Bitcoin Miner Core Scientific’s Full-Year Sales Rise to $545M, Beating Estimates

The largest publicly traded bitcoin BTC$92.639,43 miner by hashrate, Core Scientific (CORZ), said its fiscal 2021 revenue rose 803% to $544.5 million, beating analyst estimates of $507.1 million, according to FactSet.

• The miner’s fiscal year adjusted earnings per share (diluted) came in at 32 cents, which may not compare to consensus analyst estimate of 44 cents a share, according to FactSet. The company went public in January through a merger with a special-purpose acquisition company (SPAC), Power & Digital Infrastructure Acquisition.
• It also reported fourth quarter sales, in a presentation, of $301.8 million, beating analyst estimates of $205.7 million, according to FactSet.
• “Across our business we are executing our plans effectively and remain well positioned to continue expanding our capacity and creating shareholder value,” said CEO Mike Levitt in a statement.
• The miner stuck to its 2022 hashrate guidance to 40 EH/s and 42 EH/s. On March 7, Core said it sees hashrate reaching 40 EH/s-42 EH/s by the end of this year, which will be distributed approximately evenly between its self-mining and hosting segments.
• Regarding the 2022 hashrate guidance, the company said on its earnings call that its growth won't be “perfectly linear” due to global supply-chain issues, but believes that it can achieve the year-end objectives.
• “We think that approximately 30% of our 2022 infrastructure development will be completed by the end of the second quarter,” Levitt said on the call, noting that the rest will be during the back end of the year.
• Levitt also said that to raise funding for its growth, the company intends to explore both the traditional debt markets and some of the sort of “newer technology, bitcoin-related financing alternatives,” as well as asset-backed lending options.
• Furthermore, Levitt expects M&A within the mining industry to ramp up in the next 12 months as some companies become capital-constrained. “If I were a betting man, I'd probably say that I think that there going to be opportunities, because I think the capital flows are going to be more discriminating over the course of the next year,” he said.
• Levitt’s comments come as miners are having to look beyond stock issuance to fund their growth. They may have to borrow against their machines or mined crypto, or even put themselves up for sale.
• Shares rose almost 3% to $8.95 in post-market trading on Tuesday as bitcoin prices rose 1.2%. Core Scientific shares are down about 19% this year.

Read more: Bitcoin Miner Core Scientific Has More Than 100% Upside: BTIG

UPDATE (March 29, 21:38 UTC): Updated with details from Core Scientific's earnings call with analyst, and also its Q4 sales.