Core Scientific (CORZ), a Bitcoin mining and digital infrastructure company, reported fourth-quarter sales of $79.8 million for the period ended December 31, compared with $94.93 million in the same period last year. The consensus estimate was for revenue of $122.08 million, according to LSEG data.
The company reported a loss of $0.42 per share, compared to the expected loss of $0.08 per share.
As Bitcoin miners continue to adjust for the April 2024 halving, performance has been weak, cutting block rewards in half and squeezing margins across the industry. Increasing network hash rates and rising energy and infrastructure costs are putting pressure on profitability, especially for operators that continue to expand new capacity.
Core has repositioned itself beyond pure self-mining towards hosting and colocation services for high-performance computing clients, including AI workloads. CEO Adam Sullivan said the company is leaning toward that strategy.
“We are now past the halfway point of our existing buildout and are expanding our colocation platform to a pipeline of 1.5 gigawatts of leasable capacity,” Core Scientific CEO Adam Sullivan said in a statement. “With our multi-regional footprint and proven execution, we are accelerating our RFS schedule across multiple sites for sustained growth.”
As part of this plan, the company announced it will expand into Texas and add approximately 430 megawatts of total power capacity. Capacity was also increased by approximately 300 megawatts in other regions.
CORZ stock fell 4.5% in after-hours trading.
Meanwhile, Bitcoin mining and data center development company Riot Platforms (RIOT) reported fourth-quarter revenue of $647.4 million, up from $376.7 million in the year-ago period. Analysts expected revenue of $157.4 million, with $136 million from Bitcoin mining and $21.3 million from engineering.
RIOT stock remained flat after hours.
