Core Scientific Cuts Hashrate Outlook, Q1 Revenue Misses Estimates

Despite the shortfalls, the bitcoin miner's shares were up in after-hours trading.

May 12, 2022 at 8:30 p.m. UTC
Updated May 12, 2022 at 9:06 p.m. UTC

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Core Scientific (CORZ), the world's largest publicly traded bitcoin miner by hashrate, reported first-quarter revenue of $192.5 million, falling short of analysts' average estimate of $200.3 million, according to FactSet.

  • Revenue was up 255% from the same quarter last year, mainly because of increases in digital asset mining and hosting revenue. That was partly offset by a decrease in equipment sales, the company said in a statement.
  • Core Scientific cut its 2022 hashrate outlook to 30-32 exahashes per second from its previous outlook of 40-42 EH/s, and now sees total power of about 1 gigawatt, compared with its previous forecast of between 1.2 and 1.3 gigawatts.
  • “We have worked to de-risk our 2022 growth to between 30 and 32 exahash, fully supported by our existing capital structure,” CEO Mike Levitt said in the statement. “We preserve the flexibility to expand beyond our plan, should capital market conditions improve.”
  • The miner also reported adjusted earnings before interest, taxes, depreciation and amortization of $93 million, which was up 644% from the first quarter of last year, but below analysts' average estimate of $111 million.
  • The miner said its mining segment had a gross margin of 48% in the first quarter, compared with 83% in the prior-year period. The decrease was driven by higher miner depreciation, higher power costs and lower average price per bitcoin mined.
  • Shares of the miner were up 1.3% in after-hours trading on Thursday, while bitcoin traded down roughly 2% over the last 24 hours to around $28,000. The stock has dropped 65% this year, roughly on pace with peers Marathon Digital (MARA) and Riot Blockchain (RIOT).

Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

Trending

1
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
3
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
4
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown