CORZ

1. Key Historical Highlights

• May 16, 2025: Core Scientific appointed Elizabeth Crain to its Board of Directors and Jordan Levy as Chairman of the Board.
• May 7, 2025: Transitioned focus from bitcoin mining to high-density colocation services for AI applications, announcing a partnership with CoreWeave for 70 MW infrastructure.
• May 7, 2025: Reported $79.5 million in Q1 revenue, a 56% decrease from the previous year, but net income increased significantly due to changes in fair value of warrants.
• April 7, 2025: Produced 247 self-mined Bitcoin in March, totaling 718 Bitcoin year-to-date.
• March 3, 2025: Appointed Jim Nygaard as CFO, focusing on corporate finance and M&A.
• February 27, 2025: Emerged from bankruptcy in January 2024 and shifted focus to HPC hosting services.
• January 27, 2025: Announced a $550 million offering of convertible senior notes, increasing from a previously announced $500 million.
• January 23, 2025: Successfully completed reorganization under Chapter 11, reducing debt by $400 million.
• December 5, 2024: Announced $550 million convertible senior notes offering, with proceeds for corporate purposes.
• November 20, 2024: Approved lease amendments with the City of Denton for HPC expansion.
• October 22, 2024: CoreWeave exercised its final option for 120 MW of digital infrastructure, totaling $8.7 billion in projected revenue.
• August 14, 2024: Increased offering size of convertible senior notes to $400 million.
• August 7, 2024: Reported $141.1 million in Q2 revenue, with a net loss of $804.9 million.
• July 8, 2024: Announced mandatory conversion of secured convertible notes, issuing approximately 45 million shares.
• June 25, 2024: Announced a new contract with CoreWeave for 70 MW of additional infrastructure, projected to add $1.225 billion in revenue.
• June 3, 2024: Signed contracts with CoreWeave for 200 MW of infrastructure, projected to generate over $3.5 billion in revenue.
• March 6, 2024: Entered a contract with CoreWeave for 16 MW of infrastructure, with potential revenue of over $100 million.
• January 23, 2024: Emerged from Chapter 11 with a strengthened balance sheet and a focus on growth.

2. Financial Performance Overview

Revenue Growth

Core Scientific's revenue has experienced fluctuations due to strategic shifts and market conditions:

• Q1 2025: Revenue was $79.5 million, a 56% decrease from the same period in 2024.
• FY 2024: Total revenue was $510.7 million, slightly up from $502.4 million in 2023.
• Q4 2024: Revenue was $94.9 million, down 33% year-over-year.

Profit Margins

The company's profitability has been impacted by restructuring and strategic shifts:

• Q1 2025: Operating loss of $42.6 million, but net income increased significantly due to changes in fair value of warrants.
• FY 2024: Net loss of $1.32 billion, compared to $246.5 million in 2023.

Expense Management

• Successfully emerged from Chapter 11, reducing debt by approximately $1 billion.
• Convertible notes offerings have been used to repay high-interest debt and fund strategic initiatives.

Significant Financial Events

• Convertible Notes Offering: Raised $550 million in January 2025 to strengthen the balance sheet.
• Debt Reduction: Reduced debt by $400 million through conversion to equity as part of the reorganization plan.

3. Management Effectiveness

Strategic Decision-Making

• Transitioned business focus from bitcoin mining to high-density colocation services for AI workloads.
• Formed strategic partnerships with CoreWeave to expand HPC hosting capacity, securing long-term contracts.
• Successfully navigated Chapter 11 reorganization, emerging with a strengthened balance sheet.

Capital Allocation

• Allocated capital towards expanding HPC infrastructure and reducing high-interest debt.
• Invested in new infrastructure and technology to support strategic shifts and enhance operational efficiency.

4. Key Quotes from Management

• "The global settlement removes key hurdles to our anticipated emergence from Chapter 11 in January." - Adam Sullivan, CEO, Core Scientific (December 21, 2023)
• "Our recent convertible note issue represents another key step in our commitment to strengthen our balance sheet and position Core Scientific for future growth." - Adam Sullivan, CEO, Core Scientific (August 20, 2024)
• "We believe we’re in any one of this transformation, especially when considering that many of our enterprises are just beginning to plan their AI strategies." - Adam Sullivan, CEO, Core Scientific (May 7, 2025)
• "We are thrilled to deepen our relationship with CoreWeave as we continue developing large-scale HPC projects that power advanced AI and other low-latency workloads." - Adam Sullivan, CEO, Core Scientific (February 26, 2025)
• "The oversubscription for our equity rights offering signals shareholders’ strong confidence in our business and strategy." - Adam Sullivan, CEO, Core Scientific (January 8, 2024)
• "We believe that using our existing infrastructure for high-density colocation services will provide more consistent dollar-based revenue and represents substantially less risk than our traditional hosted bitcoin mining or our bitcoin self-mining operations." - Management Team, Core Scientific (May 7, 2025)
• "We are capitalizing on one of the largest high-power digital infrastructure portfolios that we will continually seek to expand to deliver significant, resilient and sustainable value for our shareholders." - Adam Sullivan, CEO, Core Scientific (June 3, 2024)