April 21, 2024

The prominent Bitcoin mining firm Core Scientific has recorded a 4% drop in its shares. The decline came after the company published its Q4 2023 report, which indicated a decrease in its year-to-year revenues.

The company disclosed its plans to curb more losses in the new present quarter as it awaits the upcoming Bitcoin halving.

Core Scientific Releases Report For Q4 2023 And Full Fiscal Year 2023

On March 12, Core Scientific released a report disclosing a total revenue of $502.4 million in 2023. Notably, the value reflected a drop of $137.9 million from that of 2022. Certain factors contributed to the decrease in the company’s yearly revenue.

These include the global surge in Bitcoin’s hash rate in 2023 and Core Scientific’s exit from mining rig sales. However, despite the decline in its yearly revenue, Core Scientific saw an increase in its net revenue in the last quarter of 2023. 

According to the report, the company’s revenue for Q4 2023 rose to $141.9 million, with an additional $20.7 million from Q4 2022. Further, the company disclosed a remarkable reduction in yearly net losses, which plummeted to $246 million in 2023 from $2.14 billion in 2022. 

Likewise, the quarterly net losses went from $434.9 million in Q4 2022 to $195.7 million in Q4 2023. Core Scientific reported mining a total of 13,762 BTC tokens in 2023. This value stands as the largest bitcoin mined by a publicly traded mining entity in the US.

On January 23, Core Scientific was relisted on the NASDAQ following its survival of a bankruptcy crisis. The mining firm had passed through a restructuring process that lasted 13 months to resolve a  $400 million debt. Core Scientific suffered the debt due to the past decline in BTC’s prices and increased energy costs. 

Also, a debt connected to a bankrupt crypto-lending firm, Celsius, contributed to the miner’s crisis.

Core Scientific CORZ Drops Following Its Report Publication

Following the release of its report, Core Scientific shares plummeted by almost 4.6% on March 12. The stock closed the day at $3.54 per share. According to data from Google Finance, the decline continued during after-hours trading by an additional 4% to $3.40.

However, besides Core Scientific CORZ, shares of other publicly traded Bitcoin miners, like Marathon Digital (MARA) and Riot Blockchain (RIOT), follow the same trend.

MARA’s value dropped from $27.28 as of February 12 to $20.19 as of March 12. This represented a more than 35% decrease within the past 30 days. 

Similarly, RIOT plummeted from $15.92 on February 12 to $11.62 on March 12, reflecting a 37% decline within the period.

Several analysts believe that certain reasons could have contributed to the decline in the stock prices of BTC mining firms. They speculate investors could be skeptical about releasing their funds to mining companies considering the upcoming Bitcoin halving event.

However, some experts in the field have adopted a bullish sentiment on Core Scientific amid Bitcoin’s impressive price rallies. On January 25, HC Wainright, a capital market firm, changed its CORZ rating from “Neutral” to “Buy.” Similarly, analysts on MarketBeat have changed their CORZ rating to “Buy.”

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