Core Scientific, Inc. · NASDAQ:CORZ
Core Scientific — Investor Day (June 2024)
43 slides from Core Scientific's investor day presentation, Jun 12, 2024
Slide 1: Investor and Analyst Day
INVESTOR AND ANALYST DAY June 12, 2024 Denton, TX
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding projections, estimates and forecasts of revenue and other
Slide 3: Agenda
Agenda Topic Time Presenter Welcome and Intro 11:15 – 11:20 Steve Gitlin, SVP IR Growth Strategy 11:20 – 11:40 Adam Sullivan, CEO Financial Positioning 11:40 – 12:00 Denise Sterling, CFO Lunch 12:00 – 12:15 All A New Vision for Digital Infrastructure 12:15 – 1:00 Matt Brown, COO Q&A and Closing 1:00
Slide 4: Today's Speakers
Today’s Speakers Adam Sullivan Denise Sterling Matt Brown CEO CFO COO 4
Slide 5: Our Objectives For Today
Our Objectives For Today Explain Communicate Demonstrate Outline mechanics and key terms broader market how we are executing our our clear path for near- of our 200 MW CoreWeave opportunity for HPC and HPC build-out and and long-term value agreements value of our remaining strategy creation 300MW 5
Slide 6: Growth Strategy
GROWTH STRATEGY Adam Sullivan | Chief Executive Officer Joined in 2023 Previously Managing Director and Head of Digital Assets and Infrastructure at XMS Capital Partners Oversaw more than $5 billion of transactions, including Core Scientific’s business combination with XPDI in 2021 6
Slide 7: Core Scientific energizes high-value compute through two businesses
Core Scientific energizes high-value compute through two businesses Eight high-power data centers in five U.S. states employing proprietary tech stack firmware, fleet management and energy management Bitcoin Mining Hosting • Operate owned fleet of ~173,000 bitcoin miners • Bitcoin miners: producing
Slide 8: The Beginning
The Beginning Infrastructure Growth Operational MW 800 700 Founders began small scale mining in 2012 600 500 Sought sites with abundant reliable & affordable 400 power, connectivity, vacant land or existing 300 buildings, economic incentives, water 200 100 0 Purchased Marble, NC site in 2017 2018 20
Slide 9: We design and build application-specific digital infrastructure
Marble, NC Dalton 1, GA 104 MW 50 MW We design and build application-specific digital infrastructure Dalton 3, GA Grand Forks, ND 145 MW 100 MW Pecos, TX 250MW (Cottonwood 1 & 2) Commentary Calvert City, KY Cottonwood Denton, TX • Greenfield Buildout in 2022 150 MW 125 MW 1 • Campus has (2) phases –
Slide 10: Highest public company bitcoin production in North America
Highest public company bitcoin production in North America 2021 2022 2023 2024 (through May) RIOT MARATHON IRIS ENERGY HUT8 HIVE CORE SCIENTIFIC CLEANSPARK BITFARMS ARGO 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 All bitcoin production and Hashrate data from company press releases; data as of
Slide 11: Core Scientific
Core Scientific transforms energy into high- value compute with superior efficiency at scale 11
Slide 12: Reallocating 1,200 MW contracted power portfolio to maximize shareholder value
Reallocating 1,200 MW contracted power Contracted power: portfolio to maximize shareholder value allocated and approved by utilities for our use only Partially built infrastructure: 16MW Austin 16MW Austin 16MW Austin 16MW Austin 16MW Austin infrastructure begun but not 100 Muskogee 200MW 120MW Avai
Slide 13: HPC strategy addresses extensive and rapidly growing market
HPC strategy addresses extensive Industry Tailwinds and rapidly growing market GenAI has resulted in a wave of companies building Core Scientific is uniquely positioned to capitalize and iterating on large, compute-intensive models on strong and sustained demand for high-power data center capacity C
Slide 14: HPC hosting complements current business model
HPC hosting complements current business model with expected stable, long-term and high margin revenue Q1 2024 Operational Spec MW¹ Total Spec MW² Capacity — Pro Forma HPC³ 25% BTC Mining & HPC ~760 BTC Mining & ~1,200 Hosting 40% 2% MW Hosting 98% MW Potential BTC to HPC Modification 35% 1. Reflect
Slide 15: 200MW hosting contracts | transaction highlights
200MW hosting contracts | transaction highlights Core Scientific enters into definitive agreements with CoreWeave to expand high-performance compute (“HPC”) business¹, with optionality for meaningful further expansion at other Core Scientific sites Strategic Growth Financial Represents a significant
Slide 16: CoreWeave transaction summary
CoreWeave transaction summary 200 MW HPC $3.5 billion $290 million infrastructure revenue over avg. annual (280 MW total) contracts’ term revenue1 75% to 80% 12-year Anticipated profit margin contracts with two 5-year options Client pays Operational for capex2, power and utilities in 1H 2025 1. Repr
Slide 17: Summary
Summary Diversifying our hosting business to create long term shareholder value | Capturing explosive AI compute market growth | Fortifying our strong bitcoin mining franchise Balancing our Strengthening Leveraging our Changing the Expanding our business our earnings core equation in platform for po
Slide 18: Financial Positioning
FINANCIAL POSITIONING Denise Sterling | Chief Financial Officer Joined in 2021 Previously Senior Vice President, Finance, and FP&A at Oportun, Inc. Senior financial executive at Visa for 23 years 18
Slide 19: Well positioned for continued growth and market leadership
Largest owned Top producer of Executing on de- Well positioned for infrastructure bitcoin among public leveraging strategy to capacity (MW) for self-mining peers manage down debt continued growth bitcoin mining and since 2021 and market hosting in North America leadership Effectively managing Divers
Slide 20: Superior profitability and operating expense management
Superior profitability and operating expense management CORZ produced highest gross margin and lowest operating expenses as a % of revenue among large peers Gross Margin Operating Expenses as a % of Revenue 73% CORZ MARA RIOT CLS K 46% 46% 43% 41% 41% 36% 25% 25% 23% 9% 22% 9% -4% -2% -27% CORZ MARA
Slide 21: CoreWeave transaction benefits
Continues build-out Amplifies access to Raises revenue of HPC capabilities fast-growing, extensive visibility hyperscale data center market CoreWeave transaction benefits Moderates revenue Upgrades business volatility linked to model with stable, long- bitcoin price term and high margin revenue stre
Slide 22: Key deal terms in line with Q1 2024 earnings call remarks
Key deal terms in line with Q1 2024 earnings call remarks Metric Q1 2024 Earnings Call CoreWeave HPC Contracts $ Revenue Per MW/ Year $1.4M – $1.6M $1.45M Profit Margin 75% – 80% ~80% Power and Utilities Direct pass-through to client Direct pass-through to CoreWeave HPC Capacity ~700 MW (60%) or ~50
Slide 23: Illustrative key financials and timeline
Illustrative key financials and timeline Year 1 Year 2 Year 3 Year 4 – 12 2025 2026 2027 2028 – 2037 Total GAAP Revenue1 $ 290 $ 290 $ 290 $ 2,630 $ 3,500 Expenses (58) (58) (58) (526) (700) Profit $ 232 $ 232 $ 232 $ 2,104 $ 2,800 Profit Margin 80% 80% 80% 80% 80% Capex Credit2 (145) (145) (10) - (
Slide 24: Lunch
Lunch CORE SCIENTIFIC
Slide 25: A New Vision for Digital Infrastructure
A NEW VISION FOR DIGITAL INFRASTRUCTURE Matt Brown | Chief Operating Officer Joined in 2021 Previously Senior Director — Americas IBX Operations at Equinix, responsible for 200 data centers, 380,000 cabinets and 1,000MW of critical infrastructure Senior executive at Hewlett Packard, responsible for
Slide 26: Operational excellence delivered
Operational excellence delivered Performance FY24 Impact >200k 96% 28,255 Operational Miners 2024 avg Miner Uptime Miners deployed | ~4.8EH/s 100 95% 73GWH Data Center Technicians 2024 avg Hashrate Utilization >200 grid support events <25 2.1EH Joules/TH 90-day Avg Hashrate returned to service from
Slide 27: Core Scientific — Application Specific Data Centers (ASDC)
Core Scientific — Application Specific Data Centers (ASDC) Performance, Flexibility and Efficiency Scalability Performance Efficiency 1.2GW 16MW 1.41 Contracted Power across portfolio HPC Capacity online HPC avg. PUE 500MW 100% 1.19 Earmarked for AI / HPC development Uptime to date Mining + HPC PUE
Slide 28: 200MW — estimated delivery timeline
200MW — estimated delivery timeline H2 2024 H1 2025 Development, Procurement, Construction 80MW Delivery ASDC 1 Development, Procurement, Construction 40MW Delivery ASDC 2 Development, Procurement, Construction 80MW Delivery ASDC 3 28
Slide 29: Driver for Application Specific Data Centers (ASDC)
Driver for Application Specific Data Centers (ASDC) Heterogeneous computing architectures drive system scaling and efficiency Compute Domains that benefit from ASDC AI/ML GPU Blockchain ASIC FPGA IOT DPU Scientific Quantum Autonomous Neomorphic Cryptography Homomorphic 29
Slide 30: What is an Application Specific Data Center (ASDC)?
What is an Application Specific Data Center (ASDC)? Designed and Optimized for Exascale computing Ultra High-Power Density Dedicated Large Footprint Lower Cost per MW Rapid Safely run >100kW of equipment per rack. Infrastructure Time to Market More than 1GW of contracted electrical capacity 25,000 –
Slide 31: Core Scientific (ASDC) AI data center at a glance
Core Scientific (ASDC) AI data center at a glance Born in Bitcoin | transformed for AI/HPC – 70 MW two building illustration 100,000 sq/ft Generator Systems Power ZoneASIC – UPS, Battery, SWG Miners 70 – 80 Tech Center/ GPU Zone (inference) Spine ASIC HOTZone AISLE GPU Zone (inference) MW GPU Capaci
Slide 32: Core Scientific (ASDC) data centers compared to conventional data centers
Core Scientific (ASDC) data centers compared to conventional data centers Conventional Colocation Offering1 Core Scientific ASDC Fragmented capacity | small Mostly air-cooled or fragmented Contiguous capacity Water-cooled @ scale footprint <10,000 sq/ft < 5mw’s water cooled 25,000 – 250,000 sq/ft 14
Slide 33: Data center services
Data center services Future-proof operations with world-class data center services Turnkey Rack and GPU 24 x 7 On-site Maintenance Real-Time Monitoring Hardware Installation & Operations Get on-demand access to environmental and operating information relevant to your GPU fleet Our Field Services tea
Slide 34: Experienced team of digital infrastructure experts
Experienced team of digital infrastructure experts Matt Brown Cline K. Angie L. Jay B. Kevin C. EVP Data Center Services SVP Operations Senior Director HPC Operations SVP Data Center Construction VP Field Services & Security Brent N. Colin S. Ron W. David J. Senior Manager Hardware Senior Manager Co
Slide 35: Q&A Session
Q&A SESSION CORE SCIENTIFIC
Slide 36: Core Scientific Highlights Investment Thesis
Core Scientific Highlights Investment Thesis Transforming our hosting Unique digital Efficient capital allocation business to capture significant infrastructure-driven growth opportunity in HPC with opportunity to benefit Unmatched team from data 200MW CoreWeave contracts from explosive HPC center,
Slide 37: Nasdaq: CORZ ir@corescientific.com
Nasdaq: CORZ ir@corescientific.com
Slide 38: Appendix
Appendix CORE SCIENTIFIC
Slide 39: How to exercise tranche 1 warrants
How to exercise tranche 1 warrants If Tranche 1 Warrants are held with a If Tranche 1 Warrants are held book entry at Computershare (rare unless you are an broker/dealer or investment advisor: employee or former employee or holder of restricted stock post emergence) Have your broker contact Deposito
Slide 40: How to exercise tranche 2 warrants
How to exercise tranche 2 warrants CORZ VWAP must equal or exceed $8.72 per share to exercise If Tranche 2 Warrants are held with a If Tranche 2 Warrants are held book entry at Computershare (rare unless you are an broker/dealer or investment advisor: employee or former employee or holder of restric
Slide 41: How to convert convertible notes
How to convert convertible notes Conversion rate is 171.48 shares of Core Scientific Common Stock per $1,000 of principal amount of Note (or $5.8317 per share) Complete and manually sign an Irrevocable Notice of Conversion (Exhibit B to the Indenture) indicating the amount to be converted in increme
Slide 42: 2024 goals and targets
2024 goals and targets EH/s self-mining hash rate 21.8 megawatts of owned operational infrastructure 796 cents per kilowatt hour average fleet power price 4.5 to 4.7 42
Slide 43: Pathway to de-levering balance sheet
Pathway to de-levering balance sheet Conversion/ Exercise/ Shares (M) Debt ($M) Cash ($M) Notes Trigger Price — Actual issued and outstanding Actual 178 $ 608 $ 98 share count as of March 31, 2024 Convertible Notes1 $ 5.83 45 $ (260) — Mandatory conversion at $7.79 Total proceeds of $670M, a portion