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Core Scientific Reports $502M in 2023 Revenue, Down From $640M in 2022

Ruholamin Haqshanas
Last updated: | 2 min read
Core Scientific

Crypto mining firm Core Scientific has announced a decline in year-on-year revenues in its Q4 2023 results, accompanied by a substantial reduction in net losses. 

According to Core Scientific’s earnings release on March 12, the company’s total revenue for 2023 amounted to $502.4 million, marking a decrease of $137.9 million compared to the $640 million achieved in 2022.

The decline in yearly revenue can be attributed to Core Scientific’s exit from the mining rig sales business, as well as the increased global Bitcoin hash rate observed throughout 2023.

Core Scientific Reports $141M in Net Revenue in Q4

In the fourth quarter of 2023, Core Scientific reported a net revenue of $141.9 million, representing an increase of $20.7 million compared to Q4 2022. 

Moreover, the company demonstrated significant improvement in yearly net losses, with 2023 recording a net loss of just $246.5 million, compared to a staggering $2.14 billion net loss in 2022. 

In Q4 2023, net losses narrowed to $195.7 million, down from $434.9 million in Q4 2022.

“In 2023, Core Scientific earned more self-mined bitcoin than any other listed miner in North America, positioning us for continued strong performance in 2024 based on current bitcoin prices and operating performance,” said Adam Sullivan, Core Scientific Chief Executive Officer. 

“We own and operate the largest bitcoin mining infrastructure in the industry in terms of operating megawatts, and we have demonstrated superior hash rate utilization.”

Core Scientific was relisted on the NASDAQ on January 23 after a bankruptcy crisis and a 13-month restructuring process to address $400 million in debt. 

This debt was primarily caused by declining Bitcoin prices, rising energy costs, and obligations tied to the bankrupt crypto lender, Celsius. 

The company’s shares experienced a 4.6% drop on March 12, closing the day at $3.54 per share. 

This downward trend continued in after-hours trading, with a further decline of nearly 4% to approximately $3.40.

Mining Firms Report Impressive Earnings in 2024

Aside from Core Scientific, other major crypto miners have also reported impressive earnings. 

For one, mining firm Riot Platforms saw its total revenues reach an all-time high of $281 million in 2023.

The company said it produced 6,626 Bitcoins during the year, a 19% increase compared to 5,554 during the same twelve-month period in 2022.

Meanwhile, leading cryptocurrency miners are bracing themselves for the challenges ahead as the mining industry prepares for a major transformation with the 2024 Bitcoin halving event.

Asset manager CoinShares analysis suggests that Riot, TeraWulf, and CleanSpark are among the best-positioned companies to weather the impending storm.

The Bitcoin halving event, slated for April 2024, entails a reduction in the block reward given to miners by half, leading to a decrease in the rate of new Bitcoin creation.

This deflationary policy is designed to control the network’s supply. While this reduction in rewards is part of Bitcoin’s intrinsic design, it presents miners with a unique set of challenges.