13 May 2022 15:20, UTC.
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U.S. blockchain hosting provider Core Scientific posted a net loss of $466.2 million for January-March 2022, compared to a net profit of $6.8 million a year earlier.
The company attributed the deteriorating financial result to the following factors:
- Revaluation of the fair value of the $386 million convertible bonds;
- impairment of digital assets of $54 million;
- an increase in total operating expenses of $39.4 million;
- payment of $42.4 million in income taxes.
Earnings for the first quarter were $192.5 million, compared with $54.2 million for the same period last year.
Self-mined bitcoins rose to 3,202 BTC in the first three months, 15.5 times the amount for the first quarter of 2021.
During a conference call with analysts, Core Scientific CEO Mike Levitt noted good opportunities to meet growth targets due to the scale of the business achieved.
The company had previously intended to raise its hash rate to 40-42 EH/s by the end of 2022, but eventually adjusted the benchmark to 30-32 EH/s. Levitt allowed for an upward revision of the target if capital market conditions improve.
According to the top manager, Core Scientific benefits in the current environment from generating revenue from hosting, owning its own infrastructure and “mining the largest number of digital assets in North America.”
By now, the company’s first cryptocurrency mined and on its balance sheet has exceeded 10,000 BTC, Levitt estimated.
“I’m often asked if we’re going to sell our bitcoins. We strongly believe in its future and […] continue to invest in its growth. Nevertheless, we sold digital assets this year, and we don’t rule out taking that step in the future.”, – he stated.
According to the CEO’s comments, Core Scientific is taking a conservative approach. Any possible growth beyond current projections will depend on the availability of the right type of capital available to the company, as well as equipment prices.
In January 2022, Core Scientific went public through a reverse merger with SPAC. Its shares are traded on the Nasdaq stock exchange under the ticker CORZ.
Recall that since April 18, the company began to report on the volume of mined cryptocurrency on a daily basis.
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