Earning Date, Transcript Summary & Report

Landmark Data Center Agreement: Core Scientific secured a landmark 16-megawatt agreement with CoreWeave, with a total revenue potential of $8.7 billion over 12 years, marking a significant step in their evolution into a leading data center business.

HPC Infrastructure Expansion: The company expanded its HPC infrastructure capacity, ending the year with over 1,300 megawatts of contracted power, including a nearly 100-megawatt expansion at the Denton site.

Customer Contract Diversification: Core Scientific is actively pursuing new customer contracts to diversify its HPC customer base, with ongoing discussions with major hyperscale providers and enterprise companies.

Balance Sheet Improvement: The company significantly improved its balance sheet in 2024, reducing total debt by $270 million and entering 2025 with over $830 million in cash, positioning it well for future growth.

Power Rate Efficiency: Core Scientific's average fleet-wide power rate for 2024 was $0.04 per kilowatt hour, beating their target guidance, which reflects operational efficiency.

Strategic Partnership Expansion: The company announced a significant expansion of its relationship with CoreWeave, adding approximately 70 megawatts of critical IT load, representing $1.2 billion in additional contracted revenue over 12 years.

HPC Capacity Expansion: Core Scientific expects to deliver approximately 250 megawatts of HPC capacity to CoreWeave by the end of 2025, with the full 590 megawatts coming online in early 2027, indicating strong demand and growth potential.

Capacity Expansion Plans: The company aims to add another 300 megawatts of capacity across existing sites by the end of 2027 and sees significant greenfield opportunities for approximately 400 megawatts of new capacity over the next three years.

Revenue Decline Analysis: Total revenue decreased by 33% year-over-year to $94.9 million, indicating a significant decline in financial performance.

Adjusted EBITDA Challenges: Adjusted EBITDA was reported at $13.3 million, reflecting challenges in maintaining profitability amid operational hurdles.

Digital Asset Revenue Decline: Digital asset self-mining revenue fell by 29%, driven by a decrease in Bitcoin earned from 3,042 to 974, despite a 130% increase in Bitcoin price.

Hosted Mining Revenue Decline: Digital asset hosted mining revenue dropped from $30 million to $6.5 million, as the company sunsets hosted mining contracts, indicating a strategic shift that may impact revenue.

Net Loss Increase: The net loss for Q4 2024 was $265 million, worsening from a net loss of $195.7 million in the same period last year, highlighting ongoing financial struggles.

Rising Operating Expenses: Operating expenses increased to $43.6 million from $30 million year-over-year, suggesting rising costs that may not be sustainable.

Debt Management Challenges: The company has a total debt balance of approximately $1 billion, despite efforts to reduce it by $270 million through Chapter 11 restructuring, indicating ongoing financial pressure.

Bitcoin Mining Cost Analysis: The direct cash cost to self-mine a Bitcoin was reported at $51,035, which may not be sustainable given the current market conditions and operational costs.