Miner Core Scientific reports an $805 million loss for Q2

What’s new? US-based miner Core Scientific, with a capitalization of $1,74 billion, has reported a net loss of $804,9 million in Q2. The figure was up 87 times compared to the same reporting period last year (-$9,3 million). The report attributes this to a $796 million adjustment to warrants and CRVs. The company issued these securities during the bankruptcy process, which was successfully restructured and re-listed on Nasdaq earlier this year.

Press release

What else is known? The company mined 1680 bitcoins worth $92 million in Q2. CFO Denise Sterling was positive about the results of the reporting period, noting that another halving occurred during this time, which reduced the block mining reward to 3M125 BTC, and the network hashrate increased by 68%.

Operating expenses increased by $4,3 million while operating income fell from $9,5 million to $6,6 million year-over-year. Still, the company’s revenue increased from $126,9 million to $141,1 million in the second quarter of last year.

The mandatory conversion of warrants and CRVs resulted in $260 million of debt being written off the balance sheet. CEO Adam Sullivan said the company’s overall debt has been reduced by about 60% since the beginning of the year.

Core Scientific is changing its strategy in the face of declining bitcoin mining after halving. It is aggressively growing its infrastructure by expanding its data center in Denton, Texas, to about 830 MW and buying and deploying mining chips from Twitter founder Jack Dorsey’s Block company.

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The company is also hedging the growing risks associated with bitcoin mining by expanding its high-performance computing business. Earlier this week, it announced the expansion of its deal to supply computing power to AI startup CoreWeave.

“We’re on the leading edge of both bitcoin mining and HPC — two of the highest growth industries,” Sullivan concluded.

Core Scientific is the fifth-largest miner by market capitalization, behind Marathon Digital, Phoenix Group, CleanSpark, and Riot Blockchain. The company’s shares under the ticker CORZ are trading at $9,82, having added 1,13% overnight. The growth since the beginning of the year amounted to 77%.

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Core Scientific’s competitors are also trying to diversify revenues and increase capacity. For example, previously the largest miner Marathon started mining KAS tokens in addition to BTC and supplying excess heat from farms to heat homes. Despite these efforts, the company recorded a loss in Q2 for the first time since 2022.

In turn, Australia’s largest miner Iris Energy raised $413 million to expand its mining capacity. This fundraising was the largest venture capital funding round in July, with miner Riot coming in second place, having bought Block Mining for $92,5 million. In addition, Riot increased its hashrate by 50% during July and moved into second place in this metric, surpassing CleanSpark and Core Scientific.