Core Scientific, one of the largest Bitcoin miners in the world, declared this Wednesday (7) that it had a loss of US$ 805 million.
Core Scientific
Core Scientific, one of the world's largest Bitcoin miners, said on Wednesday (7) that it had a loss of US$805 million (R$4.5 billion) in the last quarter. The amount is not linked to the company's performance in the period, but to old problems.
This is because the mining company declared bankruptcy in the US in 2022. However, it has been trying to recover since the following year after changes in its management.
Given this, US$796 million of this US$805 million loss is linked to the appreciation of its shares, which jumped from US$3 to US$10 since January 2024. After all, the company had issued “warrants”, giving the right to purchase shares at a fixed price to its holders.
The remaining amount will be linked to net interest expenses and other expenses of the company, which resumed operations at the beginning of this year.
Core Scientific reports $805 million loss, but continues to expand
Regarding Core Scientific's own activity, the company claims to have mined 1,680 bitcoins in the second quarter of 2024. Although the amount has fluctuated considerably during the period, it is currently valued at R$553 million (US$97 million) at the current exchange rate.
According to the same report, the company signed a 382-megawatt contract to expand its operations, aiming to earn $6.7 billion from this infrastructure over the next 12 years.
Therefore, despite the loss of US$805 million due to its long-standing financial problems, the mining company continues to operate and expand.
Core Scientific CEO Adam Sullivan commented that they continue to demonstrate progress in their strategy. In addition to Bitcoin mining, the mining company is exploring other areas that rely on high-performance computing.
“Key achievements during and after the quarter include successfully navigating the April halving and achieving a favorable cash cost of approximately $29,900 per bitcoin mined,” Sullivan said, noting that they are running a healthy profit margin on operations while Bitcoin is trading in the $58,000 range.
“We are building significant momentum across each of our businesses as we enter the second half of the year and believe we are well positioned to continue generating value for our shareholders.”
Core Scientific shares have rallied sharply on the Nasdaq since returning to trading. Source: Yahoo Finance.
Finally, in addition to the bitcoins mined themselves, the company also rents part of its equipment to third parties, further increasing its revenue.
Despite its past troubles, Core Scientific remains one of the largest public companies in the mining industry.
Core Scientific reappears as 5th largest Bitcoin mining company by market value. Source: CompaniesMarketCap.
