Core Scientific, Inc. Stock Price: Quote, Forecast, Splits & News (CORZ)

Perplexity Finance

CORZ

Core Scientific, Inc.

CORZ

Overview

Financials

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$11.96

-$0.12

Jun 17, 10:55:20 AM EDT

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $3.6B
IPO Date: 1/24/24
CEO: Mr. Adam Sullivan
Fulltime Employees: 325
Sector: Technology
Industry: Software - Infrastructure
Country: US
Exchange: NASDAQ Global Select

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Core Scientific, Inc. Stock Price: Quote, Forecast, Splits & News (CORZ)

Change

-$0.12

Financial Profile

Prev Close

$12.08

Market Cap

$3.56B

Day Range

$11.63 - $12.02

Open

$11.84

P/E Ratio

-3.1

52W Range

$6.20 - $18.63

24H Volume

$22.33M

Dividend Yield

0.00%

EPS

-3.92

Key Issues

Latest Price Movement

Jun 17

Earnings

Report Date

May 7, 2025

Reported Revenue

79.5M

Miss -6.63%

Avg 1d Change

7.8%

Report Period

Q1 2025

Reported EPS

-0.1

Beat +16.67%

Implied Move 1d

9.54%

Transcript

10m 44s

Good afternoon, ladies and gentlemen, and welcome to Core Scientific first quarter twenty twenty five Good afternoon, ladies and gentlemen, and welcome to Core Scientific's first quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. After management's remarks. Please note that on this call, certain information presented contains forward looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include without limitation any statement other than historical or current facts that predict or indicate future events or trends. Forecasts, performance, or achievements and may contain words such as believe, anticipate, expect, estimate, intend, project, plan, or words or phrases with similar meaning. Forward looking statements are based on current expectations forecasts and assumptions that involve risks and uncertainties that may cause actual results to differ materially. For further information, on these risks and uncertainties, we encourage you to review the risk factors discussed in the company's annual report on Form 10 ks filed with the Securities and Exchange Commission and a special note regarding forward looking statements contained in the company's current report on Form eight ks filed today and the earnings release and slide presentation contained there.

12m 31s

Today's presentation is available on our website at corescientific.com. In the event in Presentation section. The content of this conference call contains information that is accurate only as of today May 7, 2025. The company undertakes no obligation to update statements made today to reflect events or circumstances occurring after today. Joining me today from Core Scientific are our CEO, Adam Sullivan our Chief Operating Officer Matt Brown and our Chief Financial Officer, Jim Nygard. We will now begin with remarks from Adam. Thank you all for joining us today. Before we dive into the quarter, want to take a step back and talk about where we are both as a company and as an industry. AI is driving one of the biggest shifts we've seen in infrastructure in decades. It's not just about more demand, it's about a new kind of infrastructure purpose built for high performance high density workloads. We believe we're in any one of this transformation especially when considering that many large enterprises are just beginning to plan their AI strategies. And we're already seeing early signs of significant demand. As those plans turn to action, Core Scientific is well positioned to be a major supplier of infrastructure that will power it.

13m 56s

There's a clear dislocation in the market today. Traditional data center providers are struggling to meet the density requirements that AI workloads demand. That mismatch between supply and demand has opened up a unique window and where we are the only pure play infrastructure company in the public markets focused specifically on high density colocation. That focus gives us a real opportunity to lead and to carve out a meaningful share in a market that's just getting started. At the center of our strategy is our relationship with CoreWeave. Our contracts with CoreWeave are foundational. Not just because of their size, but because of how they are structured. Core Web is funding virtually all of the capital investment on these deployments. That keeps our balance sheet leverage light especially compared to peers. And it gives us the flexibility to use debt strategically as a tool to fund future growth and drive long term shareholder value. Simply put, are building more than capacity. We are laying the foundation for what comes next. For this company, and for the growth of accelerated compute. And while Core Web is a significant first step it's just that the first step of a long journey.

15m 10s

With that, I'll start with a quick update on our three strategic priorities then I'll hand it off to Matt for a construction update. Followed by Jim for a review of the financials. We will close out today with Q and A. Before we go further, I want to officially welcome Jim Nygard, our Chief Financial Officer. Jim brings deep experience in M and A, capital markets and corporate finance. He's already made a strong impact and I'm excited to have him with us as we scale this business. Let me start with our first strategic priority. Diversifying our customer base. We've seen a lot of headlines recently questioning whether demand for AI infrastructure is starting to soften. When you listen to the data center providers themselves, Core Scientific included, the story is very different. Across the board, we're seeing strong sustained demand for high density infrastructure. The signals from customers are clear and the pipeline continues to build. Now to be clear, we haven't signed a new customer yet. But our sales pipeline is expanding. It includes a healthy mix of hyperscale and large enterprise customers and we are actively negotiating with multiple customers today. We're encouraged by both the quality and the scale of the opportunities we're seeing.

16m 24s

Hyperscale demand while it may fluctuate at the account level, continues to track in line with what we saw last quarter. What's even more compelling the emerging demand from large enterprises, These organizations are just beginning to roll out AI use cases and they're realizing that existing infrastructure won't meet their performance needs. We currently have several non hyperscale deals in our pipeline ranging from 50 to 100 megawatt customers. These are substantial deployments and they come with a return profile that's attractive. It's a strong signal that large enterprise demand can be both material and strategic to our business. As always, our goal is to place the right customers in the right locations. And looking ahead to the rest of the year, and 2026, I'm more confident than ever in our ability to build a customer base that is more diverse, more balanced, and more strategically aligned with our long term vision. Our target remains the same. To have Core represent less than 50% of our billable capacity by the end of twenty twenty eight. Our second strategic priority is executing on the Core Web contracts And I want to take a moment to acknowledge just how much progress we've made on that front.

17m 35s

Over the past quarter, made significant progress advancing the build out of five seventy megawatts of total billable capacity [indiscernible] Further illustrating our ability to move quickly execute and deliver high density colocation infrastructure at scale. One standout is our Denton facility. Which has quickly become a cornerstone of this effort. We expect to deliver the first tranche eight megawatts of billable capacity this month with additional deliveries in Denton scheduled throughout the year, including another 40 megawatts delivered by the end of this quarter. Notably, we understand from public statements that OpenAI is working with CoreWeave and Denton. And when fully built out, it will host one of the largest GPU clusters in North America possibly the largest in the world. At full scale, the site will represent around two sixty megawatts of billable capacity. To put that in perspective, we broke ground in January, and in just roughly four months we've achieved meaningful progress. It's a powerful demonstration of our ability to execute quickly and at scale with before and after pictures included in our updated investor presentation. Looking ahead, I'm even more confident than I was just two months ago in our ability to hit our milestones.

18m 49s

Two fifty megawatts by the end of this year, inclusive of Austin, and five ninety megawatts by early twenty twenty seven. Before providing an update on our third priority for this year, let me take a moment to talk about our contract with CoreWeave. Which continues to be a foundational pillar of our growth strategy. There has been a lot of interest in how this agreement is structured and for good reason. It's not only one of the largest GPU infrastructure contracts in the market today, it's also uniquely designed to position us for scalable capital efficient growth. This is a take or pay fixed price contract. That means Core Web is contractually committed to paying for the capacity we deliver regardless of utilization. It's also built around shared execution risk which keeps both parties aligned financially and operationally on meeting key milestones. From a capital perspective, Core Web is funding virtually all of the CapEx associated with these deployments. Our only direct capital outlay on the contracts, the $104,000,000 associated with the 70 megawatt expansion we announced during our last earnings call. That structure significantly reduces our capital burden keeps our balance sheet leverage like compared to peers, and gives us the flexibility to use debt more strategically for future growth.

20m 6s

Believe this approach sets us apart. And creates a clear path to long term value creation. The equipment installed at our sites secures Core's contractual commitments with respect to the CapEx and the recurring payments under the contracts. As agreed, we have filed UCC one financing statements reflecting our contractual security interest in the assets installed in our sites. With that said, Coreave is a close strategic customer of ours. And that continues to show strong momentum as evidenced by recent customer announcements. And we believe that we benefit from the critical role played by CoreWeave in shaping the future accelerated compute in our strong mutually beneficial commercial relationships over the long term. Our third strategic priority expanding our data center capacity. Both organically and through targeted M and A On the organic side, we remain confident in our ability to add approximately 300 megawatts of billable capacity across our existing sites by the end of twenty twenty seven. Looking ahead, we also continue to believe there are significant opportunities to grow into new geographies and we're targeting an additional 400 megawatts of billable capacity through new site development over the next three years. Our site selection strategy continues to focus on locations where we can secure the right power, at the right cost and match it to the right type of customer demand.

21m 32s

On the M and A front, Jim will speak more in a moment about how we're thinking strategically about expansions through acquisition. We're focused on opportunities that align with our core competencies offer compelling economics, and can be scaled efficiently. Together, these efforts are building the foundation for long term capital efficient growth and reinforcing our position as a leading provider of high density infrastructure for the GPU cloud. Before I turn it over to Matt, I want to take a moment to recognize Denise Sterling, who recently stepped down as our Chief Financial Officer. Denise stepped into the CFO role at one of the most critical moments in Core Scientific's history. She played a pivotal role in stabilizing the business, guiding us through our successful restructuring, and positioning the company for long term growth. Denise built an outstanding finance team led us through a complex transformation and help secure the resources we needed to execute on our long term vision. She also played a key role in enabling a smooth and successful transition to gym as our new CFO. So on behalf of the entire Core Scientific team and community, thank you, Denise, for all that you've done for Core Scientific.

22m 42s

With that, I'll turn it over to Matt Brown. Our Chief Operating Officer for a detailed update on our construction progress. Thanks, Adam. Want to start by echoing your comments. I'm very pleased with the strong progress our team has made over the past several months as we continue to execute in the development of five seventy megawatts of billable capacity for Core Weave across four locations.

23m 5s

Denton, Dalton, Marble and Muskogee. These sites when completed will represent a combined infrastructure investment of more than $5,000,000,000 To date, we have secured all the equipment necessary to meet our 2025 delivery goals and we are well insulated from the impact of recent changes in global tariffs. I want to focus my comments this quarter on our Denton, Texas facility. A 64 acre campus, that will deliver two sixty megawatts of billable power capacity across eight buildings totaling 350,000 square feet of high density colocation space. Each building is engineered and purpose built to support next generation computing platforms that push the envelope of performance and efficiency. The scale and execution here are remarkable. Today, the manpower at Dendon has scaled to over 600 contractors. We've logged more than 187,000 man hours, poured over 2,800 cubic yards of concrete and installed more than 30 miles of conduit. Want to extend my gratitude to our trade partners. And the Core Scientific Delivery team for not only meeting their targets, but exceeding them. I would also like to acknowledge the City of Denton Denton Municipal Electric whose partnerships have been instrumental in keeping this project moving at pace. We are delivering the first tranche of eight megawatts of billable capacity to Core Week this month.

24m 33s

And we'll continue delivering capacity consistently throughout the rest of the year including an additional 40 megawatts by the end of the second quarter. In total, Denton is expected to be a significant portion of the two fifty megawatts we plan to deliver for CoreWave in 2025. In closing, I remain confident in our ability to deliver two fifty megawatts to CoreWeave by the end of this year and the full five ninety megawatts by early twenty twenty seven. With that, I will now turn it over to our CFO, Jim Nygard. Thanks, Matt. Before I get started, I'd like to say how truly excited I am to be here. And to join the team at such a pivotal moment in the company's evolution. What attracted me to this opportunity was the remarkable transformation already underway. Shifting from Bitcoin mining operations into the data center space with real momentum. The CoreWeave contracts provide a unique and highly strategic foundation for this transition. These contracts offer long term recurring revenue with minimal capital outlay on our part. Something rarely seen in the industry. We're in a moment, the broader data center industry hasn't experienced in years. AI driven demand is fundamentally reshaping infrastructure needs around the world and this company is extremely well positioned to lead in that shift.

25m 59s

Of course, there's no shortage of noise in the market, narratives that often don't reflect the facts on the ground. But I believe as many of you do, that the market will refocus on fundamentals over time. Disciplined execution, sustainable and profitable growth, and long term value creation. That's where our attention is. And that's what will set us apart. The opportunity ahead of us is enormous and I'm looking forward to helping our team fully capitalize on it. I'd like to begin by sharing my perspective on capital allocation. An area that will be central to how we drive long term shareholder value. As we scale, it's critical that every dollar we deploy aligns with our strategy, enhances operational flexibility, [indiscernible] Our capital allocation priorities are clear. We will invest in the development and expansion of capacity at existing sites, new sites, and through strategic M and A. Focusing on transactions that can broaden our customer base and strengthen our capabilities as a leading developer of next generation high density colocation infrastructure. These investments not only support our strategic objective, of reducing Core Weave, to less than 50% of billable capacity by the end of twenty twenty But in our view, are also the best way to maximize long term shareholder value.

27m 36s

That said, we maintain a high bar for capital deployment. While we don't impose strict return thresholds, every project is rigorously evaluated based on its strategic merit. Factors including location, power availability, site attributes, customer demand potential, and financial contribution to the broader portfolio.

28m 1s

As of the end of the first quarter, we had approximately $780,000,000 of liquidity including cash, cash equivalents and Bitcoin. Additionally, the structure of the core Weave contracts where they fund the vast majority of associated CapEx enables us to leverage those contracts efficiently. Looking forward, we plan to utilize traditional project financing structures that are widely used across the data center industry. And over time, we believe our net debt to adjusted EBITDA leverage can and should trend toward approximately four times. Consistent with peers in the space. Now a brief word on Bitcoin. As our financial profile continues to evolve with our shift to colocation infrastructure. We remain focused on optimizing our mining operations to meet our long term utility commitments during the transition.

29m 1s

At the end of Q1, we held just under 1,000 Bitcoin. At the April, the balance was just under 1,200 Bitcoin. We are now positioned to efficiently hedge that exposure allowing us to manage downside risk while retaining upside potential. In summary, with increasing scale, greater profitability, improved stability and a more diversified customer base, we believe these factors will contribute to a lower cost of capital over time and a structurally higher valuation framework for the company. Now let's turn to the first quarter results. Total revenue for the quarter was $79,500,000 down 16% sequentially and adjusted EBITDA was negative 6,100,000.0 The sequential revenue decline was primarily driven by mining disconnections, and relocations as we continue converting sites to support high density colocation. More specifically, we earned $7.19 Bitcoin in the first quarter, compared to $9.74 in the fourth quarter. We ended the quarter with a fleet of approximately 156,000 self mining units and our self mining energized hash rate averaged 18.1 exahash during the period. With that said, as we continue to prioritize our high density colocation business, we no longer plan to publish monthly Bitcoin production reports. Instead, we will shift our focus to providing more consistent updates on Core Weave related construction progress.

30m 43s

Which we believe is more useful to investors since it better reflects the strategic direction of the business. Moving on, CapEx for the first quarter was just under 90,000,000 over half of which was funded by CoreWeave. In line with contract terms. In addition to amounts Core Web was responsible for, we funded a small amount of CapEx related to the acquisition of land and pre funding of costs associated with non Core Weave colocation sites. Finally, as we've shared with you in the past, we previously entered into a purchase agreement with Block. For three nanometer chips and in the first quarter we made the second scheduled installment payment. We continue to expect the remaining installments of the block agreement to be made during 2025 and early twenty twenty six. Going forward, we do not expect the first quarter CapEx to be indicative of future quarters.

31m 43s

Our pro form a fully diluted share count as of May 1 was approximately five zero two million shares. We are currently modeling a statutory effective tax rate of 22% in 2025. We also have more than $380,000,000 in net operating loss carryforwards. Which will reduce future cash taxes. And with that, I'll open the call up for questions.

32m 10s

Thank you. The floor is now open for questions. Questions. And our first question comes from Joe Flynn from Compass Point. Go ahead, Joe.

32m 37s

Hi, thanks for the question. Given that we have seen other quarterly lead comps we're wondering if there's any credit enhancements built into your lease such as a guarantee from [indiscernible] or step in rights in the event of a default It just seems like you mentioned to open it at Denton. Like the amount of infrastructure is ultimately going to be pretty important to their build out. And they want to risk a single party losing that access? Thanks. Yes. Thanks for the question, Joe. I think, what we displayed on Page 12 of our investor report, we outlined some of the major terms really related to the contract. Speaking to your earlier question related to any pass throughs, that's something that would have to be discussed with directly with Core Web But the one thing I would say is we're really excited about the core contracts that signed so far. And we value them highly as a commercial counterparty to Core Scientific.

33m 39s

Great. Thanks.

33m 40s

And then hoping maybe you could provide more color on the the co location, initial co location CapEx and potential plans for the North Dakota remaining 100 megawatts that could be spreaded out? Yes. I can probably is Matt. I can provide a little bit of color there So essentially, what we was doing in Grand Forks is sort of preparing that site for an ultimate build out and expansion. So acquiring roughly 70 acres of land that's directly adjacent to the existing operating site with so that we can sort of tap into the existing power infrastructure at that site for an eventual, high density co location facility.

34m 27s

Great. Thanks.

34m 30s

Thank you. And our next question comes from Brett Knoblauch from Cantor Fitzgerald. Go ahead, Hi, guys. Thanks for taking my question. Maybe one for you, Adam. It seemed like you were particularly positive on the large enterprise [indiscernible] Rather than just maybe your Tier one hyperscalers? I guess what has maybe changed over the past couple of months where those conversations have started to ramp up? Yes, absolutely. The one thing I would say about the demand of hyperscalers before we move into large enterprise there are significant ebbs and flows. I would say on an aggregate basis, basis, it remains consistent in terms of what their demand profile looks like on an aggregate basis. On an individual company basis, there is ebbs and flows. We've obviously seen the reports on a number of the different hyperscalers. And those timelines look much different to getting to final contract terms in large enterprise.

35m 25s

Now over the past six months, we've seen the large enterprise channel continue to build. And this is as very large enterprises are continuing to develop their AI use cases and determine their actual needs in terms of location and sizing. Now I mentioned earlier that deck pipeline has some significant demand built up in the channel. Not only from smaller customers, but from some large customers as well where we're seeing demand ranging from 50 to 100 megawatts, which gets us very excited about that. And we believe large enterprise could represent anchor tenants at some of the new locations that we're evaluating today. Perfect. Thank you. Then maybe just on the new location side. Is that something that you would expect to announce this year? Would that announcement kind of at the same time with a potential new tenant? Or would you acquire additional capacity before potential tenant would come online? Maybe just as a follow-up to that, do you think bringing on the eight megawatts then the 40 megawatts this month and this quarter will give a lot of the big potential tenants something to look at and maybe help close some of those deals? Yes, absolutely.

36m 40s

So I'll talk about the first part related to new sites. This is something where we're currently in market with a number of new sites. And these are sites that we would expect to announce alongside of new customer developments. And so we're hopeful that over the course of 2025, we'll be able to make multiple announcements related to this we are evaluating multiple jurisdictions today to continue to grow into. Now on part two of your question, I'm going to hand it over to Matt Brown. And would you mind repeating the second part of your question? Yes. Can you just maybe talk about the relative importance of actually energizing some capacity that potential tenants could look at as your ability to stand up Blackwell's, for example, and give that it would give them more confidence to then sign a deal? Think, like, they're waiting on that? Yes. No, I think that's a great point. So I think to some degree, yes. I mean, we're certainly in the mode of just executing and kind of proving that we know how to execute on these large very complex projects. So as we continue to bring that capacity online, we'll only expect to be able to gain additional confidence in the market.

38m 5s

And our next question comes from Darren Aftonni from Roth Go ahead, Darren.

38m 12s

Yes. Thanks for taking my questions and congrats on the progress. Adam, your comments about enterprise versus hyperscaler, I'm just kind of curious, I know you don't have anything signed, but as you look at a large enterprise vis a vis Hyperscalar, any sense for kind of like timeframe in terms of actually getting a lease sign, meaning is it more advantageous that you think an enterprise would be shorter timeframe to get that done? And is there any kind of internal preference one versus the other?

38m 43s

Yes, it's a great question. Thanks, Darren. Large enterprises, the timeline to get into final contract details are definitely faster than on the hyperscale side. There is a natural inclination to move towards hyperscale.

38m 58s

The broader perspective of their creditworthiness. But the large enterprises that we're looking at today are I think $75,000,000,000 market cap plus. And represent a credit worthiness that we find very acceptable in the return profile of these are higher than hyperscale deals as well. So as we evaluate potential multi tenant build outs, going forward, large enterprises could represent significant anchor tenants for those new sites to allow us to begin development in new geographies and start building out new sites. And just to go back to a previous question, Denton is a flagship facility that we're developing today. And we think that's going to be a really large standoff facility. And there's reasons why peers are talking about that site. It is going to be truly a flagship site in the Dallas Fort Worth area.

39m 50s

Great. And then maybe one more. The cadence of the eight megawatts and then the 40 additional, by the end of the quarter, Can you just kind of maybe help us understand how we should maybe model that? Is it more back end loaded in the second quarter? Thanks.

40m 10s

I would say that these sites are going to continue to come online over the course of of the next few months and the eight megawatts and the 40 megawatts these are going to come online as they come online. There's it's a day by day item in terms of when those will turn on. And so it's hard for us to say today exactly exact day or hour that those will turn on, Darren.

40m 33s

Fair enough. Thank you.

40m 36s

Thank you. And our next question comes from Nick Giles from B. Riley Securities. Go ahead, Nick.

40m 44s

Thank you, operator. Good afternoon, everyone. First, I want to say congratulations to Denise on your time at Core's and congratulations to you Jim on stepping in. My first question, you're reiterating your construction timeline today and you mentioned that you'll now provide monthly updates on construction. So what kind of project milestones should we be looking for to really gain clarity that things are moving on time and just that your timeline remains intact? Yes, great question. So think what the updates you're going to see from us will provide just additional color at kind of [indiscernible] each month moves by and as we kind of get through the calendar year. Exactly kind of what we're targeting for ready for service dates and key project milestones. So as we kind of complete things like commissioning or we approach commissioning dates, and we approach handover dates we'll start talking about those things as well as clearing key milestones at some of the other sites and, in addition to Denton. Thanks Matt.

41m 52s

Sorry, you dropped out. Sorry. Next question comes from John Tornado from Needham. Go ahead, John.

42m

Hey, guys. Thanks for taking my question. And congrats on the quarter and I love the new presentation. I thought it laid out a lot of stuff and answered a lot of questions. First, Adam, you had mentioned that you're more confident hitting miles milestones now versus even two months ago. That seems to be the case with eight megawatts coming online. But was there anything that kind of changed construction wise or other that's given you that more confidence in kind of allowed you to hit some of the milestones?

42m 29s

Thanks for the question, John. As you get closer to commissioning dates on the first building, you start to have greater confidence in your ability to continue to execute on the future buildings at that site. And so this is something that we're seeing obviously first and foremost at Denton but we will continue to see that at future sites as well. As we get closer to the first, the commissioning of the first building, we'll have much greater clarity in terms of the timeline and execution of the future buildings at that site. And so this first eight megawatt building is a large milestone for the Denton campus and it will be followed shortly thereafter by a 40 megawatt building. And we expect to see buildings continue to turn online over the course of this year at that facility as well.

43m 13s

Got it. That makes sense. And then second question, I did just want to get a little bit more clarity on that. CapEx arrangement change. [indiscernible] Just want to make sure I understand that piece. Is there any kind of clarity just around what kind of CapEx arrangement ultimately changed there?

43m 37s

I'll take that. The CapEx arrangement hasn't changed in terms of Core Weave's requirement to fund the CapEx, the mechanism in which it was being done effectively changed. We were able to effectively eliminate [indiscernible] the escrow arrangement and it just made it more efficient for their side of the ledger as well. So to be clear, when we are required to pay PO from a contractor or to meet our obligations we will not make those payments until we receive the funds from Core That is how our contract is stipulated. So effectively, we're replicating the same structure it relates to our exposure. There's no effective change in our CapEx arrangement as a result of that change.

44m 24s

Got it. Understood. Thank you, guys. Appreciate it.

44m 27s

Yep. Thank you.

44m 29s

Thank you. And our next question comes from George Sutton from Craig Hallum. Go ahead, George.

44m 36s

Hey, guys. This is Logan on for George. Thanks for taking the questions. Adam, can you just talk about kind of what gives you confidence in terms of that 300 megawatts that you're going to look to get out of the existing sites today? Maybe just an update on where you are in that process, having conversations with utilities, regulators, etcetera?

44m 55s

Yes, absolutely. And thanks for the question, Logan.

44m 57s

Yes, I mean, where we sit today is we have extraordinarily close relationship with the utilities across all of our sites. Something that we've cultivated when we are, I'll call it, the black sheep in the industry. Industry when we are a Bitcoin miner amongst the utilities. And our relationships were forged through deep communication with each of those utilities as a Bitcoin mining business. And so as we've moved forward, and have shown progress on the sites in our development towards conversion to co location facilities They've been impressed with our developments. They're watching us continue to grow at these sites and they're excited about that as well. And we're currently in discussions with these utilities around what those future contracts will look like, what the total power potential is, And based on where we sit with conversations today, we feel confident in our ability to get and that's 300 megawatts of billable capacity. So we believe we will be able to achieve about four fifty megawatts of gross capacity over the course of 2025 and 2026 from our existing utilities. Which we're excited about. We will have the opportunity to continue to expand those sites and potentially bring new customers in as well.

46m 15s

Got it. And then maybe just a quick follow-up. I mean, you've talked about how unique the Core Web deal is. And you mentioned a little bit earlier that the return profile with those enterprise customers might be a little better. I'm just wondering if you can talk about how we should think about potential terms on new deals, whether it be enterprise, hyperscale, just will be different than that CoreWeave deal? Or is it changing month to month? Just an update there would be appreciated.

46m 41s

Yes, absolutely. Yes, mean, the Core Weave contract is not going to be replicated in the market. Now the distinction I would make as we evaluate new contracts going forward there are really two components to negotiating a contract, whether it be with a hyper or whether it be with a large enterprise. Those two components are NRC and MRC. The NRC is essentially what that upfront payment is towards the CapEx and the MRC is that monthly recurring charge. And so when we evaluate deals, there's a give and take whether you're receiving and what the scale is of a non recurring charge. Versus that monthly recurring charge. And so we're currently evaluating a number of different deal structures that we're in discussions with clients. I would say, we're excited about the return profiles the large enterprises represent. Because they do have the capability based on their scale and their size that they're demanding today. Represent an acre tenant for us to open up a new site location. And so we will continue to evaluate deals going forward and we're excited about the continuously growing pipeline in large enterprise channel.

47m 54s

Got it. Thank you.

47m 57s

Thank you. And our next question comes from Joe Vafi from Canaccord Genuity. Go ahead, Joe.

48m 4s

Hey, Will Johnston on here for Joe. Thanks for taking my question.

48m 8s

Adam, maybe just a high level question from me. Do you mind talking about how if at all conversations with customers have changed sequentially given tariffs and new market dynamics? And then maybe how has the pace of discussions changed? And are you seeing any different reactions from hyperscalers versus enterprises?

48m 28s

Thanks.

48m 30s

Yes. I appreciate the question. And the first point, tariffs represent an interesting change to the dynamics of this industry right now. The way we're looking at it today is there is going to be some uptick in terms of CapEx requirements for new builds. Which we believe will continuously drive up lease rates over over the near term until there's greater clarity on the tariff impact on new data center developments. And so we have seen some of that start to flow through lease discussions. But we have confidence that with our best in class supply chain team that we will have rates that we believe will be similar, but still a bit more expensive thinking about 5% to 10% more expensive on the CapEx side. Then there will be a commiserate increase in lease rates across the industry. Now in terms of your question related to the pace of discussions, I would say large enterprises have quickened their pace around what their demand is. I think initially they were evaluating, what size what locations they were interested in moving to. But that has become much more specific over time. As they have firmed up their plans for growth.

49m 41s

And I believe that large enterprise will continue to represent a large growth factor for large high density colocation facilities going forward. And so that's why we mentioned in our prerecorded remarks, And we believe that it's going to be a significant channel for us going forward.

50m 1s

Very helpful. Thanks.

50m 4s

Thank you. And our next question comes from Kevin Dede from H. C. Wainwright. Go ahead, Hi Adam and welcome Jim. I think maybe first off the bat for Matt, I understand that Core Scientific or really hard with Core Weave to help them through the development of of the infrastructure, namely networking etcetera, And I'm wondering, given now that there are other publicly traded companies, I'm wondering if some of that IP you helped develop is at all proprietary or does it automatically translate to Core Weaves other suppliers?

50m 57s

Yes. The way I would look at this is that CoreWeave and CoreScientific are in a really tightly coupled relationship. From both a design, engineering and delivery standpoint. While it is sort of core scientific teams that are building the infrastructure and taking a lead on the design is certainly we're certainly doing that in really close collaboration with Core Weave's engineering team and infrastructure delivery teams. And so any IP that might result of that certainly would be certainly shared by the two entities. And we would look at that as I certainly as a competitive advantage in the marketplace. No one today has tried to execute on a GPU build of the size of Denton in particular. And so we think we're going to learn a lot of the lessons first and we're going to be ahead of the game we'll be able to leverage those learning experiences to future projects which we only think will just widen our competitive advantage in the market.

52m

Okay.

52m 1s

Regarding M and A, what could you say about targets and acquisition criteria As you think about this gap that Core Scientific can fill, in meeting high density versus legacy data center operators that are stuck with low low rack power builds. How should we reconcile that?

52m 36s

Thanks for the question, Kev.

52m 39s

I think the way we're thinking about it right now is we're evaluating opportunities in in the new generation of data center capacity. So we really want to go after potential targets that represent an opportunity to continue our lead in terms of the amount of infrastructure that's being developed for this next compute. Now that being said, we will still look to acquire certain types of assets and maybe give us diversity on workload as well. We believe over time as we develop Core Scientific into a true data center platform that we will have a mix of more traditional GPU or CPU capacity But really our focus is continuing to grow and develop our GPU deployment platform, which we believe will be one of the largest in The United States. And we will look to continue and extend our lead in that area.

53m 33s

So the takeaway, Adam, for me is just to think that you'll be looking for sites and builds that fit your criteria as it stands now versus taking a step back in the technology development chain?

53m 53s

Yes. I'd say we're looking at a healthy mix of both. Sites as well as companies that have contracts with leading companies in the industry.

54m 6s

Fair enough, sir. Thank you very much for entertaining my questions. Congratulations on the progress.

54m 16s

You. And the next question comes from Paul Golding from Macquarie Capital. Go ahead, Paul.

54m 24s

Thanks so much. Just quickly, housekeeping question. I wanted to ask regarding digital asset mining. I think previously you'd mentioned that the digital asset mining hosting capacity was you were going to exit that by year end. Just wanted to confirm that that was still the plan since we saw some revenue come through this quarter for that. And then my main question is around long lead time items.

54m 51s

Just referencing your commentary around 2025 goals, the equipment being acquired, to meet those goals. Wanted to ask about 26, hearing about long lead times for step down infrastructure and other components particularly around electrical equipment. And so just wanted to see that was progressing as well. Thank you.

55m 18s

Yes. Thank you, Paul. On the digital asset mining hosting business, we still do have a legacy contract that will continue to roll off over the course of 2025. So that would be the expectation for your modeling that that will continue to degrade over the course of 2025. Now, for your second question related to Longlea Taina, items to meet our goals in 2026, I'll hand it over to Matt Brown.

55m 46s

Yes. I think the way to look at this is 2025, we've already secured all that equipment and most of it's already sitting in the ground either in warehouses adjacent to the projects.

55m 57s

That are ongoing, or at the project site themselves. 2025 is locked in from an equipment standpoint. 2026 we have a good read through on both the availability and cost for all that equipment. A lot of that through the first half of twenty twenty six has already been procured.

56m 17s

And a few portions of that will start taking delivery towards the second half of this year.

56m 23s

For projects that are going to extend that are going to start launching in twenty twenty six.

56m 28s

With that said, I think this part of this touches on tariffs and and equipment availability.

56m 35s

And with our strong relationships with our suppliers, that I would say we have really, really good insights and the availability and that we're not really too concerned right now about not being able to take receipt of equipment and meeting our OJ dates or any buy dates to meet our delivery goals.

56m 55s

So much for the color, Matt.

57m

Thank you.

57m 1s

And our next question comes from Bill Papastou from KBW. Go ahead, Bill, your line is open.

57m 8s

Yes. Good evening, gentlemen. Thanks for taking my questions. Adam, I believe there was mention in the call that there are several pipeline that range between 50 megawatts to 100 megawatts. Are you able to touch on the composition of those prospect customers And how would you define their ability to scale beyond perhaps 150 megawatt or 100 megawatt contract, could we see the same sort of scaling capacity as CoreWeave?

57m 41s

That's a great question. Thank you, Bill. Yes, in the 50 to 100 megawatt comment just to clarify, was related on the large enterprise side. And I would say absolutely. Large enterprises are looking for a spread of megawatts across multiple sites in certain cases. And so we could absolutely see a client that looks to take 50 megawatts at one site and continues to grow with Core Scientific over the course of many years. And that's really something that we're looking to build as we continue to build out this company into a true data center platform. We're looking at building long term relationships with our clients and look to continue to grow alongside of those clients as they look to continue their build outs. And so we have high confidence in our ability to win these contracts and we will continue to update the market over the course of 2025 is to the ones that we're able to Appreciate that color. And then with respect to the three nanometer block ASICs, can you give an update on delivery timeline and clarify whether these units have had any impact from the recent tariffs or are they also somewhat insulated?

58m 49s

Yes. I would say that I would reiterate what we said in our previous earnings call, which was that we believe in continue to believe today that we will receive these machines over the course of the second half of twenty twenty five. Now on the tariff side, we believe the impact will be insulated overall from from the tariff impact. And just to note, our contract is priced on a fixed price, for seat of those machines. And so we're hopeful that over the course of 2025, we'll be able to continue to update the market in terms of our progress of being able to deploy these new block units that we are today incredibly excited about.

59m 32s

Thank you.

59m 35s

Thank you. And our next question comes from Steven Galagola from Jones Trading. Go ahead.

59m 43s

Hi, Adam, Matt and welcome, Jim. Thank you for the question.

59m 47s

Is the high level of Core Weave concentration a deterrent for other hyperscale customers pursuing leases with Core Scientific That was my first one. And then just additionally, for Grand Forks specifically, can you expand on what level of enterprise demand you are seeing from potential HPC tenants for that site? Thank you.

1h 11s

Yes. I would say from a in terms of hyperscalers being deterrent by Core Weave concentration, I would say I'd look at it as exactly the opposite. To my earlier point from the one of the first questions today, which was I think our delivery and execution is only going to breed confidence kind of as this year goes on.

1h 32s

Again, we're probably the one of the only data center providers right now that's going to launch 50 megawatts in a single calendar year of what essentially is going to be more than 100,000 of GB 200. So I think as we our execution will kind of prove in itself, [indiscernible] with hyperscalers.

1h 57s

Thank you. And then can you touch on the second sorry, go ahead.

1h 1m 1s

Yes, sorry. Your second part of your question relating to the Grand Fork site.

1h 1m 6s

So right now, the Grand Fork site, as we see it, we're we were acquiring 70 acres of land for a high density colocation development there, which is certainly what is part of our plan. Interest in that site has sort of ranged from enterprises to content providers and some of the hyperscalers. So I think we've seen kind of interest from pretty much all segments as it for that location.

1h 1m 36s

Thank you, Matt.

1h 1m 41s

At this time, are no questions. I would now like to turn the call back to John Charbonneau for any closing remarks.

1h 1m 50s

Thank you. Thank you very much for joining the call today. And please remember to vote your shares If you are having trouble, please just reach out to our IR e mail available on the website. Thank you very much.

1h 2m 3s

Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

Key Insights

Core Scientific is rapidly transitioning from Bitcoin mining to high-density AI-focused data center colocation, with a foundational contract with CoreWeave, who is funding nearly all CapEx for deployments, keeping Core Scientific’s balance sheet leverage light.
The company’s three strategic priorities are: diversifying its customer base (with a growing pipeline of large enterprise and hyperscale customers), executing on CoreWeave contracts (targeting 250 MW delivered by end of 2025 and 590 MW by early 2027), and expanding data center capacity both organically (targeting 300 MW by 2027) and through M&A (targeting an additional 400 MW over three years).
Q1 2025 financials: total revenue was $79.5 million (down 16% sequentially), adjusted EBITDA was negative $6.1 million, and CapEx was just under $90 million (over half funded by CoreWeave); liquidity at quarter-end was approximately $780 million.
The company expects to reduce CoreWeave to less than 50% of billable capacity by the end of 2028, is actively negotiating with multiple large enterprise customers (with potential deals ranging from 50 to 100 MW), and anticipates announcing new sites alongside new customer wins during 2025.
Construction milestones are on track, with the Denton, TX facility (260 MW at full buildout) delivering its first 8 MW tranche this month and another 40 MW by quarter-end; all equipment for 2025 is secured, and the company is confident in meeting both 2025 and 2026 delivery goals despite industry-wide tariff and supply chain challenges.

Recent Transcripts

Core Scientific advances AI data center buildout, shifts focus from mining to high-density colocation.

Strong Enterprise Demand

Core Scientific pivots to HPC hosting, securing $10B in long-term contracts and expanding capacity.

Earnings

Report Date

May 7, 2025

Reported Revenue

79.5M

Miss -6.63%

Avg 1d Change

7.8%

Report Period

Q1 2025

Reported EPS

-0.1

Beat +16.67%

Implied Move 1d

9.54%

Transcript

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32m 10s

Thank you. The floor is now open for questions. Questions. And our first question comes from Joe Flynn from Compass Point. Go ahead, Joe.

32m 37s

33m 39s

Great. Thanks.

33m 40s

34m 27s

Great. Thanks.

34m 30s

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38m 5s

And our next question comes from Darren Aftonni from Roth Go ahead, Darren.

38m 12s

38m 43s

38m 58s

39m 50s

40m 10s

40m 33s

Fair enough. Thank you.

40m 36s

Thank you. And our next question comes from Nick Giles from B. Riley Securities. Go ahead, Nick.

40m 44s

41m 52s

Sorry, you dropped out. Sorry. Next question comes from John Tornado from Needham. Go ahead, John.

42m

42m 29s

43m 13s

43m 37s

44m 24s

Got it. Understood. Thank you, guys. Appreciate it.

44m 27s

Yep. Thank you.

44m 29s

Thank you. And our next question comes from George Sutton from Craig Hallum. Go ahead, George.

44m 36s

44m 55s

Yes, absolutely. And thanks for the question, Logan.

44m 57s

46m 15s

46m 41s

47m 54s

Got it. Thank you.

47m 57s

Thank you. And our next question comes from Joe Vafi from Canaccord Genuity. Go ahead, Joe.

48m 4s

Hey, Will Johnston on here for Joe. Thanks for taking my question.

48m 8s

48m 28s

Thanks.

48m 30s

49m 41s

50m 1s

Very helpful. Thanks.

50m 4s

50m 57s

52m

Okay.

52m 1s

52m 36s

Thanks for the question, Kev.

52m 39s

53m 33s

So the takeaway, Adam, for me is just to think that you'll be looking for sites and builds that fit your criteria as it stands now versus taking a step back in the technology development chain?

53m 53s

Yes. I'd say we're looking at a healthy mix of both. Sites as well as companies that have contracts with leading companies in the industry.

54m 6s

Fair enough, sir. Thank you very much for entertaining my questions. Congratulations on the progress.

54m 16s

You. And the next question comes from Paul Golding from Macquarie Capital. Go ahead, Paul.

54m 24s

54m 51s

55m 18s

55m 46s

Yes. I think the way to look at this is 2025, we've already secured all that equipment and most of it's already sitting in the ground either in warehouses adjacent to the projects.

55m 57s

56m 17s

And a few portions of that will start taking delivery towards the second half of this year.

56m 23s

For projects that are going to extend that are going to start launching in twenty twenty six.

56m 28s

With that said, I think this part of this touches on tariffs and and equipment availability.

56m 35s

56m 55s

So much for the color, Matt.

57m

Thank you.

57m 1s

And our next question comes from Bill Papastou from KBW. Go ahead, Bill, your line is open.

57m 8s

57m 41s

58m 49s

59m 32s

Thank you.

59m 35s

Thank you. And our next question comes from Steven Galagola from Jones Trading. Go ahead.

59m 43s

Hi, Adam, Matt and welcome, Jim. Thank you for the question.

59m 47s

1h 11s

1h 32s

1h 57s

Thank you. And then can you touch on the second sorry, go ahead.

1h 1m 1s

Yes, sorry. Your second part of your question relating to the Grand Fork site.

1h 1m 6s

1h 1m 36s

Thank you, Matt.

1h 1m 41s

At this time, are no questions. I would now like to turn the call back to John Charbonneau for any closing remarks.

1h 1m 50s

1h 2m 3s

Thank you. This does conclude today's conference. We thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

Key Insights

Core Scientific is rapidly transitioning from Bitcoin mining to high-density AI-focused data center colocation, with a foundational contract with CoreWeave, who is funding nearly all CapEx for deployments, keeping Core Scientific’s balance sheet leverage light.
The company’s three strategic priorities are: diversifying its customer base (with a growing pipeline of large enterprise and hyperscale customers), executing on CoreWeave contracts (targeting 250 MW delivered by end of 2025 and 590 MW by early 2027), and expanding data center capacity both organically (targeting 300 MW by 2027) and through M&A (targeting an additional 400 MW over three years).
Q1 2025 financials: total revenue was $79.5 million (down 16% sequentially), adjusted EBITDA was negative $6.1 million, and CapEx was just under $90 million (over half funded by CoreWeave); liquidity at quarter-end was approximately $780 million.
The company expects to reduce CoreWeave to less than 50% of billable capacity by the end of 2028, is actively negotiating with multiple large enterprise customers (with potential deals ranging from 50 to 100 MW), and anticipates announcing new sites alongside new customer wins during 2025.
Construction milestones are on track, with the Denton, TX facility (260 MW at full buildout) delivering its first 8 MW tranche this month and another 40 MW by quarter-end; all equipment for 2025 is secured, and the company is confident in meeting both 2025 and 2026 delivery goals despite industry-wide tariff and supply chain challenges.