Core Scientific, a large publicly traded cryptocurrency mining company in North America, announced its second quarter 2022 update and said it was laying off 10% of its workforce as it reported an $862 million quarterly loss due to impairments such as goodwill and digital assets.
The loss was primarily attributed to an $840 million impairment of goodwill, a $150.2 million impairment of digital assets, a $106.9 million increase in total operating expenses, and a $13.1 million loss on exchange or disposal of property, plant, and equipment.
Chief Financial Officer Denise Sterling said on the earnings call that the layoffs will not affect Core Scientific’s data centre operations staff.
In the second quarter, the company mined 3,365 bitcoins and had 1,959 bitcoins in reserves at the end of the quarter.
Core Scientific Sold 1,975 Bitcoins, more than it mined in July, to recover spending on the company’s costs.
On its balance sheet, revenue in the second quarter was $164 million, an increase of more than 115% from the previous year. The revenue growth benefited from the growth of digital asset mining revenue and custody revenue.
The company’s escrow revenue generated $38.9 million due to onboarding new clients and executing new affiliate escrow contracts for deployed miners.
During July, the company signed hosting agreements with customers for a total of 75MW. As of July 31, 2022, Core Scientific provides data centre hosting services and technical and operational support for approximately 86,000 customer-owned ASIC servers.
Core Scientific said thanks to an increase in self-mining hash rate, from 0.45 EH/s to 10.3 EH/s, digital asset mining revenue was $109.8 million, an increase of $99.1 million from the previous $10.8 million, an increase of 920% up to $99.1 million.
Image source: Shutterstock