Saturday, June 10, 2023

Core Scientific Hits Digital Gold


Core Scientific, a Bitcoin mining company based in the United States, has released its fiscal year 2021 results, which are up from the previous year. Its revenue grew by 803 percent to $544.5 million, with a 2,443 percent increase in gross profit to $238.9 million.

The corporation attributed the increased performance to increases in hash rate, mining equipment sales, hosting revenue, and digital asset mining income. The soaring price of Bitcoin (BTC) undoubtedly helped.

A Drastic Increase

The figures were released on March 29 and reflect a total net income of $47.3 million for the previous fiscal year. The amount is a significant rise above the net loss of $12.2 million in 2020.

Hosting income climbed 91 percent from 2020 to $79.3 million in 2021, according to Core Scientific’s revenue streams. Equipment sales surged by 1,871% to $248.2 million, while digital asset mining revenue jumped by 3,440% to $216.9 million.

Mike Levitt, CEO of Core Scientific, stated that the company’s BTC mining hash rate has increased. It increased from under 3.0 EH/s at the end of 2020 to 13.5 EH/s at the end of 2021. More than 5,700 BTC were mined as a result of this.

Expansion Plans

In the future, Levitt stated that the company is on track to reach its growth goals in 2022. Their overall hashrate increased to 15.9 EH/s in the first two months of 2022, and they self-mined almost 2,000 Bitcoins. They are successfully executing their plans across the board. They’re also in a good position to keep growing their capacity and increasing shareholder value.

While the firm’s revenue increased significantly across the board, the pattern continued on the spending side of the equation. Revenue expense climbed by 500 percent to $305.6 million. The $41.3 million in “non-operating expenses connected to our convertible notes” offsets their net profits. Finally, financing arrangements resulted in a $14.6 million rise in interest expense.

Earnings Out of the Water

Core Scientific’s operational revenue was also largely offset by higher general and administrative expenses of $46.0 million. Greater stock-based compensation expenditure of $29.8 million and higher impairments of digital currency assets of $37.2 million drove the increase.

Darin Feinstein, the founder of Core Scientific, took some time after the company’s stellar 2021 results to criticize Greenpeace and Ripple chairman Chris Larsen. This comes after the two teamed up to launch the “change the code, not the climate” campaign earlier this week. The movement intends to transform Bitcoin into a more ecologically friendly consensus architecture, such as Proof of Stake. Greenpeace, according to Feinstein, has sold out Bitcoiners.

Vincent Sanchez
Vincent Sanchez
Vincent Sanchez currently writes articles for Cryptoconstellation. He completed his Msc in finance and had a successful career as an accountant. Vincent enjoys travelling and working out.

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