CORZ

1. Entity Frequency and Category Focus

Growing emphasis on high-density compute and municipal partnerships through mid-2025 shifted sharply in late October 2025 with termination of the CoreWeave merger; focus now re-centers on standalone execution, contract durability, and liquidity.

Increase in Organizations

CoreWeave, Inc.

• Recurring across most 2025 filings/releases as the primary HPC/AI colocation customer and (pre-10/30) acquirer; funded $196.4 million of Core Scientific’s Q3 2025 capex under colocation agreements; associated with projected multi-year revenue (e.g., prior disclosures up to $10.2 billion over 12 years; approx. $725 million/year once fully online).Shift observed: After 2025-10-30, the merger is terminated. Strategic emphasis shifts from acquisition integration to preserving/expanding colocation revenue and capex funding under existing service agreements (durability and terms now a key risk focus).

Denton City Council / Denton Municipal Electric

• Lease amendments expanded land/power access (to 394 MW) to enable HPC buildout; followed by a $1.2 billion Denton expansion contract (announced 2025-02-26).Shift observed: Municipal partnerships underpin HPC scale-up; Denton remains a flagship HPC site.

Port Muskogee / City of Muskogee

• Broke ground on 100 MW HPC data center; tied to multi-year contract value (part of the up to $8.7 billion total contract value over 12 years) and regional economic benefits.Shift observed: Geographic diversification of HPC footprint beyond Texas.

AUBix / Auburn University / Alabama Department of Commerce

• Announced Auburn, AL HPC facility: $135 million initial and $400 million total investment; 16 MW capacity.Shift observed: Added institutional and state-level relationships to support HPC platform growth.

U.S. Securities and Exchange Commission (SEC) / Form 10-Q / 10-K

• High frequency in 2025 reflecting active capital structure management and detailed quarterly disclosures.Shift observed: Elevated disclosure around non-cash fair value items, liquidity, and contract capital intensity.

Increase in Products and Technologies

High-Density Colocation (HDC) (formerly HPC hosting)

• HDC revenue up to $15.0 million in Q3 2025 (from $10.3 million YoY), despite overall revenue pressure.Shift observed: Sustained pivot toward HPC/AI colocation as a counterweight to volatile bitcoin self-mining.

GPU Supercomputers / NVIDIA GPU Operations / AI Infrastructure

• Featured in Denton and Muskogee expansions; AI Hyperscaler-centered model referenced in CoreWeave context.Shift observed: Strategic alignment to enterprise AI/HPC workloads to improve revenue quality and duration.

Locations with Rising Emphasis

Denton, Texas

• Central to HPC expansion: 70 MW additional contracted power; total 260 MW critical IT load post-expansion.Shift observed: Continues as a core node of HDC/AI capacity.

Auburn, Alabama

• New HPC site with economic development backing.Shift observed: Expands HDC geography and institutional ties.

People

Limited mentions in late 2025 releases

• Earlier 2025 saw leadership changes: new CFO Jim Nygaard, Board addition Elizabeth Crain, CMO Scott Brueggeman.Shift observed: Governance upgrades support capital markets credibility; fewer named individuals in latest disclosures.

2. New vs. Receding Entities

New Entities

AUBix / Auburn University / Alabama Department of Commerce

• New Alabama HPC facility partnership; $400 million total project; 16 MW capacity.Shift observed: Broadens institutional support and region-specific incentives for HPC growth.

Port Muskogee / City of Muskogee

• 100 MW HPC data center groundbreaking; meaningful local economic impact.Shift observed: Adds capacity and contract optionality; diversifies beyond Texas.

Denton City Council

• Lease amendments enabled power/land scale-up (to 394 MW).Shift observed: Municipal alignment accelerates HPC delivery.

Jim Nygaard (CFO) / Elizabeth Crain (Director, Audit Chair) / Scott Brueggeman (CMO)

• Strengthened finance and go-to-market leadership.Shift observed: Supports investor relations, financial discipline, and brand building amid strategy pivot.

Receding Entities

“HPC hosting” (term) → High-Density Colocation (HDC)

• Terminology has standardized to HDC through 2025.Shift observed: Reflects repositioning of product language for AI/HPC enterprise market.

Hosted Mining (customer-owned bitcoin miners)

• Revenue down (e.g., Q3 2025 hosted mining revenue $8.7 million vs $16.9 million YoY).Shift observed: De-prioritized versus HDC and away from lower-margin volatility.

Block, Inc. (3 nm chips initiative)

• Mentioned earlier in 2025, not referenced in later-quarter releases.Shift observed: Less near-term emphasis; execution focus shifted to HDC buildouts.

3. Financial and Quantitative Shifts

Increased/Reduced Revenue Mix and Trend

Total Revenue

• Q1 2025: $79.5 million (vs $179.3 million prior-year).
• Q2 2025: $78.6 million (vs $141.1 million prior-year).
• Q3 2025: $81.1 million (vs $95.4 million prior-year).Shift observed: Down significantly YoY across 2025; modest stabilization in Q3. Mix shifting toward HDC as mining volumes contract.

Digital Asset Self-Mining Revenue

• Q3 2025: $57.4 million (vs $68.1 million YoY).Shift observed: Lower bitcoin production (post-halving; network effects) despite higher prices.

Digital Asset Hosted Mining Revenue

• Q3 2025: $8.7 million (vs $16.9 million YoY).Shift observed: Structural decline; less strategic emphasis.

High-Density Colocation (HDC) Revenue

• Q3 2025: $15.0 million (vs $10.3 million YoY).Shift observed: HDC partially offsets mining declines; validates AI/HPC pivot.

Profitability and Volatility

Net Income/Loss

• Q1 2025: $580.7 million net income (driven by non-cash fair value gains).
• Q2 2025: $(936.8) million net loss (non-cash fair value).
• Q3 2025: $(146.7) million net loss (vs $(455.3) million YoY).Shift observed: Large swings dominated by non-cash fair value adjustments; underlying operations remain pressured.

Adjusted EBITDA

• Q1 2025: $(6.1) million; Q2: $21.5 million; Q3: $(2.4) million (vs $10.1 million YoY in Q3).Shift observed: Mixed quarter-to-quarter; overall weaker vs 2024 comps.

Gross Profit

• Q3 2025: $3.9 million (vs a gross loss of $0.2 million YoY).Shift observed: Marginal improvement YoY in gross margin despite revenue declines.

Liquidity and Balance Sheet

Liquidity (Cash + Bitcoin)

• Q1 2025: $778.6 million
• Q2 2025: $754.1 million
• Q3 2025: $694.8 million (Cash $453.4 million; Bitcoin $241.4 million)Shift observed: Gradual decline through 2025 reflecting capex and operations; still robust vs capital needs but trending downward.

Ambiguity flagged

• 10-Q line items (e.g., cash $697,942, digital assets $80,646) appear to be reported in thousands; context suggests approximately $697.9 million cash and $80.6 million digital assets. Unit basis is not explicitly labeled in the NER extract.

Capital Expenditures and Funding

Capex

• Q1 2025 capex: just under $90 million; Q2: $121.3 million; Q3: $244.5 million (of which $196.4 million funded by CoreWeave via colocation agreements).
• Denton expansion requires $104 million Core Scientific capex; guideline $1.5 million/MW.Shift observed: Capex accelerated into HDC buildout; dependence on customer-funded capex (CoreWeave) is a material risk post-merger termination.

Bitcoin Production and Pricing

Production/Price

• Q3 2025: Bitcoin mined down 55% YoY; average bitcoin price up 88% YoY.
• Halving (2024-04-19) reduced rewards to 3.125 BTC per block.Shift observed: Price tailwinds insufficient to offset volume decline in self-mining economics.

Capital Structure

Convertible Senior Notes (0.00% due 2031)

• Issued $550 million (upsized from $500 million); initial conversion price $22.49; optional redemption after June 22, 2028; repurchase option December 15, 2027.Shift observed: Low-coupon capital supports buildout; potential dilution if stock appreciates past conversion.

4. Product/Technology Development

High-Density Colocation (HDC) / AI Infrastructure

• HDC revenue growth; multi-site GPU-centric buildouts (Denton, Muskogee, Auburn).Shift observed: Strategic pivot toward long-duration, contract-backed AI/HPC workloads to stabilize cash flows.

GPU Clusters / NVIDIA GPU Operations

• Core to customer demand (e.g., CoreWeave) and site expansions.Shift observed: Positions infrastructure for AI training/inference demand cycles.

Bitcoin Mining Stack (ASIC miners, Minder software)

• Operational metrics: ~19–20 EH/s total energized hash rate across early 2025; fleet efficiency ~24–25 J/TH.Shift observed: Maintained but de-emphasized vs HDC due to halving and network difficulty.

3 nm Chips Initiative (Block, Inc.)

• Cited early 2025; limited presence in later releases.Shift observed: Not a current execution focus relative to HDC deployments.

5. Relational Changes Between Entities

Merger Termination

Core Scientific – CoreWeave

• Merger agreement entered July 7, 2025; stockholder vote scheduled October 30, 2025; terminated October 30, 2025.Shift observed: Eliminates takeout premium; increases focus on standalone execution and contract enforceability. Funding under existing colocation agreements (e.g., Q3 capex support of $196.4 million) becomes a key diligence area for continuity.

Colocation/Funding Agreements

Core Scientific – CoreWeave

• Multi-year HDC contracts with projected revenues (up to $10.2 billion over 12 years, per prior disclosures); annualized colocation revenue guidance cited at $360 million (Q1 2025).Shift observed: CoreWeave remains the anchor customer; dependence risk heightened post-merger termination.

Municipal Leases and Site Enablement

Core Scientific – Denton City Council / Denton Municipal Electric

• Lease/power expansions (to 394 MW) enabled Denton HDC growth.Shift observed: Critical municipal alignment for accelerated AI infrastructure scale.

New Site Development

Core Scientific – Port Muskogee / City of Muskogee

• 100 MW HPC data center groundbreaking; local economic incentives.Shift observed: Adds capacity and diversifies site risk.

Core Scientific – AUBix / Auburn University / Alabama Department of Commerce

• Auburn HPC facility ($400 million total investment; 16 MW).Shift observed: Institutional partnerships support long-term HDC expansion.

Supply/Technology References

Core Scientific – Bitmain Technologies Limited

• Ongoing ASIC miner supplier noted in filings.Shift observed: Supports baseline bitcoin operations while HDC scales.

Core Scientific – Block, Inc.

• Early-2025 reference to 3 nm chips; limited follow-up.Shift observed: Secondary to HDC priorities.

Capital Markets and Governance

Core Scientific – Convertible Noteholders/Underwriters

• $550 million 0% notes due 2031, convertible at $22.49.Shift observed: Strengthened liquidity for buildouts; potential dilution over time.

Board/C-Suite Changes

Core Scientific – Jim Nygaard (CFO); Elizabeth Crain (Director/Audit Chair); Todd Becker (Departed Director); Scott Brueggeman (CMO)

• CFO transition effective March 17, 2025; audit oversight enhanced; marketing leadership added.Shift observed: Reinforces financial rigor and go-to-market in a capital-intensive pivot.