[Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, with accompanying notes detailing accounting policies and key financial items [Organization and Description of Business](index=12&type=section&id=1%20%E2%80%94%20Organization%20and%20Description%20of%20Business) Core Scientific, a digital infrastructure company, is transitioning its ten data centers from bitcoin mining to high-density colocation for AI workloads, operating through three segments - The company operates in three segments: Digital Asset Self-Mining, Digital Asset Hosted Mining, and Colocation (for GPU-based HPC operations)[26](index=26&type=chunk) - A significant portion of the company's ten data centers are being converted to support AI-related workloads under new agreements with CoreWeave, Inc., a provider of high-performance computing (HPC)[24](index=24&type=chunk)[25](index=25&type=chunk) - The company emerged from Chapter 11 bankruptcy on January 23, 2024, upon the effectiveness of its Plan of Reorganization[28](index=28&type=chunk) [Summary of Significant Accounting Policies](index=12&type=section&id=2%20%E2%80%94%20Summary%20of%20Significant%20Accounting%20Policies) This note details significant accounting policies, including GAAP basis, estimates, early adoption of ASU 2023-08 for fair value measurement of digital assets, and distinct revenue recognition methods for its three segments - The company elected to early adopt ASU 2023-08, effective January 1, 2024, which requires measuring digital assets at fair value each reporting period with changes recognized in net income[36](index=36&type=chunk)[37](index=37&type=chunk) - Revenue from the Colocation segment is accounted for under ASC Topic 842 as an operating lease, as the lease components are predominant in the licensing arrangements[57](index=57&type=chunk) - Digital asset self-mining revenue is recognized based on non-cash compensation from third-party mining pool operators, measured at the spot rate for Bitcoin when control is transferred[45](index=45&type=chunk)[50](index=50&type=chunk) [Property, Plant, and Equipment](index=21&type=section&id=3%20%E2%80%94%20Property%2C%20Plant%2C%20and%20Equipment) Net property, plant, and equipment increased to **$650.3 million** by March 31, 2025, primarily due to a significant rise in construction in progress Property, Plant, and Equipment, Net (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total PP&E (Gross) | $780,711 | $779,408 | | Less: accumulated depreciation | $407,184 | $385,922 | | Subtotal | $373,527 | $393,486 | | Add: Construction in progress | $276,764 | $162,856 | | **Property, plant and equipment, net** | **$650,291** | **$556,342** | [Commitments and Contingencies](index=27&type=section&id=8%20%E2%80%94%20Commitments%20and%20Contingencies) The company has **$1.25 billion** in capital expenditure commitments for data center conversion and is involved in various legal proceedings, some resolved post-bankruptcy - The company is contractually committed to approximately **$1.25 billion** of capital expenditures for infrastructure modifications and equipment related to its high-density colocation services, expected to occur within the next 12 to 24 months[98](index=98&type=chunk) - The company is subject to several legal proceedings, including a purported shareholder class action (Pang) and contract claims (GEM), some of which have been resolved post-bankruptcy emergence through stock issuance[100](index=100&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk) [Segment Reporting](index=33&type=section&id=12%20%E2%80%94%20Segment%20Reporting) The company reports across three segments: Self-Mining, Hosted Mining, and Colocation, with Q1 2025 gross profits of **$6.0 million**, **$1.7 million**, and **$0.5 million** respectively Segment Gross Profit for Q1 2025 vs Q1 2024 (in thousands) | Segment | Q1 2025 Gross Profit | Q1 2025 Gross Margin | Q1 2024 Gross Profit | Q1 2024 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | Digital Asset Self-Mining | $6,009 | 9% | $68,395 | 46% | | Digital Asset Hosted Mining | $1,737 | 46% | $9,251 | 32% | | Colocation | $467 | 5% | $— | —% | | **Consolidated** | **$8,213** | **10%** | **$77,646** | **43%** | - For Q1 2025, **84%** of the company's total revenue was generated from digital asset mining of bitcoin from a single customer (a mining pool operator)[135](index=135&type=chunk) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,625,371** | **$1,598,815** | | Cash and cash equivalents | $697,942 | $836,197 | | Digital assets | $80,646 | $23,893 | | Property, plant and equipment, net | $650,291 | $556,342 | | **Total Liabilities** | **$1,806,878** | **$2,418,995** | | Warrant liabilities | $421,902 | $1,097,285 | | Convertible and other notes payable, net | $1,071,843 | $1,073,990 | | **Total Stockholders' Deficit** | **$(181,507)** | **$(820,180)** | Condensed Consolidated Statements of Operations Highlights (Unaudited) | Account | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenue** | **$79,525** | **$179,291** | | Gross profit | $8,213 | $77,646 | | Operating (loss) income | $(42,596) | $55,227 | | Change in fair value of warrants and contingent value rights | $(621,464) | $(60,114) | | **Net income** | **$580,693** | **$210,691** | | **Diluted EPS** | **$1.25** | **$0.78** | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(40,599) | $22,174 | | Net cash used in investing activities | $(93,458) | $(31,970) | | Net cash (used in) provided by financing activities | $(4,198) | $54,363 | | **Net (decrease) increase in cash** | **$(138,255)** | **$44,567** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift from bitcoin mining to HPC/AI colocation, analyzing Q1 2025 financial results, liquidity, and key operating metrics, including the impact of bitcoin price volatility and the halving event - The company is undergoing a significant strategic transition from bitcoin mining to providing high-density colocation services for HPC and AI workloads, which it believes will offer more consistent, dollar-based revenue and lower risk[143](index=143&type=chunk)[151](index=151&type=chunk) Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Self-Mining Hash rate (EH/s) | 18.1 | 19.3 | | Total cost to self-mine one bitcoin | $56,627 | $18,853 | | Total cash-based hash cost ($/TH) | $0.032 | $0.033 | | Adjusted EBITDA (in millions) | $(6.1) | $88.0 | - The April 2024 bitcoin 'halving' event, which reduced block rewards by **50%**, was a primary driver of the **55%** decrease in self-mining revenue year-over-year[174](index=174&type=chunk)[226](index=226&type=chunk) - Total revenue for Q1 2025 decreased by **56%** to **$79.5 million** from **$179.3 million** in Q1 2024, primarily due to lower self-mining and hosted mining revenue, partially offset by **$8.6 million** in new revenue from the Colocation segment[222](index=222&type=chunk) [Overview](index=38&type=section&id=Overview) Core Scientific is strategically transitioning from bitcoin mining to high-density colocation for HPC and AI, reporting **$79.5 million** in Q1 2025 revenue and **$580.7 million** net income - The company is strategically transitioning from bitcoin mining to high-density colocation services for HPC and AI customers[142](index=142&type=chunk)[143](index=143&type=chunk) Q1 2025 Financial Snapshot (in millions) | Metric | Q1 2025 | | :--- | :--- | | Total Revenue | $79.5 | | Operating Loss | $(42.6) | | Net Income | $580.7 | | Adjusted EBITDA | $(6.1) | [Results of Operations](index=55&type=section&id=Results%20of%20Operations) Total revenue decreased **56%** to **$79.5 million** in Q1 2025, primarily due to reduced self-mining and hosted mining, while net income increased to **$580.7 million** due to a non-operating gain from warrant fair value changes - Total revenue decreased by **$99.8 million** (**56%**) YoY, driven by an **$82.8 million** drop in self-mining revenue and a **$25.6 million** drop in hosted mining revenue[222](index=222&type=chunk) - The decrease in self-mining revenue was caused by a **75%** decrease in bitcoin mined, resulting from the April 2024 halving, fewer deployed miners, and increased network difficulty, partially offset by a **74%** increase in the average price of bitcoin[223](index=223&type=chunk)[226](index=226&type=chunk) - Total non-operating income increased by **$467.8 million**, primarily due to a **$621.5 million** gain from the change in fair value of warrants and contingent value rights, which was driven by a decrease in the company's stock price[232](index=232&type=chunk)[235](index=235&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$698.7 million** in cash and equivalents, asserting sufficient liquidity for the next twelve months, despite using **$40.6 million** in operating cash and **$93.5 million** in investing activities in Q1 2025 - The company believes its operating cash flows and existing cash balance of **$698.7 million** are sufficient to satisfy cash requirements for the next twelve months and beyond[245](index=245&type=chunk)[247](index=247&type=chunk) - Net cash used in operating activities was **$40.6 million** in Q1 2025, compared to **$22.2 million** provided in Q1 2024, primarily due to a decrease in income before non-cash adjustments and changes in bitcoin holdings[251](index=251&type=chunk) - Purchases of property, plant, and equipment totaled **$88.4 million** in Q1 2025, with **$59.5 million** related to the Colocation segment, partially funded by **$42.0 million** in prepaid base license fees from a customer[252](index=252&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are bitcoin price volatility and electricity costs, holding **977 bitcoin** valued at **$80.6 million** as of March 31, 2025, with a 10% bitcoin price change impacting net income by **$6.7 million** - The company's primary market risks are the price of bitcoin and electricity commodity prices[261](index=261&type=chunk)[264](index=264&type=chunk) - As of March 31, 2025, the company held **977 bitcoin** with a carrying value of **$80.6 million**[261](index=261&type=chunk) - A hypothetical **10%** increase or decrease in the price of bitcoin produced during Q1 2025 would have changed net income by approximately **$6.7 million**[263](index=263&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[268](index=268&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[269](index=269&type=chunk) [Part II. Other Information](index=65&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other disclosures, including executive trading plans and exhibit listings [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings and refers to Note 8 of the financial statements for details on material pending matters - The company is involved in lawsuits and other contingencies in the ordinary course of business and refers to Note 8 of the financial statements for details on material proceedings[271](index=271&type=chunk) [Risk Factors](index=65&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Annual Report on Form 10-K for a comprehensive discussion of risk factors, clarifying that 'HPC Hosting' is now termed 'Colocation' - For a full discussion of risk factors, the report refers to Part I, Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2024[273](index=273&type=chunk) - The company clarifies that the term 'HPC Hosting' used in prior reports is now referred to as the 'Colocation' segment[274](index=274&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company issued **0.1 million** shares from Tranche 1 Warrants for **$0.5 million** and **3.4 million** shares from Tranche 2 Warrants with minimal proceeds, relying on Bankruptcy Code Section 1145 - During Q1 2025, **0.1 million** shares of New Common Stock were issued upon exercise of Tranche 1 Warrants, resulting in **$0.5 million** in cash proceeds[275](index=275&type=chunk) - During Q1 2025, **3.4 million** shares of New Common Stock were issued upon exercise of Tranche 2 Warrants, resulting in minimal cash proceeds[276](index=276&type=chunk) [Defaults Upon Senior Securities](index=67&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on its senior securities during the period - None[277](index=277&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[278](index=278&type=chunk) [Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The company reported no other significant information, but disclosed that an EVP adopted a Rule 10b5-1 trading plan to sell approximately **600,000** shares on March 4, 2025 - On March 4, 2025, Todd DuChene, EVP, Chief Legal and Administrative Officer, adopted a Rule 10b5-1 trading plan to sell an aggregate of approximately **600,000** shares[280](index=280&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including CEO and CFO certifications and interactive data files - The report includes a list of filed exhibits, such as CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files[281](index=281&type=chunk)

Business Transformation & Strategy - Core Scientific is transitioning from bitcoin mining to a high-density colocation provider[11] - The company aims to build a 1.3 GW+ billable power capacity data center platform by 2027[15] - Diversifying customer base and expanding colocation capacity through organic growth and M&A are key catalysts for 2025[42] Colocation Contracts & Revenue - Core Scientific has signed colocation contracts with potential revenue exceeding $10 Billion over 12 years[7, 12] - CoreWeave contracts contribute to approximately $850 Million in average annual run rate revenue[22] - The company anticipates a 75% to 80% profit margin from CoreWeave colocation contracts[22] Financial Performance & Debt - Q1 2025 colocation revenue was $8.573 Million, a 100% increase compared to Q1 2024[55] - Total debt as of March 31, 2025, was $1.119 Billion[46] - The company reported a net income of $580.693 Million for the three months ended March 31, 2025[55]

Exhibit 99.1 Core Scientific Announces Fiscal First Quarter 2025 Results First Quarter 2025 Highlights AUSTIN, Texas, May 7, 2025 - Core Scientific, Inc. (NASDAQ: CORZ), a leader in digital infrastructure for high-density colocation services and digital asset mining, today announced financial results for the fiscal first quarter of 2025. Net income was $580.7 million, as compared to $210.7 million for the same period in 2024. Total revenue was $79.5 million, as compared to $179.3 million for the same period ...

Group 1: Core Scientific, Inc. (CORZ) - Core Scientific's shares increased by 5.3% to close at $8.42, following a period of 16.6% loss over the past four weeks, indicating a strong trading volume [1] - The company is benefiting from securing long-term high-performance computing (HPC) contracts, expanding infrastructure capacity, and diversifying its customer base, positioning it for strong growth and higher profit margins in the future [1] - The consensus EPS estimate for the upcoming quarter is a loss of $0.10 per share, reflecting a year-over-year change of -152.6%, with expected revenues of $99.39 million, down 44.6% from the previous year [2] Group 2: Industry Insights - Core Scientific is part of the Zacks Financial - Miscellaneous Services industry, which includes WisdomTree, Inc. (WT), whose shares increased by 0.3% to $9.13, with a 5.1% return over the past month [3] - WisdomTree's consensus EPS estimate for the upcoming report is $0.16, representing a year-over-year change of +33.3%, with the estimate remaining unchanged over the past month [4]

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 ...