Core Scientific strikes digital gold: Revenue up 800%, gross profit up 2500%

Published at: March 30, 2022

U.S. Bitcoin mining firm Core Scientific has posted bullish 2021 fiscal year results compared to the year prior, with its revenue increasing by 803% to $544.5 million and gross profit growing 2,443% to $238.9 million.

The major BTC miner highlighted growth in hash rate, mining equipment sales, hosting revenue, digital asset mining income as key reasons for the improved performance. The booming price of Bitcoin (BTC) no doubt also played a part.

The results were announced on March 29 and show a total net income (take-home after expenses) totaling $47.3 million last year. The figure marks a drastic increase from the net loss of $12.2 million seen in 2020.

In terms of Core Scientific’s revenue streams, hosting revenue increased 91% from 2020 to $79.3 million in 2021, equipment sales increased by 1,871% to $248.2 million and digital asset mining income grew 3,440%, to $216.9 million.

Core Scientific CEO Mike Levitt said that the firm’s BTC mining hash rate increased “from less than 3.0 EH/s at year-end 2020 to 13.5 EH/s at year-end 2021” which resulted in more than 5,700 mined BTC.

Looking forward, Levitt stated that the company is on track to meet its expansion plans in 2022:

“In the first two months of 2022 our total hashrate grew to 15.9 EH/s and we self-mined over 2,000 Bitcoins. Across our business we are executing our plans effectively and remain well positioned to continue expanding our capacity and creating shareholder value.”

While the firm posted strong increases across the board, the trend also occurred on the expenses side of the equation, with the cost of revenue increasing by 500% to $305.6 million and net income being partially offset by $41.3 million worth of “non-operating expenses related to our convertible notes” and a $14.6 million increase in interest expense from financing arrangements.

i'd say $CORZ blew earnings out of the waterhttps://t.co/deIMOs8N2p

— Dave Gretta | author of Night Trading (@DGretta_Author) March 29, 2022

Core Scientific also noted that its operating income was also “primarily offset by $46.0 million of higher general and administrative expenses, which was driven by $29.8 million of higher stock-based compensation expense, and $37.2 million of higher impairments of digital currency assets.

Following the company’s impressive 2021 results, Core Scientific founder Darin Feinstein also took some time to slam Greenpeace and Ripple chairman Chris Larsen, after the duo teamed up this week to launch the “change the code, not the climate” campaign. The initiative aims to fundamentally change Bitcoin to a more environmentally friendly consensus model such as Proof of Stake. Feinstein said Greenpeace had sold out Bitcoiners.

Yesterday, out of the 100+ million global active bitcoin users 99% supported @Greenpeace Then, for $5M #Greenpeace sold all of them out, to support an unregistered security

— Darin Feinstein (@DarinFeinstein) March 30, 2022