Core Scientific Q3 revenue declines on lower digital asset income

Overview

• Core Scientific fiscal Q3 revenue falls to $81.1 mln from $95.4 mln yr/yr

• Net loss narrows to $146.7 mln from $455.3 mln yr/yr

• High-density colocation revenue rises

Outlook

• Core Scientific plans to increase revenue from high-density colocation services

• Company intends to repurpose facilities for high-density colocation services

• Pending acquisition by CoreWeave subject to shareholder approval

Result Drivers

• BITCOIN MINING DECLINE - Revenue from digital asset self-mining fell due to a 55% decrease in bitcoin mined, despite an 88% increase in average bitcoin price

• COLOCATION EXPANSION - High-density colocation revenue at $15 million, up from $10.3 million in the third quarter of 2024 due to the expansion of operations

• NET LOSS NARROWING - Net loss reduced primarily due to a smaller GAAP non-cash fair value adjustment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

• Wall Street's median 12-month price target for Core Scientific Inc is $19.00, about 4.9% above its October 23 closing price of $18.06

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw23Z1VXa

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