Core Insights - Chain Reaction has launched the 3nm EL3CTRUM A31 ASIC, targeting sub-10 J/TH for high-efficiency Bitcoin mining operations, setting a new benchmark for modularity and customizability [1][2] - The company is also developing 2nm ASIC technology to enhance performance and energy efficiency for future Bitcoin mining [2][3] Product Features - The EL3CTRUM A31 ASIC architecture allows data center operators to optimize their infrastructure, reduce energy costs, and maintain profitability in changing mining conditions [2] - Key innovations include best-in-class efficiency, customer-centric optimization tailored to regional power strategies, and modular scalability for customized solutions [8] Strategic Partnerships - Chain Reaction emphasizes customer partnerships to ensure continuous product advancement and supply chain reliability, collaborating with industry leaders [4][5] - The company is expanding its collaboration with Core Scientific, focusing on ASIC innovation and privacy-enhanced 3PU™ technology for encrypted AI computing [5][6] Industry Positioning - Chain Reaction is positioned as a leader in high-performance computing through specialized ASIC solutions, with a commitment to advancing mining efficiency and scalability [7] - The company leverages advanced semiconductor technologies, ensuring early access to innovations below 2nm [9]

Core Scientific's (NASDAQ: CORZ ) transformation from a struggling bitcoin miner to a key AI-Infrastructure marks one of the most significant strategic pivots in the industry. By leveraging its existing power capacity and data centerWe are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by deep diving into valuations, key business drivers, risk/reward, and different futu ...

Core Insights - The article discusses the investment position of the analyst in CORZ shares, indicating a beneficial long position through various means such as stock ownership and derivatives [1]. Group 1 - The analyst expresses personal opinions regarding the investment without receiving compensation from any company mentioned [1]. - There is an emphasis on the independence of the analyst's views, which may not reflect the overall stance of Seeking Alpha [2]. - The article clarifies that Seeking Alpha does not provide licensed investment advice or recommendations [2].

Core Scientific, Inc. (NASDAQ:CORZ) Q4 2024 Earnings Call Transcript February 26, 2025 4:30 PM ET Company Participants Jon Charbonneau - Vice President, Investor Relations Adam Sullivan - CEO, President & Director Denise Sterling - Chief Financial Officer Conference Call Participants Darren Aftahi - Roth MKM Jon Petersen - Jefferies Joe Flynn - Compass Point Research Brett Knoblauch - Cantor Fitzgerald Greg Lewis - BTIG George Sutton - Craig Hallum Stephen Glagola - JonesTrading John Todaro - Needham & Comp ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40046 Core Scientific, Inc. (Exact name of registrant as specified in its charter) Delaware 86-1243837 (State or ot ...

Core Scientific, Inc. (CORZ) came out with a quarterly loss of $0.01 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 90%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced a loss of $0.13, delivering a surprise of -18.18%.Over the last four quarters, the company has surp ...

Fourth Quarter Fiscal 2024 Earnings Presentation Adam Sullivan, CEO Denise Sterling, CFO February 26, 2025 FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's abil ...

Financial Performance - Net loss for Q4 2024 was $265.5 million, compared to a net loss of $195.7 million in Q4 2023, primarily due to a $224.7 million non-cash mark-to-market adjustment[2][9] - Total revenue for Q4 2024 was $94.9 million, down from $141.9 million in Q4 2023, with digital asset self-mining revenue at $79.9 million[2][4] - Adjusted EBITDA for Q4 2024 was $13.3 million, a decrease of $43.4 million from $56.7 million in Q4 2023[2][10] - Operating loss for Q4 2024 was $39.8 million, a decrease of $43.7 million compared to an operating income of $3.9 million in Q4 2023[2][8] - Net loss for the full fiscal year 2024 was $1.3 billion, a decrease of $1.1 billion from the previous year, primarily due to a $1.4 billion non-cash mark-to-market adjustment[18] - Consolidated total revenue for the year ended December 31, 2024, was $510.7 million, a slight increase from $502.4 million in 2023[35] Revenue Breakdown - Digital asset self-mining revenue was $79.9 million, down 29% from $112.2 million year-over-year[33] - Digital asset hosted mining revenue from customers fell to $6.5 million in Q4 2024, down 78% from $29.8 million in Q4 2023[35] - Digital asset self-mining gross profit for the full fiscal year 2024 was $94.4 million, with a gross margin of 23%, compared to $98.6 million and 25% in the prior year[14] - Consolidated gross profit for Q4 2024 was $4.8 million, down 88% from $39.3 million in Q4 2023, resulting in a gross margin of 5%[35] Costs and Expenses - The average cash cost to self-mine one bitcoin was $51,035, with 974 self-mined bitcoins earned in Q4 2024[3][4] - Operating expenses rose to $43.6 million in Q4 2024, up from $30.0 million in Q4 2023[33] - Research and development expenses were $5.0 million, compared to $1.9 million in the same quarter last year[33] - The total cost of digital asset self-mining for the year ended December 31, 2024, was $314.3 million, an increase from $291.7 million in 2023[35] - Employee compensation in the digital asset self-mining segment increased to $10.4 million in Q4 2024, up from $4.4 million in Q4 2023[35] Assets and Liabilities - Total current assets increased significantly to $904.0 million from $97.0 million in the previous year[31] - Cash and cash equivalents increased to $836.2 million from $50.4 million year-over-year[31] - Total liabilities increased to $2.4 billion, up from $1.3 billion in the previous year[31] - The company has a substantial accumulated deficit of $3.7 billion as of December 31, 2024[31] Strategic Developments - The company increased its total portfolio capacity to 1,300 MW of powered infrastructure by year-end 2024 through strategic site acquisitions and expansions[3] - The company secured $625 million through a convertible note offering with favorable 0% interest terms, strengthening its balance sheet[3] - The HPC hosting segment generated $8.5 million in revenue for Q4 2024, with a gross profit of $744, marking the first revenue reported in this segment[35]

Group 1 - Core Scientific (NASDAQ: CORZ) has appreciated over 60% since August last year, indicating strong market performance [1] - The company's heavy reliance on Bitcoin mining introduces volatility risks, which are critical for investors to consider [1] - The analyst emphasizes a moderate approach to investment, focusing on capital preservation and strategic direction [1] Group 2 - The analyst has a diverse background in IT and investment, with 25 years of experience, which informs their insights [1] - The research includes themes such as automated supply chains, Generative AI, and the deflationary nature of software, showcasing a broad industry focus [1] - The analyst has experienced significant losses during the 2008/2009 financial crisis, leading to a more cautious investment strategy [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $95 million, with a gross loss of $0.2 million and an operating loss of $41 million, reflecting lower post-halving hash prices and higher operating expenses [17][18] - The net loss for Q3 2024 was $455 million, significantly higher than the $41 million net loss in the same period last year, primarily due to a $408.5 million non-cash mark-to-market adjustment [31][32] - Adjusted EBITDA for Q3 2024 was $10 million, a year-over-year decrease of $18 million [32] Business Line Data and Key Metrics Changes - Digital asset self-mining revenue decreased by 18% year-over-year to $68.1 million, driven by a 62% decrease in the number of Bitcoin earned due to the April halving [21][22] - HPC hosting revenue was $10.3 million, exceeding costs of revenue by $1.3 million, resulting in a GAAP gross margin of 13% [24] - Digital asset self-mining segment gross margin was negative 9%, while HPC hosting had a non-GAAP gross margin of 27% when excluding direct pass-through power costs [29][26] Market Data and Key Metrics Changes - The company operated approximately 175,000 miners in its self-mining fleet, with a self-mining to hosted mining mix of 89% to 11% [33] - Power costs decreased to $0.038 per kilowatt hour from $0.045 per kilowatt hour year-over-year [30] Company Strategy and Development Direction - The company is focusing on expanding its HPC hosting business, with plans to secure additional power from local grid partners and acquire new sites [48][49] - The company aims to convert existing sites to HPC hosting, targeting a total HPC hosting capacity of over 1 gigawatt by the end of 2027 [52] - The company has secured a contract with CoreWeave valued at up to $8.7 billion over 12 years, indicating strong demand for high-powered data center infrastructure [59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about favorable market fundamentals driving strong demand for data center infrastructure [9] - The company anticipates improvements in margins over time as it increases critical IT load without incurring additional operating costs [28] - Management highlighted the potential for significant value creation in HPC hosting and the Bitcoin mining business as market conditions improve [60] Other Important Information - The company completed a $460 million convertible note offering, which significantly improved its capital structure and eliminated previous debt restrictions [14][35] - The company expects to begin delivery of powered infrastructure for HPC hosting by the end of the first half of 2025 [54] Q&A Session Summary Question: Are there conversations with potential customers for the 100 megawatts allocated to HPC? - Management confirmed that conversations began earlier in the year and are ongoing, indicating a competitive process for the capacity [63] Question: What drove the higher-than-expected HPC revenue? - The CFO explained that a one-time adjustment for early delivery contributed to the higher revenue [66] Question: What is the plan for construction and leasing for the 100-megawatt transition? - Management stated that they aim to secure a client and contract before incurring capital expenditures [68] Question: Any updates on expanding power capacity at existing HPC sites? - Management indicated potential for an additional 300 megawatts across existing sites, with ongoing discussions [73] Question: Thoughts on the implications of the Presidential Election for the Bitcoin mining industry? - Management noted that strong support for Bitcoin and energy production from political figures could serve as tailwinds for the industry [75] Question: What are the potential deal structures for new sites? - Management indicated a focus on single-tenant buildings and build-to-suit arrangements for new clients [78] Question: How has the market changed regarding rental rates since the CoreWeave deal? - Management noted that lease rates have increased due to strong demand and clients covering some capital expenditures [82] Question: What is the competitive landscape for new sites? - Management highlighted strong demand and ongoing discussions with multiple clients, indicating a competitive process [88] Question: Will the new block chips require significant retrofitting of existing facilities? - Management stated that the new block chips will primarily focus on refreshing the existing fleet without significant infrastructure changes [100] Question: What is the status of supply chain issues? - Management expressed confidence in overcoming supply chain challenges and securing necessary components [108]