Core Scientific, Inc./tx Q4 FY2024 earnings call

• Secured a 16-megawatt agreement with CoreWeave in Austin delivered 30 days early, with total revenue potential over contract term at $8.7 billion. - Expanded HPC infrastructure capacity, ending 2024 with over 1,300 megawatts of contracted power, including approval to expand gross capacity at Denton site by nearly 100 megawatts. - Deferred capital deployment until customer negotiations finalized, with potential major development in Auburn, Alabama. - Significantly improved balance sheet in 2024, well-positioned for growth strategy. - Strategic hires strengthened leadership and execution capabilities.

Total revenue for the fourth quarter was $94.9 million, down 33% year-over-year. Digital asset self-mining revenue was $79.9 million, a decline of 29%, driven by fewer Bitcoin earned but higher Bitcoin price. Digital asset hosted mining revenue was $6.5 million, down from $30 million in the prior year as hosted mining contracts were sunsetted. HPC hosting revenue was $8.5 million, with 16.5 megawatts of critical IT load at year-end. The average annual fleet-wide power rate in 2024 was $0.04 per kilowatt hour, beating the target. Gross margins for the quarter were 2% for digital asset self-mining, 36% for digital asset hosting, and 9% for HPC hosting. The non-GAAP cash gross margin for HPC hosting in Q4 2024 was 16%.

• 2025 focus areas: diversify HPC customer base (goal to have CoreWeave <50% of critical IT load by 2028), execute on existing HPC contracts, expand HPC capacity organically and via M&A. - Expect to have delivered ~250 megawatts of HPC capacity to CoreWeave by end of 2025, with full 590 megawatts online in early 2027. - Aim to add 300 megawatts of capacity across existing sites by end of 2027 and ~400 megawatts of new capacity over next three years via M&A.

• Power constraints in some markets could impact expansion plans. - Intense competition with new market entrants who may overstate power agreements. - Delays in permitting and project execution due to complexity and supply chain issues.

Q: Can you talk about the permitting process and timeline elongation for the Denton site?

A: Permitting process had additional challenges related to expansion and design adjustments for efficiency and scale, but past that process and confident in current schedule.

Q: What's the status with Alabama Power and the Auburn site?

A: High confidence in gaining additional megawatts, but significant capital deployed once new customer contract secured.

Q: How do you view the impact of CoreWeave's contract revenues potentially going down?

A: CoreWeave's demand is stronger than 2024, continuing to expand globally.

Q: Any change in pricing discussions with customers?

A: Pricing is geographic and proximity specific, with price discovery occurring and starting to find a foundation in 2025.