CORZ

1. Key Historical Highlights

• May 16, 2025: Elizabeth Crain appointed to Core Scientific's Board of Directors, enhancing governance and strategic oversight.
• May 7, 2025: Transition from Bitcoin mining to high-density colocation services announced, focusing on AI applications.
• May 7, 2025: Agreement with CoreWeave for 70 MW infrastructure at Denton, TX, facility.
• May 7, 2025: Reported $580.7 million net income for Q1 2025, driven by changes in fair value of warrants and contingent value rights.
• March 17, 2025: Jim Nygaard appointed as CFO, bringing 30 years of investment banking experience.
• February 26, 2025: $1.2 billion expansion at Denton, TX, site announced, increasing HPC infrastructure.
• February 19, 2025: Expansion into Auburn, Alabama, with a new HPC facility.
• January 2025: Core Scientific emerges from Chapter 11 bankruptcy and begins trading on Nasdaq under the ticker symbol CORZ.
• December 2024: $550 million convertible senior notes offering announced, strengthening financial position.
• November 2024: Approval of lease amendments with the City of Denton to enable high-performance computing expansion.
• November 2024: Groundbreaking of a 100 MW HPC data center in Muskogee, OK.
• August 2024: Successfully raised $400 million through convertible senior notes, reducing debt and increasing financial flexibility.
• July 2024: Mandatory conversion of secured convertible notes, strengthening the balance sheet.
• June 2024: Secured HPC hosting contracts for 270 MW, with potential revenue exceeding $4.7 billion over 12 years.
• June 2024: Completed 72 MW expansion of Denton, Texas, data center.
• May 2024: Contract with CoreWeave for 70 MW additional infrastructure to support HPC operations.
• April 2024: Commenced HPC hosting operations at the 16 MW Austin data center.
• February 2024: Signed long-term contracts for 382 MW of HPC, representing potential revenue of $6.7 billion over 12 years.

2. Financial Performance Overview

Revenue Growth

• Q1 2025: Total revenue of $79.5 million, a decrease of 56% from Q1 2024 due to transition from Bitcoin mining to colocation services.
• Fiscal Year 2024: Total revenue of $510.7 million, a slight increase from $502.4 million in 2023.

Profit Margins

• Q1 2025: Operating loss of $42.6 million compared to operating income of $55.2 million in Q1 2024.
• Fiscal Year 2024: Adjusted EBITDA of $157.4 million, down from $169.5 million in 2023.

Expense Management

• Significant reduction of high-interest debt through convertible notes, lowering interest rates from 12.5% to 3%.
• Proceeds from convertible notes used for site acquisition and growth initiatives.

Significant Financial Events

• Q1 2025: Net income of $580.7 million, significantly up from $210.7 million in Q1 2024, driven by fair value changes.
• Fiscal Year 2024: Net loss of $1.32 billion, compared to a net loss of $246.5 million in 2023.

3. Management Effectiveness

Strategic Decision-Making

• Transitioned from Bitcoin mining to high-density colocation services, focusing on AI workloads.
• Secured long-term contracts with CoreWeave, enhancing revenue stability and diversifying customer base.
• Expansion into new markets, such as Alabama and Oklahoma, to increase HPC capacity.

Capital Allocation

• Successfully raised funds through convertible senior notes to reduce high-interest debt and support growth.
• Strategic investments in infrastructure expansion, particularly in high-performance computing facilities.

Adaptability to Challenges

• Emerged from Chapter 11 bankruptcy and restructured operations to focus on HPC hosting.
• Adapted to changing market conditions by shifting focus from Bitcoin mining to colocation services.

4. Key Quotes from Management

• "The opportunity ahead of us is enormous, and I’m looking forward to helping our team fully capitalize on it." - Jim Nygaard, CFO, Core Scientific, Inc.
• "AI is driving one of the biggest shifts we’ve seen in infrastructure in decades." - Adam Sullivan, CEO, Core Scientific, Inc.
• "In a matter of months, we have transformed vision into execution, delivering infrastructure at scale and positioning ourselves at the center of one of the most important shifts in modern computing." - Adam Sullivan, CEO, Core Scientific, Inc.
• "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
• "We believe that we can maximize the value of our digital infrastructure portfolio and create significant value for our shareholders." - Adam Sullivan, CEO, Core Scientific
• "The conversion of the secured convertible notes represents another important milestone that highlights the significant progress we have made since our emergence from bankruptcy earlier this year and the value creation potential ahead for our business." - Adam Sullivan, CEO, Core Scientific
• "We are excited to build on our momentum and expand the scope of our HPC hosting business with significant additional infrastructure." - Adam Sullivan, CEO, Core Scientific