Core Scientific (CORZ) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Strategic positioning and infrastructure

• Operates 1.2 GW of contracted power, with 500 MW for Bitcoin mining and 700 MW for high-performance computing (HPC), of which 500 MW can be directly allocated to servers.

• Emerged from Chapter 11 in January and rapidly expanded HPC contracts, signing 382 MW in 2024, positioning among the largest data center companies.

• Operates across five states with a sixth under development, providing low-latency access to major metropolitan markets.

• Continues to expand its Pecos, Texas site, adding 100 MW to the existing 71 MW.

• Plans to sunset the hosting business and refresh the mining fleet, focusing on self-mining and HPC growth.

Financial performance and capital structure

• Signed contracts represent $6.7 billion in cumulative revenue, strengthening cash flow for future growth.

• Q2 revenue reached $141 million, with a net loss of $805 million due to non-cash warrant mark-to-market, and $46 million in Adjusted EBITDA.

• Raised $460 million via convertible notes, eliminating $275 million in debt and adding $175 million in cash.

• Reduced total debt from $1.1 billion at the start of the year to about $550 million by mid-year, with further reductions post-Q2.

• Restructured capital to remove high-covenant, collateralized debt, improving financial flexibility.

Operational efficiency and technology

• Maintains industry leadership in Bitcoin mined since 2021, leveraging early infrastructure development.

• Achieved a Q2 cash cost to mine of $29,900, outperforming expectations in a post-halving environment.

• Utilizes proprietary firmware and energy management software to optimize operations and reduce costs.

• Pursues a shift in mining hardware design with Block, aiming to lower maintenance CapEx from 20-25% to mid-teens of revenue.

• Plans to refresh the mining fleet with Block chips in 2025, targeting lower joules per terahash and higher hash rates.