CORZ

1. Key Historical Highlights

• August 8, 2025: Core Scientific signed a merger agreement with CoreWeave for an all-stock transaction, marking a strategic shift towards high-density colocation services.
• July 7, 2025: CoreWeave announced its acquisition of Core Scientific, aiming to enhance data center ownership and profitability.
• May 16, 2025: Elizabeth Crain was appointed to Core Scientific's Board of Directors, enhancing governance and oversight.
• May 13, 2025: Todd Becker resigned from the Board of Directors, having contributed to significant capital raises and strategic hires.
• May 7, 2025: Core Scientific announced a strategic shift from Bitcoin mining to high-density colocation services, focusing on AI workloads.
• March 3, 2025: Jim Nygaard was appointed as the new CFO, bringing extensive experience in investment banking.
• February 27, 2025: Core Scientific emerged from bankruptcy and began trading on Nasdaq under the ticker symbol CORZ.
• February 26, 2025: Announced a $1.2 billion expansion at the Denton, TX site, solidifying its position in HPC data centers.
• February 19, 2025: Expanded into Auburn, Alabama with a new HPC facility, marking significant regional growth.
• January 9, 2025: Scott Brueggeman was appointed as Chief Marketing Officer, aiming to drive growth and brand leadership.
• December 5, 2024: Core Scientific completed a $550 million convertible senior notes offering to strengthen financial flexibility.
• November 20, 2024: Received approval to expand operations in Denton, TX, increasing power capacity significantly.
• November 18, 2024: Broke ground on a 100 MW HPC data center in Muskogee, OK, in partnership with CoreWeave.
• October 22, 2024: CoreWeave exercised its option for an additional 120 MW of digital infrastructure, boosting projected revenue.
• September 6, 2024: Announced CFO Denise Sterling's transition plan, highlighting leadership changes.
• August 20, 2024: Strengthened balance sheet by repaying $267 million in debt using proceeds from convertible notes.
• August 14, 2024: Priced a $400 million convertible senior notes offering to fund growth initiatives.
• August 13, 2024: Announced participation in multiple investor conferences to enhance investor relations.

2. Financial Performance Overview

Revenue Trends

Core Scientific has faced significant revenue declines due to its strategic shift and market conditions:

• H1 2025: Total revenue was $158.2 million, down from $320.4 million in H1 2024.
• Q2 2025: Revenue decreased to $78.6 million from $141.1 million in Q2 2024.

Profit Margins and Losses

The company has experienced substantial losses, reflecting operational challenges and strategic transitions:

• H1 2025: Operating loss of $68.9 million compared to an income of $61.8 million in H1 2024.
• Q2 2025: Net loss increased to $936.8 million, primarily due to non-cash adjustments.

Expense Management

Efforts to manage expenses include debt reduction and strategic investments:

• Successfully repaid $267 million in debt, reducing interest rates significantly.
• Raised $550 million through convertible senior notes in December 2024 to enhance financial flexibility.

3. Management Effectiveness

Strategic Decision-Making

• Transition to Colocation Services: Management's decision to shift from Bitcoin mining to colocation services for AI workloads aims to stabilize revenue and reduce risk.
• Expansion Initiatives: Strategic expansions in Texas and Alabama demonstrate foresight in capturing emerging opportunities in high-performance computing.

Capital Allocation

• Convertible Notes Offering: Proceeds from convertible notes were used to repay high-interest debt and fund growth initiatives, reflecting prudent capital management.
• Infrastructure Investments: Significant investments in expanding data center capacity indicate a focus on long-term growth and operational efficiency.

4. Key Quotes from Management:

• "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
• "With this transaction completed, we are moving forward with additional financial flexibility to invest in the continued expansion of our HPC hosting capacity while strengthening our bitcoin mining business." - Adam Sullivan, CEO, Core Scientific
• "We believe leveraging our existing infrastructure for high-density colocation services will provide more stable and predictable revenue streams and represents substantially less risk than our traditional hosted bitcoin mining or our bitcoin self-mining operations." - Management Team, Core Scientific, Inc.
• "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
• "Our strategy is focused on hyperscale cloud-based providers and enterprises who have significant data center infrastructure needs that have not yet been outsourced or will require additional data center space and power to support their growth." - Management Team, Core Scientific, Inc.
• "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
• "We are excited to welcome Scott Brueggeman to the Core Scientific leadership team." - Adam Sullivan, CEO, Core Scientific