Home›Crypto›Market Structure›Core Scientific reports 56% negative self-mining gross…

Core Scientific reports 56% negative self-mining gross margin in Q2

Its colocation segment produced $136.7 million of revenue and $80.0 million of gross profit, driven by 59% gross margins even as self-mining generated a $12.2 million segment gross loss.

Reported · Written up by our desk · Market Structure

Core Scientific reported a negative 56% self-mining gross margin in the second quarter, with the company attributing the shortfall to sharply higher results from its colocation business. In the quarter ended June 30, self-mining brought in $21.5 million of revenue against $33.7 million of cost of revenue, leaving a $12.2 million segment gross loss, according to CryptoSlate.

At the same time, Core Scientific’s high-density colocation segment moved in the opposite direction, generating $136.7 million of revenue and $80.0 million of gross profit for the three months, for a 59% gross margin. The outlet noted that the colocation gross profit exceeded the company’s $70.0 million consolidated total because mining and other segment losses pulled the wider figure lower.

Core Scientific also said it is repurposing remaining mining facilities for high-density colocation “as circumstances allow,” and CryptoSlate reported that management did not identify the quarter as the trigger for conversion or say it was compulsory. In an earnings call transcript, CFO Jim Nygaard said the company was operating mining primarily to offset contractual power costs during the wind-down.

Operationally, the company ended June with nearly 30% fewer miners online than at the end of the first quarter, and self-mining was limited to two sites, CryptoSlate said. Core Scientific reported 395 megawatts of billing colocation capacity at quarter-end, rising to 437 MW by mid-July, which the outlet tied to about $635 million in average annualized colocation GAAP revenue.

More like this

Sources