78,112,000 in the same period in 2023, reflecting a 13% increase[111]. Net Loss - Net loss was $455.3 million for the three months ended September 30, 2024, compared to a net loss of $41.1 million for the same period in 2023[77]. - For the three months ended September 30, 2024, the company reported a net loss of $455.3 million, compared to a net loss of $41.1 million for the same period in 2023[100]. - The net loss for the nine months ended September 30, 2024, was $1,049,464, compared to a net loss of $50,794 for the same period in 2023[166]. - The company reported a net loss of $455.3 million for the three months ended September 30, 2024[160]. Segment Performance - The Digital Asset Self-Mining segment revenue decreased to $68.1 million for the three months ended September 30, 2024, down from $83.1 million in the same period of 2023, reflecting a decline of approximately 18%[105]. - The Digital Asset Hosted Mining segment generated revenue of $16.9 million for the three months ended September 30, 2024, down from $29.8 million in the same period of 2023, representing a decline of approximately 43%[105]. - The HPC Hosting segment reported revenue of $10.3 million for the three months ended September 30, 2024, marking its first revenue contribution as a new segment[105]. - The gross profit for the Digital Asset Self-Mining segment was a loss of $6.4 million for the three months ended September 30, 2024, compared to a gross profit of $10.5 million in the same period of 2023[105]. Cash and Assets - Cash and cash equivalents rose significantly to $253.0 million as of September 30, 2024, compared to $50.4 million as of December 31, 2023[138]. - Total current assets increased to $277.9 million as of September 30, 2024, from $97.0 million as of December 31, 2023[138]. - Total liabilities increased to $1.65 billion as of September 30, 2024, from $1.31 billion as of December 31, 2023[138]. - Unrestricted cash and cash equivalents increased to $253.0 million as of September 30, 2024, compared to $50.4 million as of December 31, 2023[205]. Tax and Valuation - The company's estimated annual effective income tax rate for fiscal 2024 is 0.0%, significantly lower than the U.S. federal statutory rate of 21.0% due to various adjustments[95]. - The effective income tax rate for the three months ended September 30, 2024, was (0.3)%, compared to (0.7)% for the same period in 2023[151]. - The company has a full valuation allowance on its net deferred tax asset, indicating it is not expected to realize such asset in the near future[95]. Research and Development - Research and development expenses increased by $588 thousand or 26%, to $2.8 million for the three months ended September 30, 2024[86]. - Research and development expenses increased to $6,814,000 for the nine months ended September 30, 2024, from $5,308,000 in the same period in 2023, marking a 28% increase[111]. - Research and development expenses rose by $1.5 million or 28% to $6.8 million for the nine months ended September 30, 2024, driven by increased payroll and benefits[243]. Stock and Equity - The Company has authorized the issuance of up to 10 billion shares of New Common Stock and 2 billion shares of Preferred Stock[120]. - The Company adopted an equity-based management incentive plan allowing for the grant of up to 40 million shares of Common Stock[123]. - The company had approximately $125.6 million of unrecognized stock-based compensation expense related to RSUs as of September 30, 2024[147]. - Stock-based compensation expense for the three months ended September 30, 2024, was $20.5 million, up from $14.9 million in the prior year[148]. Bankruptcy and Reorganization - The company emerged from bankruptcy on January 23, 2024, after confirming its Plan of Reorganization[189]. - The company emerged from bankruptcy on January 16, 2024, following the confirmation of its Plan of Reorganization[256]. - Reorganization items, net for the nine months ended September 30, 2024, included professional fees and other bankruptcy-related costs totaling $21.5 million, compared to $62.97 million for the same period in 2023[263]. Depreciation and Property - Depreciation expense for the three months ended September 30, 2024, was $28.5 million, compared to $24.0 million for the same period in 2023, representing an increase of approximately 18.8%[268]. - For the nine months ended September 30, 2024, depreciation expense was $86.6 million, up from $64.7 million in 2023, indicating a year-over-year increase of approximately 33.8%[268]. - The Company’s total property, plant, and equipment, net, after accounting for accumulated depreciation, was $396,574 thousand as of September 30, 2024, compared to $401,522 thousand at the end of 2023[268].

Third Quarter Fiscal 2024 Earnings Presentation Adam Sullivan, CEO Denise Sterling, CFO November 6, 2024 2 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's abil ...

Financial Performance - Net loss for the fiscal third quarter of 2024 was $455.3 million, compared to a net loss of $41.1 million for the same period in 2023, representing an increase of $414.1 million[11]. - Total revenue for the fiscal third quarter of 2024 was $95.4 million, a decrease of $17.6 million compared to $112.9 million in the third quarter of 2023[5]. - Adjusted EBITDA for the fiscal third quarter of 2024 was $10.1 million, down from $27.8 million in the same period last year, a decrease of $17.6 million[13]. - Operating loss for the fiscal third quarter of 2024 was $41.2 million, an increase of $29.2 million over the same period in 2023[5]. - Basic net loss per share was $1.17, compared to a loss of $0.11 per share in Q3 2023[33]. - The company reported a gross loss of $156 thousand for the quarter, compared to a gross profit of $15.419 million in Q3 2023[33]. - Consolidated gross loss was $156, compared to a gross profit of $15,419 in Q3 2023, indicating a significant decline in profitability[35]. - Adjusted EBITDA for Q3 2024 was $10,132, down from $27,758 in Q3 2023[38]. - The net loss for Q3 2024 was $455,259, compared to a net loss of $41,146 in the same quarter last year[38]. Revenue Breakdown - Digital asset self-mining revenue for the fiscal third quarter of 2024 was $68.1 million, while hosted mining revenue was $16.9 million, and HPC hosting revenue was $10.3 million[6]. - Digital asset self-mining revenue was $68.138 million, down from $83.056 million year-over-year[33]. - Digital asset hosted mining revenue from customers was $16.878 million, a decline from $27.020 million in the same quarter last year[33]. - Digital asset self-mining gross loss was $6,417, compared to a gross profit of $10,453 in the same quarter last year[35]. - Digital asset hosted mining revenue decreased by 43% to $16,878 from $29,848 year-over-year[35]. - HPC hosting revenue was $10,338, with a gross margin of 13%[35]. Operational Metrics - The company contracted approximately 500 megawatts of critical IT load, expected to generate total potential revenue of approximately $8.7 billion over 12-year contracts[3]. - The company operated a total hash rate of 23.4 EH/s, consisting of 20.4 EH/s from self-mining and 3.0 EH/s from hosting[5]. - The company improved its average actual self-mining fleet energy efficiency to 24.5 joules per terahash[5]. - Digital asset hosted mining gross margin improved to 29% from 17% year-over-year[35]. Assets and Liabilities - Total current assets increased to $277.856 million from $97.016 million at the end of Q4 2023[32]. - Total liabilities rose to $1.651 billion, compared to $1.309 billion at the end of Q4 2023[32]. - Cash and cash equivalents increased significantly to $253.019 million from $50.409 million at the end of Q4 2023[32]. - The company ended the quarter with cash and cash equivalents of $253.0 million as of September 30, 2024[5]. Adjustments and Other Notes - The company reported a significant adjustment of $408,520 in the fair value of warrants and contingent value rights for Q3 2024[38]. - Operating expenses for the fiscal third quarter of 2024 totaled $40.3 million, compared to $26.8 million for the same period in the prior year, an increase of $13.5 million[10]. - Operating expenses totaled $40.348 million, up from $26.805 million in the same quarter last year[33].

Core Insights - The Bitcoin mining sector is witnessing renewed investor interest due to Bitcoin's rally past $70,000 and a shift towards AI-focused business models among key players [1] - Companies like Core Scientific and Iris Energy are repositioning to capitalize on the high-growth AI market [1] Core Scientific (NASDAQ: CORZ) - Core Scientific has a market cap of $3.7 billion and an enterprise value of $4.22 billion, attracting significant institutional interest with over 55% of shares held by institutional investors [3] - The company has entered a transformative 12-year partnership with AI hyperscaler CoreWeave, expected to generate up to $3.5 billion in revenue [3][4] - CoreWeave's contracted high-performance computing capacity across five Core Scientific sites reaches 382 megawatts, enhancing its position in the AI-driven computing sector [4] - Core Scientific plans to issue $400 million in convertible senior notes maturing in 2029, with an option to increase by an additional $60 million, aimed at repaying $267 million in high-interest debt, reducing the interest rate from 12.5% to 3% [5][6] - The current stock price is $14, and the strategic shift towards AI applications presents a compelling growth opportunity for investors [6] Iris Energy Limited (NASDAQ: IREN) - Iris Energy has a market cap of $2 billion and an enterprise value of $1.59 billion, expanding into AI to enhance revenue streams and growth potential [7] - Institutional investors hold a 44% stake in Iris Energy, which generated $3.1 million in revenue from AI cloud services in fiscal year 2024 [8] - The company invested $43.9 million to acquire 1,080 NVIDIA H200 GPUs, increasing its total GPU count to 1,896, expected to yield $32 million in annualized hardware profit [8][9] - Iris Energy reported an EBITDA of $19.6 million, a significant improvement from a loss of $123.2 million the previous year, with Bitcoin mining revenue reaching a record $184.1 million [10] - The stock is currently trading at $10.55, and the company is exploring AI data center opportunities at its 1.4 GW West Texas site [9][10] Market Outlook - With Bitcoin maintaining a price above $70,000 and growing demand for AI, Core Scientific and Iris Energy are well-positioned to benefit from the convergence of AI and Bitcoin mining [11]

Core Insights - U.S. stocks closed mixed, but notable insider trades indicate confidence in company prospects [1] - Insider purchases can signal opportunities to go long on stocks, although they should not be the sole indicator for investment decisions [1] Company Summaries Healthcare Realty Trust - Director Thomas N Bohjalian acquired 14,000 shares at an average price of $17.88, costing approximately $250,320 [3] - The company reported downbeat quarterly sales on August 2 [3] - Healthcare Realty Trust focuses on owning, leasing, and managing outpatient facilities and other healthcare properties [3] Westrock Coffee - Director Joe T Ford acquired 5,000 shares at an average price of $7.64, costing around $38,200 [4] - The company posted downbeat quarterly earnings on August 8 [4] - Westrock Coffee provides integrated coffee, tea, flavors, extracts, and ingredients solutions, serving various industries globally [4] Core Scientific - Director Jarrod M Patten bought 5,021 shares at an average price of $9.68, costing about $1.98 million; the President and CEO also purchased 48,596 shares [5] - Needham initiated coverage on the stock with a Buy rating and a $16 price target on September 4 [5] - Core Scientific is engaged in Blockchain and AI Infrastructure, Digital Asset Self-Mining, and related services [5]

Core Viewpoint - Core Scientific, Inc. (CORZ) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Impact - The Zacks rating system is based on the changing earnings picture of a company, specifically tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. - The recent upgrade for Core Scientific indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [6]. Earnings Estimate Revisions - Core Scientific is projected to earn -$3.87 per share for the fiscal year ending December 2024, reflecting a year-over-year change of -2176.5% [9]. - Over the past three months, the Zacks Consensus Estimate for Core Scientific has increased by 105.9%, indicating a positive trend in earnings estimates [9]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 places Core Scientific in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11].

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the s ...

0000000000 objectifphoto/iStock via Getty Images Bitcoin (BTC-USD) has been highly volatile after the halving event on April 19 as per the chart below, flirting with the $73 level then dipping to $50K, and stabilizing around $60K, for now. In its wake, Core Scientific (NASDAQ:CORZ) also suffered, but still delivered a net upside of above 200% and was trading around $9,75 at the time of writing VAL Core Scientific Inc (CORZ) Price Bitcoin Price (LBTCUSD) 9.75 60912.59 12.00 70000.00 10.50 67500.00 9.75 65000 ...

| --- | --- | --- | --- | |-------------------------------------|-------|-------|-------| | | | | | | | | | | | Second Quarter Fiscal 2024 Earnings | | | | | Presentation | | | | | Adam Sullivan, CEO | | | | | Denise Sterling, CFO | | | | | August 7, 2024 | | | | 2 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding proj ...