| --- | --- | --- | --- | |-------------------------------------|-------|-------|-------| | | | | | | | | | | | 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 ...

Core Scientific, Inc. (NASDAQ:CORZ) Q2 2024 Earnings Conference Call August 7, 2024 4:30 PM ET Company Participants Steve Gitlin – Senior Vice President, Investor Relations Adam Sullivan – Chief Executive Officer Denise Sterling – Chief Financial Officer Conference Call Participants Greg Lewis – BTIG Lucas Pipes – B. Riley Securities Joe Flynn – Compass Point Research Brett Knoblauch – Cantor Fitzgerald Joseph Vafi – Canaccord Genuity Darren Aftahi – Roth Capital Partners Rosemarie Sison – Odeon Capital Kev ...

Financial Performance - Total revenue for the six months ended June 30, 2024 was $320.4 million, compared to $247.6 million for the same period in 2023[179] - Operating income for the six months ended June 30, 2024 was $61.8 million, compared to $17.1 million for the same period in 2023[179] - Net loss for the six months ended June 30, 2024 was $594.2 million, compared to $9.6 million for the same period in 2023[179] - Adjusted EBITDA for the six months ended June 30, 2024 was $134.0 million, compared to $85.3 million for the same period in 2023[179] - Total revenue increased by $14.2 million or 11%, to $141.1 million for the three months ended June 30, 2024, from $126.9 million for the three months ended June 30, 2023[245] - Net loss increased by $795.6 million to $804.9 million for the three months ended June 30, 2024, from $9.3 million for the three months ended June 30, 2023[243] - Net loss widened to $594.2 million in the first half of 2024, compared to a net loss of $9.6 million in the same period of 2023, driven by non-operating expenses[266] - Total revenue increased by $72.8 million or 29%, to $320.4 million for the six months ended June 30, 2024, from $247.6 million for the six months ended June 30, 2023[268] - Operating income increased significantly to $61.8 million for the six months ended June 30, 2024, compared to $17.1 million in the same period in 2023, driven by higher gross profit and reduced operating expenses[289] Mining Operations and Hash Rate - The company secured approximately 1,200 MW of contracted power capacity as of June 30, 2024[178] - The company improved its average self-mining fleet energy efficiency to 24.7 joules per terahash for the three months ended June 30, 2024, compared to 26.9 joules per terahash for the three months ended March 31, 2024[178] - The company's total mining equipment hash rate was 24.6 EH/s as of June 30, 2024, with 19.4 EH/s from self-miners and 5.2 EH/s from hosted miners[191] - The company's digital asset self-mining revenue, net of receivables, was $261.6 million for the six months ended June 30, 2024, compared to $194.9 million for the same period in 2023[193] - Self-mining hash rate increased to 19.4 EH/s as of June 30, 2024, up 28% from 15.1 EH/s in 2023[220] - Combined self-mining and customer hosting hash rate increased 10% to 24.6 EH/s as of June 30, 2024, from 22.3 EH/s in 2023[220] - The company's self-mining hash rate increased 28% to 19.4 EH/s for the six months ended June 30, 2024, driven by the deployment of approximately 19,000 additional miners[287] Bitcoin and Market Volatility - The company's Bitcoin protocol halving in April 2024 reduced bitcoin rewards from 6.25 to 3.125 per solved block, potentially impacting revenue and gross profit by 50%[181] - Bitcoin's network hash rate has increased due to rising competition, requiring the company to upgrade mining equipment to remain profitable[196][200][201] - The company's financial performance is heavily dependent on the volatile market price of bitcoin, which can be influenced by factors like regulation and media reporting[197][198] - Bitcoin's halving events reduce mining rewards, with the next halving expected in 2028, potentially impacting revenue unless offset by price increases or reduced difficulty[203][204] - Bitcoin prices for the three months ended June 30, 2024, ranged from $56,643 to $72,674, with an average price of $65,677[317] - A hypothetical 10% increase or decrease in the price of bitcoin during the three months ended June 30, 2024, would have increased or decreased net loss by approximately $11.1 million[317] - The company did not hold any bitcoin as of June 30, 2024[316] Costs and Expenses - Electricity costs are a major operating expense, with seasonal demand and geopolitical factors impacting prices and availability[205] - Total cost to self-mine one bitcoin increased to $29,879 in Q2 2024, up from $13,471 in Q2 2023[218] - Direct power cost per bitcoin self-mined rose to $24,533 in Q2 2024, compared to $11,253 in Q2 2023[218] - Total cash-based hash cost decreased to $0.030 per terahash in Q2 2024, down from $0.036 in Q2 2023[218] - Cost of revenue increased by $12.3 million or 14%, to $102.3 million for the three months ended June 30, 2024, from $90.0 million for the three months ended June 30, 2023[248] - Cost of revenue increased by $25.1 million or 14%, to $203.9 million for the six months ended June 30, 2024, from $178.8 million for the six months ended June 30, 2023[271] Revenue Segments - Digital asset self-mining revenue increased by $13.7 million or 14%, to $110.7 million for the three months ended June 30, 2024, from $97.1 million for the three months ended June 30, 2023[246] - Total digital asset hosted mining revenue from customers decreased by $1.5 million or 6%, to $24.8 million for the three months ended June 30, 2024, from $26.3 million for the three months ended June 30, 2023[247] - Total HPC hosting revenue was $5.5 million for the three months ended June 30, 2024, compared to nil for the same period in the prior year[247] - Digital asset self-mining revenue increased by $65.6 million or 34%, to $260.7 million for the six months ended June 30, 2024, from $195.1 million for the six months ended June 30, 2023[269] - Total digital asset hosted mining revenue from customers increased by $8.9 million or 20%, to $54.2 million for the six months ended June 30, 2024, from $45.2 million for the six months ended June 30, 2023[270] - Total HPC hosting revenue was $5.5 million for the six months ended June 30, 2024, compared to nil for the same period in the prior year[270] - Digital Asset Self-Mining segment revenue increased by 14% to $110.7 million in Q2 2024, driven by a 134% increase in bitcoin price and a 28% increase in self-mining hash rate to 19.4 EH/s[262] - Digital Asset Hosted Mining segment revenue decreased by 17% to $24.8 million in Q2 2024, but gross margin improved to 30% from 23% due to more profitable hosting arrangements[263] - HPC Hosting segment generated $5.5 million in revenue and $0.6 million in gross profit in Q2 2024, as it began operations during the quarter[264] - Digital Asset Self-Mining segment revenue increased by 34% to $260.7 million, with gross profit rising 78% to $99.1 million and gross margin improving from 28% to 38%[285] - Digital Asset Hosted Mining segment revenue grew 3% to $54.2 million, with gross profit increasing 27% to $16.7 million and gross margin improving from 25% to 31%[285] - HPC Hosting segment generated $5.5 million in revenue and $0.6 million in gross profit, with an 11% gross margin, as the segment began operations in Q2 2024[285] Gross Profit and Margins - Gross profit increased by $1.9 million or 5%, to $38.8 million for the three months ended June 30, 2024, from $37.0 million for the three months ended June 30, 2023[248] - Gross profit increased by $47.7 million or 69%, to $116.5 million for the six months ended June 30, 2024, from $68.7 million for the six months ended June 30, 2023[271] - Digital Asset Self-Mining segment gross profit increased by 2% to $30.7 million in Q2 2024, despite a 52% decrease in bitcoin mined due to the April 2024 halving[262] - Digital Asset Hosted Mining segment gross profit increased by 11% to $7.4 million in Q2 2024, reflecting improved profitability[263] - Consolidated total revenue increased 29% to $320.4 million, with gross profit rising 69% to $116.5 million and gross margin improving from 28% to 36%[285] Operating Expenses - Research and development expenses increased by $0.5 million or 33%, to $2.2 million for the three months ended June 30, 2024, from $1.6 million for the three months ended June 30, 2023[243] - Sales and marketing expenses increased by $1.9 million or 174%, to $3.0 million for the three months ended June 30, 2024, from $1.1 million for the three months ended June 30, 2023[243] - General and administrative expenses increased by $1.8 million or 8%, to $26.2 million for the three months ended June 30, 2024, from $24.4 million for the three months ended June 30, 2023[243] - Total operating expenses increased by $4.3 million (16%) to $31.4 million for the three months ended June 30, 2024[254] - Research and development expenses increased by $0.5 million (33%) to $2.2 million for the three months ended June 30, 2024[255] - Sales and marketing expenses increased by $1.9 million to $3.0 million for the three months ended June 30, 2024[255] - General and administrative expenses increased by $1.8 million to $26.2 million for the three months ended June 30, 2024[256] - Research and development expenses increased $0.9 million or 30%, to $4.0 million for the six months ended June 30, 2024, from $3.1 million for the six months ended June 30, 2023[279] - Sales and marketing expenses increased $1.9 million or 89%, to $3.9 million for the six months ended June 30, 2024, from $2.1 million for the six months ended June 30, 2023[279] - General and administrative expenses decreased $5.8 million or 13%, to $40.4 million for the six months ended June 30, 2024, from $46.2 million for the six months ended June 30, 2023[280] - Total operating expenses decreased $3.0 million or 6%, to $48.3 million for the six months ended June 30, 2024, from $51.3 million for the six months ended June 30, 2023[278] Non-Operating Expenses and Taxes - Total non-operating expenses, net increased by $792.7 million to $811.3 million for the three months ended June 30, 2024, driven by a $796.0 million change in fair value of warrant and contingent value rights[258] - Income tax expense was $0.1 million for both the three months ended June 30, 2024, and June 30, 2023[259] - Total non-operating expenses, net increased by $629.2 million to $655.7 million for the six months ended June 30, 2024, driven by a $735.9 million change in fair value of warrant and contingent value rights due to a stock price increase from $3.44 to $9.30 per share[282] - Income tax expense for the six months ended June 30, 2024, was $0.4 million, with an effective tax rate lower than the federal statutory rate of 21% due to a valuation allowance on deferred tax assets and non-deductible expenses[283] Cash Flow and Liquidity - Cash and cash equivalents increased by 91% to $96.1 million as of June 30, 2024, compared to $50.4 million as of December 31, 2023[295] - Restricted cash decreased by 95% to $1.0 million as of June 30, 2024, compared to $19.3 million as of December 31, 2023[295] - Total cash, cash equivalents, and restricted cash increased by 39% to $97.1 million as of June 30, 2024, compared to $69.7 million as of December 31, 2023[295] - Net cash provided by operating activities decreased to $23.4 million for the six months ended June 30, 2024, compared to $38.0 million for the same period in 2023[300] - Net cash used in investing activities increased to $35.2 million for the six months ended June 30, 2024, compared to $2.5 million for the same period in 2023[301] - Net cash provided by financing activities was $39.2 million for the six months ended June 30, 2024, compared to a net cash used of $11.0 million for the same period in 2023[302] - The company entered into a new $80.0 million credit and guaranty agreement (Exit Credit Agreement) upon emerging from bankruptcy, with $20.0 million of undrawn borrowing capacity remaining[291] Competition and Differentiation - The company faces significant competition in acquiring new miners, raising capital, and securing low-cost electricity and high-power sites[207][209] - The company differentiates itself through proprietary data center designs, thermodynamic solutions, and expertise in mining equipment optimization[212][213] - The company plans to expand its miner fleet and invest in R&D to maintain competitiveness and develop new technologies[209][213] Regulatory Environment - Regulatory developments, including U.S. and international efforts, could impact the company's operations and the broader digital asset industry[214][215][216] - The company will cease to be an emerging growth company as of December 31, 2024, due to its market value exceeding $700 million[313] Other Financial Metrics - The company uses non-GAAP financial measures like Adjusted EBITDA and key operating metrics such as self-mining hash rate to evaluate performance[217] - Adjusted EBITDA for Q2 2024 was $46.0 million, compared to $45.0 million in Q2 2023[218] - The top three hosting customers accounted for 87% of the Digital Asset Hosting segment's total revenue for the six months ended June 30, 2024, up from 72% in the same period in 2023[286]

Financial Performance - Net loss of $804.9 million, primarily due to a $796.0 million non-cash mark-to-market adjustment for warrants and contingent value rights[1] - Generated operating income of $6.6 million, a decrease of $2.9 million compared to Q2 2023[1] - Adjusted EBITDA of $46.0 million, an increase of $1.0 million compared to Q2 2023[1] - Total revenue of $141.1 million, consisting of $110.7 million from digital asset self-mining, $24.8 million from hosted mining, and $5.5 million from HPC hosting[4] - Total revenue for Q2 2024 increased to $141.1 million, up from $126.9 million in Q2 2023[23] - Gross profit for Q2 2024 was $38.8 million, slightly higher than $37.0 million in Q2 2023[23] - Net loss for Q2 2024 was $804.9 million, significantly higher than $9.3 million in Q2 2023[23] - Adjusted EBITDA for Q2 2024 was $46.04 million, compared to $44.99 million for the same period in 2023[29] - Net loss for Q2 2024 was $804.90 million, compared to a net loss of $9.26 million for the same period in 2023[29] Revenue Breakdown - Digital asset self-mining revenue in excess of mining cost was $30.7 million (28% gross margin), an increase of $0.5 million compared to Q2 2023[5] - Digital asset hosted mining revenue in excess of hosting cost was $7.4 million (30% gross margin), an increase of $0.7 million compared to Q2 2023[6] - HPC hosting revenue in excess of hosting cost was $0.6 million (11% gross margin), with operations commencing in Q2 2024[6] - Digital asset self-mining revenue grew to $110.7 million in Q2 2024, compared to $97.1 million in Q2 2023[23] - Digital Asset Self-Mining revenue for Q2 2024 was $97.08 million, compared to $260.70 million for the six months ended June 30, 2024, with a gross margin of 31% for Q2 2024 and 38% for the six-month period[25] - Digital Asset Hosted Mining revenue for Q2 2024 was $29.83 million, with a gross margin of 23%, compared to $54.17 million and a 31% gross margin for the six-month period[25] - Consolidated total revenue for Q2 2024 was $126.91 million, with a gross margin of 29%, compared to $320.39 million and a 36% gross margin for the six-month period[25] - HPC hosting revenue for the six months ended June 30, 2024, was $5.52 million, with a gross margin of 11%[25] Operational Highlights - Contracted 382 megawatts of infrastructure for HPC hosting, representing potential revenue of approximately $6.7 billion over 12 years[1] - Earned 1,680 self-mined bitcoin in Q2 2024[1] Cash and Assets - Cash and cash equivalents of $96.1 million as of June 30, 2024[3] - Cash and cash equivalents increased to $96.1 million as of June 30, 2024, up from $50.4 million at the end of 2023[22] - Total assets grew to $761.5 million as of June 30, 2024, compared to $712.2 million at the end of 2023[22] - Total liabilities increased to $1.85 billion as of June 30, 2024, up from $1.31 billion at the end of 2023[22] Expenses - Research and development expenses for Q2 2024 were $2.2 million, up from $1.6 million in Q2 2023[23] - Sales and marketing expenses for Q2 2024 were $3.0 million, compared to $1.1 million in Q2 2023[23] - General and administrative expenses for Q2 2024 were $26.2 million, up from $24.4 million in Q2 2023[23] - Depreciation and amortization for Q2 2024 was $29.48 million, compared to $20.47 million for the same period in 2023[29] - Stock-based compensation expense for Q2 2024 was $8.49 million, compared to $14.28 million for the same period in 2023[29] - Reorganization items, net for Q2 2024 were $0, compared to $18.46 million for the same period in 2023[29] - Change in fair value of warrant and contingent value rights for Q2 2024 was $796.04 million, compared to $0 for the same period in 2023[29]

Shares of Core Scientific, Inc. (CORZ) have gained 1.6% over the past four weeks to close the last trading session at $9.71, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $14.71 indicates a potential upside of 51.5%. The average comprises seven short-term price targets ranging from a low of $8.50 to a high of $20, with a standard deviation of $3.53. While the lowest estimate i ...

In January, U.S. bitcoin miner Core Scientific was bankrupt and battling angry lenders. Since its return to the stock market that month, the share price is up 140% as the company aggressively goes after building a business in artificial intelligence. On Tuesday, the mining firm announced an expanded deal worth $6.7 billion with CoreWeave, an Nvidiabacked startup that's one of the main providers of the chipmaker's technology for running AI models. Core Scientific will deliver an additional 112 megawatts of c ...

The first-of-its-kind program allows miners on Foundry USA Pool™ to directly contribute to bitcoin's opensource development through select nonprofits ROCHESTER, N.Y., July 23, 2024 /PRNewswire/ -- Foundry Digital LLC ("Foundry" or the "Company"), a decentralized infrastructure company providing mining, staking, and decentralized AI software and services, today unveiled Foundry Donate, an innovative program that connects miners in Foundry USA Pool™ with nonprofit organizations that fund core developers of th ...

Loading... In June 2024, Core Scientific announced a deal with CoreWeave (private), following which shares went up meaningfully. In what has now been extended, CoreWeave will lease 270 MW from Core Scientific for 12 years, and pay the company a total of $4.725 billion over that duration, amounting to ~$1.45 million per MW. What is most differentiated about this deal that other miners will not be able to replicate is the fact that CoreWeave will fund the entire capex buildout itself (~$1.3 billion). Core Sci ...

The mean estimate comprises five short-term price targets with a standard deviation of $3.22. While the lowest estimate of $8.50 indicates a 22.8% decline from the current price level, the most optimistic analyst expects the stock to surge 54.4% to reach $17. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts. Price, Consensus and EPS Surprise While Wall Street analysts ...

But the Bitcoin halving, which took place on April 19, changes everything. We've now entered a new halving cycle, and changes brought about by the Bitcoin algorithm could have profound implications for mining stocks over the next 12 months. Let's take a closer look. That's why the period immediately following the halving is filled with so much uncertainty. Bitcoin miners need to make up for their dramatic revenue shortfall, otherwise they could go out of business. Even before the halving took place in April ...