Core Scientific Revenue Climbs to $232.9 Million on Colocation Growth

Core Scientific’s third-quarter revenue rose to $232.9 million as colocation sales reached $215 million, making the business the main contributor to the company’s higher revenue. Total revenue was $164 million in the second quarter and $81 million in the same quarter last year.

Colocation revenue increased from about $137 million in the second quarter and $15 million a year earlier. The company had 485 megawatts of colocation capacity under billing as of Sept. 30, compared with 395 megawatts at the end of June. That capacity represented more than $700 million in average annualized colocation revenue under generally accepted accounting principles.

Core Scientific was nearing completion of delivery under its first colocation agreement. Construction had also started under a second agreement spanning five campuses.

Gross profit was $123 million. Adjusted EBITDA reached about $134 million, up from $41 million in the second quarter, while the adjusted EBITDA margin rose to 57% from 25%.

Net income was $1.2 billion, following a $1.16 billion net loss in the previous quarter. The change was driven primarily by a noncash gain related to fair value changes in warrants and the company’s stock price.

Capital expenditures totaled $985 million. The company’s combined liquidity and debt-service reserve measure fell to $1.7 billion from $2.6 billion in the second quarter.