Core Scientific has reported its financial results for the first quarter of 2024, revealing a net loss of $347.2 million for the period. Despite the substantial loss, the company’s revenue climbed significantly, reaching $115.2 million—a notable increase compared to the same period last year.
Shift from bitcoin mining to artificial intelligence
Once a leader in the Bitcoin mining sector, Core Scientific is now seeing a decline in revenues from mining operations. In the first three months of the year, the company sold a total of 2,385 Bitcoin, generating $208.3 million in revenue. However, it also recorded a $266.5 million decrease in the value of its mining-related assets.
Revenue from mining fell sharply to $30.1 million, marking a 55% drop compared to the same quarter last year. Core Scientific attributed this decline to a 45% fall in produced Bitcoin and an 18% decrease in the average price of Bitcoin during the period.
According to Core Scientific, “Proceeds from our Bitcoin sales were used to cover capital expenses and other cash requirements. This approach mirrors a broader industry trend, where many mining companies are leveraging their crypto assets to invest in AI-focused data centers.”
Colocation revenue leaps forward
The company recorded a dramatic jump in its colocation (hosting) revenues. Revenue in this segment soared to $77.5 million in the first quarter, up from just $8.6 million last year, making colocation the company’s largest business line.
By the end of March, Core Scientific was operating 10 data centers across seven U.S. states, boasting a total gross power capacity of around 1.9 gigawatts and a rentable customer power of 1.3 gigawatts.
Strategic growth and funding moves with CoreWeave
In its first major agreement in the high-density hosting segment, Core Scientific expanded its contract with CoreWeave to cover 590 megawatts as of March. With an expansion planned for February 2025, CoreWeave’s overall infrastructure agreement within Core Scientific is set to reach 590 megawatts and is projected to generate $10.2 billion in revenue over 12 years.
To accelerate investments in AI-centric data centers, the company completed a secured bond sale amounting to $3.3 billion with a 7.75% interest rate. The funds raised are earmarked for data center projects and the repayment of $1 billion in debt.
Furthermore, during the first quarter, a single hosting client accounted for 67% of overall revenue—a significant rise from 11% a year earlier—highlighting a continued reliance on large, concentrated customers.
After emerging from bankruptcy protection at the start of 2024, the company has undergone restructuring. Its strategic pivot towards artificial intelligence has drawn keen investor attention, especially following CoreWeave’s recent, unsuccessful $9 billion all-stock acquisition bid. Core Scientific is now seen as a pioneer among crypto miners aiming to turn their energy access into long-term AI revenue streams.
As of the end of March, Core Scientific disclosed total liquidity of $1.04 billion, consisting of $1.01 billion in cash and $37.3 million in Bitcoin holdings.
