CORZ

1. Key Historical Highlights

• April 7, 2025: Core Scientific earned 247 self-mined Bitcoin in March 2025, totaling 718 Bitcoin year-to-date.
• March 17, 2025: Jim Nygaard appointed as the new CFO, succeeding Denise Sterling.
• January 2025: Core Scientific emerged from Chapter 11 bankruptcy, relisted on Nasdaq, and began trading under the ticker symbol CORZ.
• December 2024: Core Scientific announced a $1.2 billion expansion at its Denton, TX site, increasing total contracted HPC infrastructure.
• November 2024: Core Scientific secured approval for lease amendments with the City of Denton, increasing leased land and power allocation.
• October 2024: Core Scientific continued to expand its infrastructure, completing a project to add 100 MW to its Pecos, TX bitcoin mining data center.
• September 2024: Core Scientific advanced customer-funded projects to modify data centers for high-performance computing (HPC).
• August 2024: Core Scientific secured $400 million in a convertible senior notes offering to refinance debt and fund growth initiatives.
• July 2024: Core Scientific announced a mandatory conversion of its outstanding Secured Convertible Notes due 2029 into common stock.
• June 2024: Core Scientific secured HPC hosting contracts for a total of 270 MW, with potential revenue exceeding $4.7 billion over 12 years.
• May 2024: Core Scientific signed a series of 12-year contracts with CoreWeave to provide approximately 200 MW of infrastructure for HPC services.
• April 2024: Core Scientific surpassed 20 exahash of energized self-mining hash rate and paid off $19 million in debt associated with mechanics’ liens.
• March 2024: Core Scientific earned more bitcoin than any other publicly listed miner in North America.
• February 2024: Core Scientific announced a multi-year contract with CoreWeave to provide up to 16 MW of data center infrastructure.
• January 2024: Core Scientific completed its reorganization under Chapter 11, reducing debt by $400 million through conversion to equity.

2. Financial Performance Overview

Revenue Growth

• 2024 Fiscal Year: Total revenue was $510.7 million, a slight increase from $502.4 million in 2023.
• Q1 2024: Total revenue reached $179.3 million, an increase of $58.6 million from the first quarter of 2023.

Profit Margins

• 2024 Fiscal Year: Reported a net loss of $1.32 billion, compared to a net loss of $246.5 million in 2023.
• Q1 2024: Net income was $210.7 million, compared to a net loss of $0.4 million in the same period of 2023.

Expense Management

• Core Scientific successfully emerged from Chapter 11, reducing debt by $400 million.
• The company has been actively refinancing debt through convertible senior notes offerings.

Significant Financial Events

• Convertible Notes Offering: Raised $400 million in August 2024 to refinance high-interest debt and fund growth initiatives.
• Debt Repayment: Paid off $19 million in debt associated with mechanics’ liens in April 2024.

3. Management Effectiveness

Strategic Decision-Making

• Core Scientific has strategically shifted focus from bitcoin mining to high-performance computing hosting services.
• The company has secured long-term agreements with CoreWeave, Inc. for significant infrastructure to support HPC operations.
• Management has successfully guided the company through Chapter 11 bankruptcy, emerging with a strengthened balance sheet.

Capital Allocation

• Core Scientific has wisely allocated capital towards expanding its HPC hosting capacity and reducing high-interest debt.
• The company has invested in infrastructure expansion, particularly in Denton, TX, and other strategic locations.

4. Key Quotes from Management:

• "We are excited to welcome Jim to the Core Scientific leadership team." - Adam Sullivan, Chief Executive Officer, Core Scientific (March 3, 2025 - CFO Transition)
• "Our new contracts with CoreWeave position us to transform our hosting business and our earnings power by capturing exciting growth opportunities in AI compute." - Adam Sullivan, Chief Executive Officer, Core Scientific (June 3, 2024 - CoreWeave Contract)
• "The conversion of the secured convertible notes represents another important milestone that highlights the significant progress we have made since our emergence from bankruptcy." - Adam Sullivan, Chief Executive Officer, Core Scientific (July 8, 2024 - Mandatory Conversion Announcement)
• "We believe that we can maximize the value of our digital infrastructure portfolio and create significant value for our shareholders." - Adam Sullivan, Chief Executive Officer, Core Scientific (July 5, 2024 - HPC Hosting Contracts)
• "Our team continues to deliver outstanding performance, which translates into continued market leadership and strong cash flow generation." - Adam Sullivan, Chief Executive Officer, Core Scientific (January 4, 2024 - Full Pay Down of DIP Financing)
• "The oversubscription for our equity rights offering signals shareholders’ strong confidence in our business and strategy." - Adam Sullivan, Chief Executive Officer, Core Scientific (January 8, 2024 - Equity Rights Offering)
• "With our team highly focused on operational excellence, a post-emergence pathway to de-lever our balance sheet and a plan for continued growth in 2024 and beyond, we are excited to pursue the opportunities ahead of us in the new year." - Adam Sullivan, Chief Executive Officer, Core Scientific (December 21, 2023 - Global Plan Settlement)