Core Scientific posts $861.7 million loss after bitcoin revaluation

American blockchain-hosting provider Core Scientific, reporting April–June 2022 results received net loss of $861.7 million on revenue of $164 million.

Adjusted earnings per share were 18 cents.

“Thanks to increased liquidity from bitcoin sales and equity, the prerequisites for improving hosting profitability and for managing our obligations, we are well positioned to navigate current market conditions and to become a larger, stronger and more profitable company”, — said Core Scientific CEO Mike Levitt.

In June, the mining firm sold 7,202 BTC — 89.4% of the bitcoins it had on its balance sheet as of the end of May.

The proceeds were used to fund equipment purchases, finance capital expenditures for additional data-center capacity, and planned debt repayments.

In the second quarter, Core Scientific mined 3,365 BTC — about 5% more than in January–March. This was not hindered by the heat in July, which led to a reduction in electricity consumption of 8,157 MWh at the company’s facility in Texas. About 15% of total capacity is located in that state.

The growth in output was linked to the hashrate rising from 8.3 EH/s at the end of March to 10.3 EH/s. The company maintained its 2022 target at 30–32 EH/s.

In January 2022 Core Scientific went public via a reverse merger with a SPAC. Its shares trade on the Nasdaq under the ticker CORZ.

In April, the company began reporting the daily volume of mined cryptocurrency.

Earlier, Core Scientific signed an agreement with B. Riley Principal Capital II to sell it $100 million worth of shares over two years.

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