Core Scientific, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Core Scientific, Inc. has filed its annual report for the fiscal year ending December 31, 2023.</b>

AI Summary

Core Scientific, Inc./tx (CORZR) filed a Annual Report (10-K) with the SEC on March 13, 2024. Core Scientific, Inc. filed its 2023 Form 10-K on March 13, 2024. The company was formerly known as Power & Digital Infrastructure Acquisition Corp. and changed its name on January 6, 2021. The filing covers the fiscal year ending December 31, 2023. Core Scientific operates in the Finance Services sector (SIC 6199). The company's principal business address is in Austin, Texas.

Why It Matters

For investors and stakeholders tracking Core Scientific, Inc./tx, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Core Scientific's financial performance, operational activities, and strategic positioning for the fiscal year 2023. As a publicly traded entity, this filing is crucial for investors, creditors, and other stakeholders to assess the company's financial health, risks, and future prospects.

Risk Assessment

Risk Level: — Core Scientific, Inc./tx shows moderate risk based on this filing. The company's financial performance and operational stability are subject to the volatile nature of the cryptocurrency market and evolving regulatory landscapes, as detailed in their risk factors.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Core Scientific's performance and outlook in the digital asset mining and hosting sectors.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-13 — Filing Date (Date of submission)
• 001-40046 — SEC File Number (Company's SEC filing number)

Key Players & Entities

• Core Scientific, Inc. (company) — Filer name
• Power & Digital Infrastructure Acquisition Corp. (company) — Former company name
• 2024-03-13 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• Austin, TX (location) — Business address
• 6199 (industry_code) — Standard Industrial Classification

FAQ

Industry Context

Core Scientific operates within the digital asset mining and hosting industry, a sector characterized by rapid technological advancements and market volatility.

Regulatory Implications

As a publicly traded company, Core Scientific is subject to the reporting requirements and regulations set forth by the U.S. Securities and Exchange Commission (SEC).

What Investors Should Do

1. Review the financial statements and management's discussion and analysis for detailed insights into 2023 performance.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing the company.
3. Compare key financial metrics with previous periods to identify trends and assess financial health.

Key Dates

• 2024-03-13: 10-K Filing — Annual report submission for fiscal year 2023.
• 2021-01-06: Name Change — Company changed name from Power & Digital Infrastructure Acquisition Corp. to Core Scientific, Inc.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational information compared to previous filings.

Key Financial Figures

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• $6.81 — of common stock at an exercise price of $6.81 per share CORZW The Nasdaq Global Sel
• $0.01 — of common stock at an exercise price of $0.01 per share CORZZ The Nasdaq Global Sel
• $0.85 — of the common stock on June 30, 2023 of $0.85). Indicate by check mark whether the r
• $0 — 6,074 shares of Common Stock, par value $0.00001, were outstanding. DOCUMENTS INC
• $1 million — xchange volume has grown from as low as $1 million in January 2017 to as high as $510 mill
• $510 million — 1 million in January 2017 to as high as $510 million in December 2023 according to blockchai
• $0.000764 — 5, 2009, for a single bitcoin, equaled $0.000764. During the year ended December 31, 202
• $44,167 — ce of one bitcoin ranged from a high of $44,167 in December 2023 to a low of $16,625 in
• $16,625 — of $44,167 in December 2023 to a low of $16,625 in January 2023. As of March 7, 2024, t
• $66,925 — lished trading price of one bitcoin was $66,925. Bitcoin Mining In a proof-of-work ap

Filing Documents

• core-20231231.htm (10-K) — 3234KB
• exhibit1097-letterofagre.htm (EX-10.97) — 8KB
• exhibit211listofsubs.htm (EX-21.1) — 5KB
• exhibit231-marcumconsent.htm (EX-23.1) — 3KB
• exhibit232eyconsent.htm (EX-23.2) — 2KB
• exhibit311-q42023xwithconf.htm (EX-31.1) — 14KB
• exhibit312-q42023xwithconf.htm (EX-31.2) — 14KB
• exhibit321-q42023xwithconf.htm (EX-32.1) — 5KB
• exhibit322-q42023xwithconf.htm (EX-32.2) — 5KB
• exhibit971compensationclaw.htm (EX-97.1) — 24KB
• exhibit1097-letterofagre001.jpg (GRAPHIC) — 226KB
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• image_0.jpg (GRAPHIC) — 2KB
• image_1.jpg (GRAPHIC) — 8KB
• 0001628280-24-010682.txt (&nbsp;) — 24642KB
• core-20231231.xsd (EX-101.SCH) — 154KB
• core-20231231_cal.xml (EX-101.CAL) — 130KB
• core-20231231_def.xml (EX-101.DEF) — 741KB
• core-20231231_lab.xml (EX-101.LAB) — 1350KB
• core-20231231_pre.xml (EX-101.PRE) — 1063KB
• core-20231231_htm.xml (XML) — 2219KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 42 Item 1C. Cybersecurity 42 Item 2.

Properties

Properties 43 Item 3.

Legal Proceedings

Legal Proceedings 43 Item 4. Mine Safety Disclosures 43 Part II 43 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44 Item 6. [Reserved] 45 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 46 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 77 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 77 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 141 Item 9A.

Controls and Procedures

Controls and Procedures 141 Item 9B. Other Information 142 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Part III 143 Item 10. Directors, Executive Officers and Corporate Governance 143 Item 11.

Executive Compensation

Executive Compensation 151 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 157 Item 13. Certain Relationships and Related Transactions, and Director Independence 160 Item 14. Principal Accountant Fees and Services 161 Part IV 163 Item 15. Exhibit and Financial Statement Schedules 163 Item 16. Form 10-K Summary 169

Signatures

Signatures 170 2 Part I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, including, without limitation, statements under Item 1. — "Business" and Item 7. — " Management's Discussion and Analysis of Financial Condition and Results of Operations," includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). Forward-looking statements may be identified by the use of words such as "aim," "estimate," "plan," "project," "forecast," "goal," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company's ability to scale and grow its business, source clean and renewable energy, the advantages and expected growth of the Company and the Company's ability to source and retain talent. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this Annual Report on Form 10-K, and on the current expectations of the Company's management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumption

Business

Item 1. Business Overview Core Scientific, Inc. ("we," "us," "our," the "Company," "Core Scientific," or "Core") is a best-in-class large-scale operator of dedicated, purpose-built facilities for digital asset mining and a premier provider of blockchain infrastructure, software solutions and services. We employ our own large fleet of computers ("miners"), primarily manufactured by Bitmain Technologies Limited ("Bitmain"), to earn bitcoin for our own account and provide hosting services for large bitcoin mining customers at our seven operational data centers in Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1) and Texas (2). We derive the majority of our revenue from earning bitcoin for our own account ("self-mining"). We began digital asset mining at scale in 2018 and in 2020 became one of the largest North American providers of hosting services for third-party mining customers. As of December 31, 2023, we were one of the largest blockchain data center, digital asset mining and hosting service providers in North America, with an average hourly operating power demand of approximately 592 megawatts ("MW") for the year. As of December 31, 2023, we had secured approximately 1,198 MW of contracted power capacity at our sites. We operate in two segments: "Mining" consisting of bitcoin mining for our own account, and "Hosting" consisting of our third-party hosting business. Our hosting business provides a full suite of services to digital asset mining customers. As part of these hosting services, we provide deployment, monitoring, troubleshooting, optimization and maintenance of our customers' digital asset mining equipment and provide necessary electrical power and repair and other infrastructure services necessary to operate, maintain and efficiently earn digital assets. Our business strategy is to increase our capacity, efficiency and productivity to drive cash flow, strengthen our balance sheet and invest in our mining businesses and adjacent market o

View Full Filing

View this 10-K filing on SEC EDGAR