AUSTIN, Texas - Core Scientific, Inc. (NASDAQ:CORZ), a key player in digital infrastructure for bitcoin mining and high-performance computing, has disclosed its unaudited production and operations updates for July 2024. The company reported mining 411 bitcoins for itself and estimated that its customers mined 110 bitcoins using its data centers during the month.
The firm, which operates approximately 214,000 bitcoin miners across seven data centers in the United States, achieved an energized hash rate of 25.3 EH/s by the end of July.
In a strategic move to support the Bitcoin Network's sustainability, Core Scientific became the first bitcoin miner to join Foundry Donate, a program that funds core developers of the Bitcoin network through connections with nonprofit organizations.
During July, the company sold 401 bitcoins, generating approximately $25.2 million in sales proceeds. This activity is part of Core Scientific's post-halving strategy to maximize profitability, which includes curtailing mining operations based on efficiency, hash price, and power prices. This strategy also contributed to the local grid by delivering 30,762 megawatt hours of power.
As Core Scientific prepares for future growth, it is planning for the integration of Block's new 3 nanometer ASIC chip next year, which is anticipated to drive significant miner refresh and hash rate growth. Additionally, the company is progressing with a 100 MW expansion project at its Pecos, Texas data center to accommodate relocated bitcoin miners.
Core Scientific's upcoming participation in Cannacord Genuity's 44th Annual Growth Conference and the 2024 Gateway Conference was also announced.
In other recent news, Core Scientific, Inc. has made significant strides in its operations. The company has secured high-performance computing hosting contracts totaling 270 megawatts, which are projected to generate over $4.7 billion in revenue over the next 12 years. The company's operational infrastructure has also grown to 832 MW following a 72 MW expansion at its Denton, Texas data center.
Core Scientific has also expanded its hosting agreement with CoreWeave, expecting to generate an additional $1.225 billion in cumulative revenue. The company's CEO, Adam Sullivan, has secured a new employment agreement that includes a base salary of $625,000 and an annual incentive target of 125% of the base salary, contingent upon performance criteria.
In terms of analyst coverage, Core Scientific Inc. received an Overweight rating from Cantor Fitzgerald, highlighting the company's strategic shift following its partnership with CoreWeave.
Finally, Core Scientific has solidified its executive team with a new employment agreement for its Chief Legal and Administrative Officer, Todd M. DuChene. DuChene will receive a base salary of $500,000 and is eligible for participation in the annual incentive plan starting in 2024.
InvestingPro Insights
As Core Scientific, Inc. (NASDAQ:CORZ) continues to expand its bitcoin mining operations and support the Bitcoin Network's sustainability, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Core Scientific has a market capitalization of $1.58 billion, reflecting its significant presence in the digital infrastructure space. Despite a slight decline in revenue growth of -1.3% over the last twelve months as of Q1 2024, the company experienced a substantial quarterly revenue growth of 48.6% in Q1 2024, indicating potential for future financial improvement.
The stock's high price volatility is noteworthy, as reflected by the 183.12% six-month price total return, and a remarkable 165.37% return over the last three months. This volatility may present opportunities for investors looking for short-term gains, but it also requires a cautious approach to manage potential risks. Additionally, Core Scientific's price is currently at 72.57% of its 52-week high, with a previous close at $8.89.
InvestingPro Tips suggest that Core Scientific's net income is expected to grow this year, which could be a positive signal for investors considering the company's future profitability. Furthermore, with analysts predicting the company will be profitable this year, there could be a turning point on the horizon for Core Scientific's financial trajectory. For those interested in a deeper analysis, InvestingPro offers additional tips on Core Scientific, providing a more comprehensive investment outlook.
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