Core Scientific(US:CORZ)2025-05-07 21:32Financial Data and Key Metrics Changes - Total revenue for the quarter was $79.5 million, down 16% sequentially, with adjusted EBITDA at negative $6.1 million [34] - The sequential revenue decline was primarily driven by mining disconnections and relocations as the company continues converting sites to support high-density colocation [34] - The company earned 7.19 Bitcoin in the first quarter compared to 9.74 in the fourth quarter [34] Business Line Data and Key Metrics Changes - The company is focusing on high-density colocation, with significant progress made on contracts with CoreWeave, which are foundational to its growth strategy [9][18] - The company has a sales pipeline that includes a healthy mix of hyperscale and large enterprise customers, with several non-hyperscale deals ranging from 50 to 100 megawatts [12][13] Market Data and Key Metrics Changes - The demand for AI infrastructure is strong, with large enterprises beginning to roll out AI use cases, indicating a shift in market dynamics [7][11] - The company is positioned as a major supplier of infrastructure for AI workloads, capitalizing on the dislocation in the market where traditional data center providers struggle to meet density requirements [8] Company Strategy and Development Direction - The company aims to diversify its customer base, targeting to have CoreWeave represent less than 50% of its billable capacity by the end of 2028 [14] - The strategic priorities include executing on CoreWeave contracts, expanding data center capacity, and exploring M&A opportunities to enhance growth [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustained demand for high-density infrastructure, despite market noise suggesting a softening demand for AI infrastructure [11][28] - The company is focused on disciplined execution, sustainable growth, and long-term value creation, with a strong emphasis on capital allocation [29][30] Other Important Information - The company has approximately $780 million in liquidity, including cash, cash equivalents, and Bitcoin [30] - The structure of the CoreWeave contracts significantly reduces the company's capital burden and allows for strategic use of debt [19] Q&A Session Summary Question: Are there any credit enhancements built into your lease? - Management highlighted the excitement around the CoreWeave contracts and emphasized their value as a commercial counterparty [39] Question: Can you provide more color on the colocation CapEx and North Dakota plans? - Management indicated that preparations for the Grand Forks site are underway, with land acquisition to support future high-density colocation [41] Question: What has changed regarding large enterprise opportunities? - Management noted that large enterprises are developing their AI use cases, leading to increased demand and quicker timelines for contract finalization compared to hyperscalers [45][52] Question: How should we model the delivery of the eight megawatts and the additional 40 megawatts? - Management stated that the capacity will come online progressively over the next few months, making it difficult to provide exact dates [55] Question: What milestones should investors look for regarding construction timelines? - Management committed to providing monthly updates on construction progress and key project milestones [58] Question: How are conversations with customers changing due to tariffs? - Management acknowledged that tariffs may increase CapEx requirements, leading to higher lease rates, but noted that large enterprises are accelerating their demand [80] Question: What is the status of the three nanometer block ASICs? - Management confirmed that they expect to receive the machines in the second half of 2025 and believe they are insulated from tariff impacts [101]