Core Scientific Q4 rev falls on lower bitcoin mining revenue

Overview

• Digital infrastructure firm's Q4 revenue fell yr/yr due to lower bitcoin mining revenue

• Net income for Q4 improved due to a non-cash fair value gain

• Company restated previous financial results due to accounting errors

Outlook

• Core Scientific plans to expand power capacity by ~430 MW in Hunt County, Texas

• Company aims to repurpose facilities for AI-related workloads and colocation services

• Core Scientific did not provide specific financial guidance for future quarters in press release

Result Drivers

• COLOCATION EXPANSION - Increased colocation revenue driven by expansion of colocation operations since prior year

• POWER CAPACITY INCREASE - Expanded power capacity by ~300 MW at existing locations in Dalton, Georgia and Pecos, Texas

• STRATEGIC SHIFT - Decline in digital asset mining revenue due to strategic shift to high-density colocation business

Company press release: ID:nBw7MMYZDa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "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 $25.50, about 50.3% above its February 27 closing price of $16.97

• The stock recently traded at 222 times the next 12-month earnings vs. a P/E of 103 three months ago

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