“Bitcoin Miner Reports Year-over-Year Revenue Decline for 2023, Emphasizes Reduced Losses and Infrastructure Investments Ahead of Bitcoin Halving (CORZ)”

Core Scientific (CORZ), a crypto mining firm, disclosed a decline in year-over-year revenues in its Q4 2023 results, alongside a notable reduction in net losses, triggering a 4% drop in its shares during after-hours trading.

In its earnings release on March 12, Core Scientific revealed a total revenue of $502.4 million for the past year, down by $137.9 million from the $640 million recorded in 2022. This decline in annual revenue was attributed to the company’s exit from the mining rig sales business and an increase in the global Bitcoin hash rate throughout 2023.

For the fourth quarter of 2023, net revenue reached $141.9 million, marking a $20.7 million increase from Q4 2022. Notably, Core Scientific reported a significant improvement in yearly net losses, totaling $246.5 million for 2023 compared to a net loss of $2.14 billion in 2022. In Q4 2023, net losses narrowed to $195.7 million, down from $434.9 million in Q4 2022.

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Following its emergence from a bankruptcy crisis and a 13-month restructuring process, Core Scientific was relisted on the NASDAQ on Jan. 23, resolving $400 million in debt stemming from declining Bitcoin prices, rising energy costs, and debt linked to the bankrupt crypto lender Celsius.

Despite being the largest publicly traded mining firm in the United States, Core Scientific observed a nearly 4.6% drop in share price on March 12, closing at $3.54 per share. This decline persisted in after-hours trading, dropping an additional nearly 4% to around $3.40.

A spokesperson from Core Scientific expressed confidence in the company’s performance despite the subdued market response to its Q4 earnings, attributing it to recent tepid price action across publicly traded Bitcoin miners.

Investors’ apprehension about the impending Bitcoin halving event, which halves rewards for miners, likely contributed to the decline in miner share prices. Cantor Fitzgerald’s report on Jan. 26 highlighted potential challenges for mining firms post-halving, but Core Scientific believes it is well-prepared, updating mining rigs and focusing on hash rate utilization.

Renewed market appetite for crypto mining companies has led analysts to flip bullish on Core Scientific, with HC Wainright and Compass Point upgrading their ratings and setting a price target of $8.50.