American blockchain hosting provider Core Scientific posted a net loss of $466.2 million in January-March 2022 against a net profit of $6.8 million a year earlier.

The company attributed the deterioration in financial results to the following factors:

• A reassessment of the fair value of $386 million of convertible notes;
• impairment of digital assets of $54 million;
• $39.4 million increase in general operating expenses;
• It pays $42.4 million in income tax.

First-quarter revenue was $192.5 million, compared to $54.2 million in the same period last year.

The volume of self-issued bitcoin in the first three months increased to 3202 BTC, which is 15.5 times higher than in the first quarter of 2021.

Core Scientific CEO Mike Levitt noted at a conference with analysts that the scale of the business is well positioned to meet its growth targets.

Previously, the company aimed to increase the hash rate to 40-42 EH/s by the end of 2022, but eventually set the target to 30-32 EH/s. Levitt allowed the index to be revised upwards if conditions in the capital market improve.

In the current environment, Core Scientific benefits from monetizing hosting, owning its own infrastructure, and “mining the largest number of digital assets in North America,” according to the top executive.

Levitt calculated that the volume of the first cryptocurrency ever issued and on the company’s balance sheet exceeded 10,000 BTC.

“I am often asked if we are going to sell our bitcoins. We believe wholeheartedly in the future and […] We continue to invest in our growth. Nevertheless, we sold digital assets this year and we do not exclude that we will take this step in the future.”, – Announced.

According to CEO comments, Core Scientific takes a conservative approach. Any potential growth beyond current estimates will depend on whether the company has the right kind of capital and equipment prices.

In January 2022, Core Scientific went public through a reverse merger. SPAC. Its shares are traded on the Nasdaq stock exchange under the code CORZ.

Recall that since April 18, the company began to report the volume of mined cryptocurrency on a daily basis.