Core Scientific (CORZ) Investor Day 2024 summary

Strategic direction and business transformation

• Expanding from Bitcoin mining into high-performance computing (HPC) hosting, leveraging existing infrastructure and expertise to capture AI-driven data center demand growth through 2030, with 200 MW CoreWeave contracts targeting over $3.5B in revenue and 75–80% profit margins.

• Signed a landmark 200 MW, 12-year take-or-pay HPC hosting contract with CoreWeave, with CoreWeave funding all CapEx and paying for power, generating $3.5B in revenue and 75-80% profit margins.

• Reallocating infrastructure: 700 MW for HPC (500 MW for GPUs, 200 MW for support), leaving 500 MW for Bitcoin mining, with a focus on self-mining as hosting contracts expire, and actively considering modification of an additional 300 MW for future HPC hosting.

• Maintaining leadership in Bitcoin mining with a self-mining fleet of ~173,000 miners and a 2024 hash rate goal of 21.8 EH/s, while diversifying revenue streams to balance Bitcoin mining volatility with stable, long-term HPC hosting contracts.

• Building application-specific data centers (ASDCs) optimized for AI, HPC, and blockchain, with 200 MW HPC/AI development in progress and ongoing site selection for potential international expansion.

Financial performance and guidance

• Achieved industry-leading gross margins (25% in 2023, 43% in Q1 2024) and lowest operating expenses as a percentage of revenue among peers, with Q1 2024 gross margin outperforming competitors.

• CoreWeave deal provides stable, long-term, high-margin, USD-denominated revenue, reducing exposure to Bitcoin volatility, with all CapEx for HPC buildout funded by clients and $300M credited against hosting payments.

• After three years, margins rise to 80% for the remainder of the CoreWeave contract.

• Power costs are a direct pass-through to clients, leveraging advanced power management expertise to optimize rates, with an average fleet power price of 4.5–4.7¢/kWh.

• Deleveraging strategy underway, including warrant conversions, debt paydown, convertible note conversions, and warrant exercises, to strengthen the balance sheet and enable further growth.

Operational capabilities and competitive advantages

• Over 1.2 GW of contracted power, 796 MW owned operational infrastructure, and 455 MW partially developed, with a unique mix of greenfield and brownfield sites.

• Application-specific data center design enables rapid, large-scale deployment of high-density, liquid-cooled, GPU-ready facilities, supporting up to 300,000 Blackwell GPUs.

• Industry-leading team with deep experience in digital infrastructure, power procurement, and rapid hardware deployment, providing a significant barrier to entry.

• Proven ability to deliver projects ahead of schedule and maintain high uptime and efficiency, with 96% miner uptime, 95% hashrate utilization, and a flexible, modular approach to data center tiering and resiliency.

• Synergies between Bitcoin mining and HPC businesses allow for operational flexibility and future conversion opportunities as market demands shift.