Core Scientific, Inc. · NASDAQ:CORZ
Core Scientific — Power & Digital Infrastructure Acquisition — SPAC Merger (October 2021)
41 slides from Core Scientific's SPAC merger presentation, Oct 20, 2021
Slide 1: Core Scientific Analyst Event October 19, 2021
CORE SCIENTIFIC ANALYST EVENT October 19, 2021
Slide 2: Introduction
INTRODUCTION Steve Gitlin SVP Investor Relations
Slide 3: Legal Disclaimer
LEGAL DISCLAIMER CONFIDENTIAL INFORMATION. The information in this presentation is highly confidential. This presentation has been furnished to you solely for your information. The distribution of this presentation by an authorized recipient to any other person is unauthorized. Any photocopying, dis
Slide 4: Today's Agenda
TODAY’S AGENDA Topic Time Presenter Introduction and Security Briefing 8:45—9:00 Steve Gitlin, SVP IR Scaling and Securing the Blockchain Ecosystem Mike Levitt, Co-Chairman & CEO Scaling Our Data Centers Wes Adams, EVP Construction 9:00 – 10:00 Key Technology Enablers Alan Curtis, EVP & CTO Operatio
Slide 5: Scaling and Securing the Blockchain Ecosystem
SCALING AND SECURING THE BLOCKCHAIN ECOSYSTEM Mike Levitt Co-Founder, Co-Chairman, Chief Executive Officer
Slide 6: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM WESTON ADAMS MATT BROWN KYLE BUCKETT LYNN BURGENER EVP, Construction EVP, Data Center Operations SVP, Corporate Operations SVP, Tax & Trade TODD DUCHENE DARIN FEINSTEIN RUSSELL CANN ALAN CURTIS EVP, General Counsel Co-Founder and Co-Chairman EVP, Client Services EVP, Chie
Slide 7: Why Core Scientific?
WHY CORE SCIENTIFIC? MARKET LEADER FULL SPECTRUM TRACK RECORD TEAM IP OUR NETWORK 1 2 3 4 5 6 A Leading 71 Patents or Strong Relationships Carbon-Neutral1 Vertically Integrated Large, Diversified and Deep, Experienced Applications2 Primarily with Vendors, Power Blockchain Self-Mining and Growing Cus
Slide 8: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Market Leading Results • 1,588 BITCOINS (SELF-MINED) • 2,816 BITCOINS HELD • 2.64 EH/s SELF-MINING HASHRATE • 4.48 EH/s HOSTING HASHRATE • APPROXIMATELY 150 FULL-TIME EMPLOYEES
Slide 9: Leader in High Performance, Net Carbon-Neutral Infrastructure & Software Solutions
LEADER IN HIGH PERFORMANCE, NET CARBON-NEUTRAL INFRASTRUCTURE & SOFTWARE SOLUTIONS FOR BLOCKCHAIN NETWORKS Diversified and Balanced Business Model Infrastructure Digital Asset Mining Hosting Blockchain Technology Facilities built and in development in five states dedicated to hosting large scale blo
Slide 10: Distributed Geographic Footprint
DISTRIBUTED GEOGRAPHIC FOOTPRINT LEGEND Existing Sites in Operation New Sites in Development Note: Dalton, GA includes additional site under construction 10
Slide 11: Strong IP Portfolio (71 Patents)
STRONG IP PORTFOLIO (71 PATENTS*) PROPRIETARY FACILITY DESIGNS PROPRIETARY TECHNOLOGY MINDER™ Fleet Management Software To Optimize Performance and Uptime
Slide 12: Scaling Our Data Centers
SCALING OUR DATA CENTERS Wes Adams EVP, Construction
Slide 13: Dedicated Construction, Development and Power Team
DEDICATED CONSTRUCTION, DEVELOPMENT AND POWER TEAM WESTON ADAMS EVP, Construction GARRY FIFE SVP, Electrical and Design LESA LAMBERSON Manager, Purchasing KYLE BUCKETT SVP, Corporate Operations KELSEY GALLAGHER SVP, Facilities Construction HARSH PATEL Mechanical Engineer JIM CLEVELAND SVP, Power Acq
Slide 14: Our Development Process Builds on Continuous Learning
OUR DEVELOPMENT PROCESS BUILDS ON CONTINUOUS LEARNING Deep Experience and Effective Resource Management Streamline Process Evaluate Sites Select Site Negotiate Power Gain Local Alignment Procure Key Equipment and Supplies Design Data Center Build Data Center Transition to Operations
Slide 15: We Design Our Data Centers to Deliver Maximum Uptime
WE DESIGN OUR DATA CENTERS TO DELIVER MAXIMUM UPTIME BLOCKCHAIN INFRASTRUCTURE • Airflow and heat evacuation • Optimize cost • Maintain thermal balance • Continuously improve and evaluate alternative technologies (e.g., immersion)
Slide 16: Key Technology Enablers
KEY TECHNOLOGY ENABLERS Alan Curtis EVP, Chief Technology Officer
Slide 17: Blockchain Technology Development Overview
BLOCKCHAIN TECHNOLOGY DEVELOPMENT OVERVIEW Pioneering Innovative Financial Products and Services through Blockchain Technology Industry leading, proprietary fleet management software that maximizes uptime, monitoring, and management Powering and securing new blockchains, protocols, and networks Gene
Slide 18: Minder Fleet Management Software
MINDER™ Supporting Our Competitive Advantage with Our Proprietary Fleet Management Software Support Growth Highly scalable Minder™ software Automate Processes Incident response through software solutions before escalating to manual diagnoses Manage Inventory Track, monitor, read logs, and configure
Slide 19: Operational Excellence
OPERATIONAL EXCELLENCE Matt Brown EVP, Data Center Operations
Slide 20: Distributed Footprint Across Multiple Geographies
DISTRIBUTED FOOTPRINT ACROSS MULTIPLE GEOGRAPHIES Notes: Fargo, ND scheduled for commissioning before end of 2021; Denton, TX in development phase; MW data for Fargo, Calvert, Marble and Dalton represent 2021 year-end planned usable capacity, including third Dalton site under construction Fargo, ND
Slide 21: Delivering Industry-Leading Operational Availability
DELIVERING INDUSTRY-LEADING OPERATIONAL AVAILABILITY • High Miner Operating % • High network uptime to hash pool • Third quarter total (hosting & self-mining) hashrate 7+ EH/s and growing • Deployment Velocity of 1,000+ units per day • Dedicated Miner Maintenance & Repair Source: Core Scientific ® 2
Slide 22: Delivering Industry-Leading Operational Availability
DELIVERING INDUSTRY-LEADING OPERATIONAL AVAILABILITY Experts in Application Specific Integrated Circuit (ASIC) operation & repair 24 x 7 on-site support at all facilities Data Center Certified repair techs at every Operations site Experienced data center operations Facility M&E management Operations
Slide 23: Facility Tour
FACILITY TOUR ® 23
Slide 24: Goals and Progress
GOALS AND PROGRESS Michael Trzupek EVP, Chief Financial Officer ® 24
Slide 25: Mining and Hosting Are Logistically Similar
MINING AND HOSTING ARE LOGISTICALLY SIMILAR Core Scientific is Well Positioned to Conduct Self-Mining and Provide Hosting Services Self-Mining Retained for self-mining Mining digital assets for the Bitcoin held by Company’s own account Core Scientific Procure Miners Miners deployed in Miners shipped
Slide 26: Scaling the Business and Delivering Results
SCALING THE BUSINESS AND DELIVERING RESULTS Revenue ($M)1 Total Hashrate (EH) 11 $493 1 2 $60 $60 1 $19 2018A 2019A 2020A 2021E 2018A 2019A 2020A 2021E Infrastructure Capacity (MW) Blockchain and Infrastructure Patents2 512 71 52 229 197 18 89 1 2018A 2019A 2020A 2021E 2018A 2019A 2020A 2021E Note:
Slide 27: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE ($ in millions) Revenue1 Adjusted EBITDA2 Digital Asset Mining $1,140 Blockchain Hosting Adjusted EBITDA Blockchain Hardware Adjusted EBITDA Margin Decentralized Finance 41% 50% $493 $572 10% $203 $60 $6 2020A 2021E 2022E 2020A 2021E 3 2022E 3 Note: Assumes average Bitco
Slide 28: Full Visibility – Hashrate
FULL VISIBILITY –HASHRATE Sufficient Miners Ordered or Installed to Meet 2022 Hashrate Projection 15 EH Year-End 2022 Projection ® 28 Self-Mining Hashrate
Slide 29: Strong Visibility – Announced Infrastructure
STRONG VISIBILITY –ANNOUNCED INFRASTRUCTURE 133 MW to Achieve 2022 Projection 1,031MW Year-End 2022 Projection 512MW Year-End 2021 Projection ® 29 1000 800 600 400 200 Infrastructure Megawatts (MW)
Slide 30: Q&A
Q&A cone scienrinc®
Slide 31: Summary and Closing
SUMMARY AND CLOSING ® 31
Slide 32: Why Core Scientific?
WHY CORE SCIENTIFIC? MARKET LEADER FULL SPECTRUM TRACK RECORD TEAM IP OUR NETWORK 1 2 3 4 5 6 A Leading 71 Patents or Strong Relationships Carbon-Neutral1 Vertically Integrated Large, Diversified and Deep, Experienced Applications2 Primarily with Vendors, Power Blockchain Self-Mining and Growing Cus
Slide 33: Thank You
THANK YOU ir@corescientific.com
Slide 34: Appendix
APPENDIX
Slide 35: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Year Ended December 31, 2020 (dollars in thousands) Net income (loss) $ (12,206) Interest expense, net 4,436 Income tax expense -Depreciation and amortization 9,403 EBITDA $ 1,633 Adjustments: Stock-based compensation (1) $ 3,037 Gain from sale of digital currency asse
Slide 36: Risk Factors
az RISK FACTORS
Slide 37: Risk Factors (1/5)
RISK FACTORS (1/5) The below list of key risks has been prepared solely for the purposes of potential investors evaluating the the proposed Business Combination, and not for any other purpose. Unless the context otherwise requires, all references below and in the following risk factors to the “Compa
Slide 38: Risk Factors (2/5)
RISK FACTORS (2/5) 9. Our revenue comes from a small number of customers, and the loss of, or significant decrease in business from, any number of these customers or the failure to continually attract new customers could have a material adverse effect on our business, financial condition and results
Slide 39: Risk Factors (3/5)
RISK FACTORS (3/5) 23. financial Concerns condition about greenhouse and results gas of operations. emissions and global climate change may result in environmental taxes, charges, assessments or penalties and could have a material adverse effect on our business, 24. If partnerships, we do not succes
Slide 40: Risk Factors (4/5)
RISK FACTORS (4/5) 41. If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired. 42. We may acquire other businesses or rece
Slide 41: Risk Factors (5/5)
RISK FACTORS (5/5) 57. We do not intend to pay dividends for the foreseeable future. 58. The announcement of the proposed Business Combination could disrupt our relationships with our suppliers or other third parties. 59. We will incur significant transaction and transition costs in connection with
Power & Digital Infrastructure Acquisition — SPAC Merger (October 2021) on 6ix