Core Scientific Cites Crypto Market Turmoil in Lowering Its Growth Outlook

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Core Scientific, which currently has the highest hashrate among publicly traded bitcoin miners, just lowered its 2022 outlook, saying it would take the more conservative approach to growing the company because of market volatility.

In announcing disappointing first quarter earnings earlier on Thursday, the miner lowered its 2022 hashrate guidance to 30-32 exahash per second (EH/s) from its previous outlook of 40-42 EH/s, and now sees total power of about 1 gigawatt versus previous guidance of between 1.2 and 1.3 gigawatt (GW).

“We would characterize it as an appropriately conservative approach to growth, making sure we have the money to do what we say we're going to do,” CEO Mike Levitt said during the earnings conference call. “We remained very comfortable with our ability to internally fund our growth to approximately one gigawatt,” he added.

Levitt noted that his company could still decide to expand beyond the one gigawatt of power capacity, but would only do so if capital is available on “compelling terms,” either from the markets or through pre-funding by its customers.

“Despite a very challenging environment, we are sufficiently capitalized to achieve our 2022 objectives, and we have the ability to exceed those objectives, should it make sense to do so,” Levitt said during the call.

Levitt also said that the company is not interested in issuing equity at these market conditions and may sell some of its mined coins this year. “We will continue to do everything in our power to maintain a stable strong financial position and continue to invest in our growth,” Levitt said. “We currently hold over 10,000 self mined Bitcoins. That said, we have sold digital assets this year and we expect that will continue to be the case,” he added.

The comments align with peers such as Riot which has already started selling its mined bitcoins and Marathon, which recently said it might start to do so.

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