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Core Scientific, Inc./tx (CORZ)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue of $94.9M declined 33% YoY and 0.5% QoQ; GAAP diluted EPS was $(0.60). Adjusted EBITDA was $13.3M versus $56.7M in Q4’23 as self-mining margins compressed post-halving and with the shift of capacity toward HPC hosting .
  • Balance sheet was fortified by a $625M 0% convertible due 2031 and ended the quarter with $836.2M in cash; total debt rose to $1.124B with the 0%/3% converts layered in during 2H’24 .
  • Strategic HPC inflection: CoreWeave expansion added ~70 MW at Denton (to ~260 MW on site), lifting total CoreWeave contracted critical IT load to ~590 MW and total potential revenue to >$10B over 12 years; delivery schedule now ~250 MW by YE25 and ~590 MW by early 2027 (push vs prior plan) .
  • Mining KPIs reflected the April halving and mix shift: 974 BTC self-mined in Q4 (vs. 3,042 in Q4’23 and 1,115 in Q3’24) at $51,035 cash cost/BTC; fleet power averaged $0.037/kWh in Q4 and ~$0.040/kWh for 2024 (beat 4.2–4.4c guidance) .

What Went Well and What Went Wrong

  • What Went Well

    • Landmark HPC expansion: “With this latest expansion, our total contracted value with CoreWeave now exceeds $10 billion,” and ~590 MW contracted across six sites; Denton becomes “one of the largest GPU supercomputers in North America” .
    • Balance sheet and liquidity: $625M 0% convert in December and $460M 3% convert in August lowered cost of capital; cash $836.2M at 12/31/24 .
    • Power cost execution: Q4 fleet power rate $0.037/kWh; 2024 average ~$0.040/kWh vs. 4.2–4.4c guidance target; management emphasized cost discipline and non-GAAP cash margins for HPC (16% in Q4) .

  • What Went Wrong

    • Revenue/margin compression: Total revenue down 33% YoY; self-mining gross margin fell to 2% (from 29% YoY) on lower BTC mined post‑halving and mix shift to HPC .
    • Timeline push: CoreWeave delivery schedule updated to ~250 MW by YE25 and ~590 MW early 2027 vs. prior 500 MW by 2H’26; drivers included permitting and supply chain complexities for larger-scale, next-gen GPU specs .
    • Opex higher: Q4 operating expenses rose to $43.6M (+$13.6M YoY) on headcount for HPC transition, stock-based comp, and post-emergence advisory fees; GAAP net loss widened to $(265.5)M on warrant/CVR mark-to-market .

Financial Results

Overall P&L snapshot (oldest → newest)

MetricQ4 2023Q3 2024Q4 2024
Revenue ($M)$141.9 $95.4 $94.9
Gross Profit ($M)$39.3 $(0.2) $4.8
Gross Margin %28% ~0% 5%
Operating (Loss)/Income ($M)$3.9 $(41.2) $(39.8)
Net Loss ($M)$(195.7) $(455.3) $(265.5)
Diluted EPS ($)$(0.51) $(1.17) $(0.60)
Adjusted EBITDA ($M)$56.7 $10.1 $13.3
Cash & Equivalents ($M)$50.4 $253.0 $836.2

Segment revenue and margins (oldest → newest)

SegmentQ4 2023 Revenue ($M)Q3 2024 Revenue ($M)Q4 2024 Revenue ($M)Q4 2023 GM%Q3 2024 GM%Q4 2024 GM%
Self‑Mining$112.2 $68.1 $79.9 29% (9)% 2%
Hosted Mining$29.8 $16.9 $6.5 23% 29% 36%
HPC Hosting— $10.3 $8.5 — 13% 9% (13% excl. power pass-through)

Key KPIs (oldest → newest)

KPIQ4 2023Q3 2024Q4 2024
Self‑mined BTC (units)3,042 1,115 974
Total Hash Rate (EH/s)—23.4 (20.4 self, 3.0 hosting) 20.1 (19.1 self, 1.0 hosting)
Fleet Power Rate ($/kWh)$0.045 (prior year) $0.038 $0.037
Cash Cost/BTC ($)—$42,351 $51,035
Cash-based Hash Cost (¢/TH/day)—3.1¢ 3.3¢
Total Debt ($M)$998 (12/31/23) $512 (9/30/24) $1,124 (12/31/24)
Pro forma diluted shares (M)—~474 (as of 10/31/24) ~501 (as of 2/20/25)

Notes: HPC non-GAAP cash gross margin for Q4 was ~16% (excludes power pass-through and some non-cash) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Avg fleet power priceFY 20244.2–4.4¢/kWh ~4.0¢/kWh actual; Q4 at 3.7¢ Beat
HPC delivery (CoreWeave)Cumulative500 MW by 2H’26 ~250 MW by YE’25; ~590 MW by early 2027 Pushed out
CoreWeave contract sizeMulti‑year500 MW; ~$8.7B over 12 yrs ~590 MW; >$10B+ total Raised
Statutory tax rateFY 2025~23% (2024 modeling) ~22% modeling (2025) Lowered
BTC fleet CapEx2024–2025No 2024 refresh; plan 2H’25 with Block chips Reiterated: no near-term BTC CapEx; refresh with Block chips 2H’25 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Current Period (Q4 2024)Trend
HPC/CoreWeave scale and economics500 MW contracted; $8.7B 12-year; 75–80% cash gross margin; Austin lease nuances +70 MW at Denton; ~590 MW; >$10B; Denton among largest GPU supercomputers Expanding scale
Delivery timeline & permitting/supply chainBegin deliveries by 1H’25; supply chain tracking for key electrical gear Push of a 140 MW building into early ’26; early 2027 for full ~590 MW; due diligence, equipment/permit complexity Timing elongated
Customer diversificationAimed to add hyperscalers/enterprise; 300+ MW potential at existing sites + new sites Goal: CoreWeave <50% of critical IT load by 2028; active talks with “dozens” incl. most hyperscalers Priority rising
Power strategyPursue additional allocations at existing sites; utility-first process Focus on blue-chip assets near metros; exit DR programs for HPC; new PPAs in dereg markets Focus/refinement
BTC mining strategyConsolidate to low-cost sites; plan Block chip refresh 2H’25 No BTC CapEx until 2H’25; post-halving economics managed via power strategy Maintained
Financing & capital structure$460M 3% convert; refinanced higher-cost debt $625M 0% convert; >$830M cash entering 2025; pathway to investment-grade over 3–5 yrs (goal) Improved costs/liquidity
AI demand & marketPrice discovery in ’24; strong interest Demand resilient post-DeepSeek; more due diligence; focus on metro proximity and latency Robust but selective

Management Commentary

  • CEO: “With this latest expansion, our total contracted value with CoreWeave now exceeds $10 billion…We view this as one of the largest HPC deployments in the United States.” .
  • CEO: “Denton is going to be one of the largest supercomputers in the United States” .
  • CFO: “Our 2024 average annual fleet-wide power rate of $0.04 per kilowatt hour…our average fleet-wide power rate for the fourth quarter was $0.037” .
  • CFO: “We do not expect to increase or refresh our Bitcoin mining fleet until…second half of 2025…We are not planning any further CapEx this year associated with our Bitcoin mining business.” .
  • CEO on diversification: “Top priority…sign enough contracts so that CoreWeave represents less than 50% of critical IT load by the end of 2028.” .

Q&A Highlights

  • Permitting/supply chain drove schedule shift: incremental design changes for GB200/GB300 readiness and equipment availability required permit revisions; confidence in revised timelines .
  • Denton economics: new 70 MW tranche keeps same rents; CORZ funds ~$1.5M/MW on this piece, receiving full rent with no capex credit offset for first two years .
  • Demand resilience post-DeepSeek: pipeline strength intact; customers want faster delivery and more diligence; preference for sites near metros for latency .
  • Capital allocation: large cash balance enables selective funding; long-term goal to evolve toward investment-grade capital structure in a high-capex industry .
  • Target cadence: ~250 MW critical IT load delivered by YE’25 (includes 16.5 MW Austin), with a prior 140 MW building pushed into early ’26 .

Estimates Context

  • We attempted to retrieve Q4 2024 S&P Global consensus (revenue, EPS, EBITDA) for CORZ, but the request was blocked due to an SPGI daily limit; therefore, we cannot present vs-consensus comparisons for Q4 2024 at this time. We will update once S&P Global access is available [SPGI request limit error].

Key Takeaways for Investors

  • HPC pivot is real and scaling: contracted CoreWeave critical IT load rose to ~590 MW with >$10B in potential revenue, positioning CORZ as a top AI/HPC data center partner; execution on delivery schedule is the key swing factor .
  • Timeline push vs. Q3 plan is the main overhang: ~250 MW by YE’25 and ~590 MW early 2027 (vs. 500 MW by 2H’26 previously) reflects permitting/equipment realities; delivery credibility will drive multiple .
  • Balance sheet improved materially: $625M 0% + $460M 3% converts reduced funding cost and increased flexibility; cash $836M provides runway to co-fund select HPC builds (e.g., $1.5M/MW at Denton expansion) .
  • Mining headwinds largely macro/mix-driven: BTC halving and capacity reallocation compressed self-mining margins; power cost execution (3.7c in Q4) and planned Block chip refresh in 2H’25 are levers to stabilize mining economics .
  • Customer diversification is now the #1 2025 objective: Management aims for CoreWeave to be <50% of critical IT load by 2028; signing a second hyperscaler/enterprise tenant would be a major de-risking event .
  • Watch near-term catalysts: additional site power allocations, new customer signings, monthly production updates, and construction milestones at Denton/Austin/Auburn; these will likely drive sentiment as consensus numbers become available .

Appendix – Additional Relevant Disclosures and Press Releases

  • Denton lease amendments expanded land/power access (to ~394 MW) to enable HPC growth .
  • December 2024: $550M upsized 0% convert pricing (~$22.49 conversion), settled Dec 5; later reflected as $625M note outstanding by 12/31/24 .
  • Production cadence: December 2024 monthly operations release published Jan 6, 2025 (see IR site) [37: header listing].

Notes on sources:

  • Q4 2024 8‑K and press release excerpts and financial statements .
  • Q4 2024 earnings call transcript –.
  • Q3 2024 8‑K and press release, statements and call transcript –.
  • CoreWeave expansion press release (Feb 26, 2025) .
  • Convertible notes press release (Dec 3, 2024) .

If you want us to add vs-consensus beats/misses and estimate revisions once S&P Global access is restored, say the word and we’ll append an estimates section with the full comparison.