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Despite severe headwinds in Q2 2022 such as the Bitcoin price crash, heat wave, and much more, the company reported better than expected $164 million in revenue.
On Thursday, August 11, leading Bitcoin miner Core Scientific reported its second quarter (Q2) results for the year 2022. The BTC miners reported better-than-expected revenue of $164 million against market expectations of $162 million.
The adjusted earnings per share stood at 18 cents against the expected 13 cents. During Q2 2022, Core Scientific mined a total of 3,365 BTC, up 5% from the previous quarter. This happened despite the BTC miner curtailing power for 8157-megawatt hours during July. Nearly 15% of the company’s mining activities have been located in Texas which has been facing a severe heat wave this summer.
However, the increase in BTC mined last quarter came amid the expansion of its self-mining hashrate from 8.3 EH/s by Q1-end to 10.3 exahash per second (EH/s) by Q2-end.
As per Core Scientific CEO Mike Levitt, the company didn’t incur any revenue by curtailing power. This was unlike Riot Blockchain which secured $9.5 million in power credits. Speaking further, Levitt said:
“With enhanced liquidity from bitcoin sales and our committed equity facility, line of sight to improved hosting margins and manageable principal and interest payments on our liabilities, we remain well positioned to navigate current market conditions and emerge from these markets a larger, stronger and more profitable company”.
Core Scientific Reveals Net Q2 Loss and July Developments
For the second quarter, Core Scientific posted a net loss of $862 million, of which $840 million came from goodwill impairment charges and $150 million from impairment of digital assets. Besides, the company also cut down its staff by 10% last quarter to reduce operational costs.
However, none of the laid employees were from the data center activities, said CEO Mike Levitt. On the other hand, the company’s mining operations have run into issues in Georgia due to “variability of nat gas pricing”. Levitt said that moving to this location wasn’t perhaps the “best decision”.
For Core Scientific, revenue from its hosting services for Q2 2022 stood at $38.9 million. The CEO stressed that the company’s focus is “making sure hosting business is a profitable business”.
During the month of June, CoreScientific had sold more than 7,200 Bitcoins. This money has gone towards equipment payments, scheduled repayment of the debt, and capital investments in additional data center capacity. Last month, Core Scientific also increased its hashrate with new equipment purchases. In the latest guidance, the company said:
“We deployed 14,000 new ASIC servers in July. These deployments increased our total hashrate to approximately 19.3 EH/s, representing the largest operating capacity of any listed company in North America. In addition, we signed new colocation agreements with customers that should, once the servers are deployed later this year, generate approximately $50 million in annual revenue. During the month of July, we continued to enhance liquidity, strengthen our balance sheet, streamline our organization and make further progress toward achieving our 2022 operating objectives.”
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