- Preliminary 2021 revenue of $515 million to $545 million, net
income of $50 million to $60 million and adjusted EBITDA of $225
million to $235 million
- Expects total operating hashrate of 31 EH/s to 40-42 EH/s, and
operating capacity from 1.0 GW to 1.2-1.3 GW in 2022
- Produced 981 bitcoins, increased self-mining hashrate to 8.2
EH/s and increased hosted hashrate to 7.7 EH/s in February
2022
Core Scientific, Inc. (NASDAQ: CORZ) ("Core Scientific"
or “the Company”), a leader in high-performance, net carbon neutral
blockchain infrastructure and software solutions, today announced
preliminary financial results for the fiscal year ending December
31, 2021, initial fiscal year 2022 operating guidance and February
production and operations updates.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20220307005380/en/
Core Scientific is a leader in blockchain
infrastructure and digital asset mining. (Graphic: Business
Wire)
2021 PRELIMINARY RESULTS AND EARNINGS RELEASE DATE
“Our team’s outstanding efforts this past year delivered strong
financial results that comfortably exceeded our expectations,” said
Mike Levitt, Core Scientific Chief Executive Officer. “We expect
2021 revenue to be $515 million to $545 million, net income of $50
million to $60 million and adjusted EBITDA of $225 million to $235
million. We ended the year having produced 5,769 bitcoins and
operating total hashrate of 13.5 EH/s, well ahead of our
anticipated 11.0 EH/s. We are pleased with the performance of our
company, our team and our infrastructure, and look forward to
continuing to build value for our shareholders in 2022.”
Core Scientific expects to release fourth quarter and full
fiscal year 2021 results after the market closes on March 29, 2022
and will hold a conference call later that day. Please visit the
Events and Presentations section of the Company’s website to learn
more:
https://investors.corescientific.com/investors/events-and-presentations/default.aspx
2022 OPERATING GUIDANCE
“We believe that we are well positioned to achieve 40 to 42 EH/s
of total hashrate by year end 2022, distributed approximately
evenly between our self-mining and hosting segments. Demand for our
hosting capacity remains strong and continues to exceed our
available supply. Our construction and power team is on pace to
achieve 1.2 to 1.3 GW of operating infrastructure by year end to
continue expanding our hosting and self-mining capacity,” Mr.
Levitt added.
Summary of preliminary 2021 financial results and 2022 operating
guidance:
Preliminary Financial Results
Full Year 2021
Total Revenue
$515 to $545 million
Net Income
$50 to $60 million
Adjusted EBITDA
$225 to $235 million
Total Hashrate (EH/s)
13.5 EH/s
Operating Megawatts ("MW")
457 MW
Operating Guidance
Full Year 2022
Total Hashrate (EH/s)
40 to 42 EH/s
Operating Gigawatts ("GW")
1.2 to 1.3 GW
CAPITAL MARKETS ACTIVITIES
Core Scientific’s Board of Directors voted unanimously to
accelerate by approximately four months the expiration of the
“lock-up” restricting the sale of stock held by early (pre-public)
investors in the company. The Board determined that it was in the
best interests of the company to increase the shares available for
trading in the open market.
“By enabling early private round investors to sell shares we
hope to increase our traded float,” commented Mr. Levitt. “We
welcome these sales as we believe that increasing our float will
benefit our company and is in the best long-term interests of all
of our shareholders. Affiliates of the company, including myself,
my fellow board members Matt Minnis and Darin Feinstein, and
executive officers Todd DuChene, Michael Trzupek and Brian Neville,
are not currently eligible to sell shares under the exemption
provided by Rule 144.”
FEBRUARY UPDATE
Mr. Levitt continued, “We ended 2021 operating data centers in
four states with total mining capacity of 13.5 EH/s. Two months
later we were operating in five states, with a sixth state in view,
and had increased our hashrate to 15.9 EH/s. Across our business,
our team is delivering strong growth and outstanding results that
continue to position Core Scientific as a leading blockchain
infrastructure provider and digital asset self-miner.”
Self-Mining
Core Scientific’s self-mining operations produced 981 bitcoins
in February, averaging 35 bitcoins per day, an increase from
January’s 34.7 daily average, and representing a year over year
increase of 313%. As of February 28, 2022, the Company held 7,355
bitcoins produced from operations.
As of February month end, Core Scientific operated its own fleet
of more than 80,000 bitcoin miners, producing 8.2 EH/s.
Hosting
In addition to its self-mining fleet, as of February 28, 2022,
Core Scientific provided infrastructure, technology and operating
support for a diverse group of customers representing 7.7 EH/s.
“Strong demand for hosting is driven by both additional capacity
requests from existing customers and inquiries from new customers,”
said Mr. Levitt. “While requests for hosting currently exceed our
available supply, planned infrastructure additions in late 2022
should create capacity for additional hosting customers.”
Infrastructure
Phase 1 of the Company’s Denton, Texas facility began operation
on February 22 with an initial operating capacity approaching 22
MW. When completed, the Company anticipates the entire site will
comprise seven of the Company’s proprietary cathedral structures as
well as a fleet of three-dozen Antbox mining containers. The
Company expects to approach full operating capacity of 300 MW at
the Denton data center by the end of 2022.
Grid Support
In the month of February, the Company powered-down portions of
its operations in two states on 14 separate occasions. Aggregate
electrical curtailment for these events exceeded 4,400
megawatt-hours. As the Company has demonstrated throughout the
winter months, it will continue to work with the communities and
utility companies in which it operates to enable and ensure
electrical grid stability.
ABOUT CORE SCIENTIFIC
Core Scientific is one of the largest publicly traded, net
carbon-neutral blockchain infrastructure providers and miners of
digital assets in North America. Core Scientific has operated
blockchain infrastructure in North America since 2017, using its
facilities and intellectual property portfolio that has grown to
more than 70 patents or applications for digital asset hosted
mining and self-mining. Core Scientific operates data centers in
Georgia, Kentucky, North Carolina, North Dakota and Texas, and
expects to commence operations in Oklahoma in the second half of
2022. Core Scientific’s proprietary Minder® fleet management
software combines the Company’s hosting expertise with data
analytics to deliver maximum uptime, alerting, monitoring and
management of all miners in the Company’s network. To learn more,
visit http://www.corescientific.com.
As of September 30, 2021, over 50% of the power used in Core
Scientific’s operation was generated from non-carbon emitting
sources by local power providers pursuant to long-term power
contracts. The Company determines whether power is generated from
non-emitting energy sources from dispatch reports or grid
generation mix reports provided by the Company’s power providers.
Based on these reports Core Scientific purchased Green-e certified
renewable energy credits (“RECs”) to offset 100% of the carbon
produced as a result of its contracted power. The Company expects
to maintain its net carbon neutrality by increasing its overall use
of renewable power and by purchasing RECs when necessary.
FORWARD LOOKING STATEMENTS AND EXPLANATORY NOTES
This press release includes “forward-looking statements'' within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target” or other
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These
forward-looking statements include, but are not limited to, those
related to the Company’s ability to scale and grow its business,
source clean and renewable energy, the advantages and expected
growth of the Company, future estimates of revenue, net income and
adjusted EBITDA, future estimates of computing capacity and
operating capacity, future demand for hosting capacity, future
estimate of hashrate (including mix of self-mining and hosting)
operating gigawatts, future projects in construction or negotiation
and future expectations of operation location, orders for miners
and critical infrastructure, future estimates of self-mining
capacity, the public float of the Company’s shares, future
Infrastructure additions and their operational capacity, and
operating capacity and site features of the Company’s operations
center in Denton, Texas. These statements are provided for
illustrative purposes only and are based on various assumptions,
whether or not identified in this press release, and on the current
expectations of the Company’s management. These forward-looking
statements are not intended to serve, and must not be relied on by
any investor, as a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of the Company. These forward-looking statements
are subject to a number of risks and uncertainties, including those
identified in the Company’s reports filed with the U.S. Securities
& Exchange Commission, and if any of these risks materialize or
our assumptions prove incorrect, actual results could differ
materially from the results implied by these forward-looking
statements. Accordingly, undue reliance should not be placed upon
the forward-looking statements.
Year over year comparisons are based on the combined results of
Core Scientific and its acquired entities.
Core Scientific provides this and any future similar unaudited
updates to provide shareholders with visibility into the Company’s
results and progress toward previously announced capacity and
operational projections.
ADJUSTED EBITDA
Adjusted EBITDA is a non-GAAP financial measure defined as our
net income or (loss), adjusted to eliminate the effect of (i)
interest income, interest expense, and other income (expense), net;
(ii) provision for income taxes; (iii) depreciation and
amortization; (iv) stock-based compensation expense; and (v)
certain additional non-cash and non-recurring items. For additional
information, including the reconciliation of net income (loss) to
Adjusted EBITDA, please refer to the table below. We believe
Adjusted EBITDA is an important measure because it allows
management, investors, and our board of directors to evaluate and
compare our operating results, including our return on capital and
operating efficiencies, from period-to-period by making the
adjustments described above. In addition, it provides useful
information to investors and others in understanding and evaluating
our results of operations, as well as provides a useful measure for
period-to-period comparisons of our business, as it removes the
effect of net interest income (expense), taxes, certain non-cash
items, variable charges, and timing differences. Moreover, we have
included Adjusted EBITDA in this press release because it is a key
measurement used by our management internally to make operating
decisions, including those related to operating expenses, evaluate
performance, and perform strategic and financial planning.
The above items are excluded from our Adjusted EBITDA measure
because these items are non-cash in nature, or because the amount
and timing of these items is unpredictable, not driven by core
results of operations and render comparisons with prior periods and
competitors less meaningful. However, you should be aware that when
evaluating Adjusted EBITDA, we may incur future expenses similar to
those excluded when calculating these measures. Our presentation of
this measure should not be construed as an inference that its
future results will be unaffected by unusual or non-recurring
items. Further, this non-GAAP financial measure should not be
considered in isolation from, or as a substitute for, financial
information prepared in accordance with GAAP. We compensate for
these limitations by relying primarily on GAAP results and using
Adjusted EBITDA on a supplemental basis. Our computation of
Adjusted EBITDA may not be comparable to other similarly titled
measures computed by other companies because not all companies
calculate this measure in the same fashion. You should review the
reconciliation of net income (loss) to Adjusted EBITDA below and
not rely on any single financial measure to evaluate our
business.
The following table presents a reconciliation of net income
(loss) to Adjusted EBITDA for the fiscal years ended December 31,
2021 and 2020:
Core Scientific, Inc
Reconciliation of Forward
Looking Non-GAAP Financial Measures
(In millions,
unaudited)
2021
2020
Low
High
Results
Adjusted EBITDA
Net income (loss)
$
50
$
60
$
(12
)
Adjustments:
Interest expense, net
45
45
4
Income tax expense (benefit)
4
4
-
Depreciation and amortization
29
29
9
Loss on debt from extinguishment
8
8
1
Stock-based compensation expense
39
39
3
Loss on legal settlements
3
3
-
Fair value adjustment on convertible
note
16
16
-
Gain from the sale of digital currency
assets
(3
)
(3
)
(0.1
)
Impairment of digital currency assets
36
36
0
Other
0.1
0.1
0.1
Adjusted EBITDA
$
225
$
235
$
6.1
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version on businesswire.com: https://www.businesswire.com/news/home/20220307005380/en/
Investors: Steven Gitlin ir@corescientific.com
Media: press@corescientific.com
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