Deniz 
Comparatively to a net loss of $9.3 million in the previous year, U.S. publicly traded bitcoin miner Core Scientific recorded a net loss of $804.9 million in the second quarter of 2024.
Causes of the Losses
Its most recent financial report, which was posted on Wednesday, claims that these shockingly large losses were mostly caused by the required $796 million “non-cash mark-to-market adjustments” to its warrants and contingent value rights resulting from increasing stock prices. During its Chapter 11 bankruptcy procedure in 2024, Core Scientific sent debt holders these over-the-counter traded CVRs.
At an average cost of $29,900 per coin, it mined 1,680 bitcoin (~$92 million—a notable drop from past quarters due to the halving and greater competitiveness).
Chief Financial Officer Denise Sterling remarked Wednesday on the results call, “We are pleased with the company’s performance, especially in light of the halving and 68% increase in the network hashrate.”
Operating income dropped to $6.6 million from $9.5 million compared to the second quarter of 2023; operating expenses rose by $4.3 million.
Still, the company’s income rose to $141.1 million from $126.9 million in Q2 of 2023. The balance sheet showed debt of $260 million after the mandated conversion of its warrants and CRVs. According to CEO Adam Sullivan, the company’s overall debt has fallen almost 60% since the year’s beginning.
Following the quarterly announcement, Core Scientific’s shares (ticker CORZ) increased 1.13% to $9.82.
Future Plans and Strategy
The post-halving world is causing Core Scientific to change its approach. The company is rapidly developing its infrastructure, including a Denton, Texas, data center with about 830 megawatts of capacity. It has committed itself to buy and use Jack Dorsey’s Block (previously Square) next-generation mining chips.
Expanding its high-performance computer division helps the corporation also hedge the rising risks associated with bitcoin mining. On Tuesday, it said it had extended its agreement to provide artificial intelligence company CoreWeave with processing capacity.
On the results call, Sullivan remarked, “We’re building a portfolio that is attractive to these end clients,” pointing that it aims to diversify its customer base. “We have a great story right now. We’re on the leading edge of both bitcoin mining and HPC — two of the highest growth industries.”
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