Slide 1: Fiscal Fourth Quarter and Full Year 2023 Earnings Presentation
Fiscal Fourth Quarter and Full Year 2023 Earnings Presentation Adam Sullivan, CEO Denise Sterling, CFO MARCH 12, 2024 1 MAR 12, 2024
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: Leading the industry in North American bitcoin mining
Leading the industry in North American bitcoin mining . 2021 2022 2023 5,000 10,000 15,000 20,000 25,000 30,000 35,000 ARGO 2,045 2,157 1,760 BI TFARMS 3,452 5,168 4,928 CLEAN SPARK 4,621 7,391 CORE SCIENTIFIC 5,769 14,438 13,762 HIVE 3,260 3,205 HUT 8 2,786 3,536 2,159 IRIS ENERGY 2,295 4,123 MARAT
Slide 4: Core Scientific 2023 Snapshot
Core Scientific 2023 Snapshot Strategic Operational Financial • 724 MW of owned, energized • Earned 13,762 self-mined bitcoin • $502 million revenue infrastructure • 16.9 EH/s self-mining energized hash • $(247) million net loss – includes • Additional 372 MW of partially rate $191 million bankruptc
Slide 5: Core Scientific transforms energy into high-value compute with superior efficiency at scale
Core Scientific transforms energy into high- value compute with superior efficiency at scale 5 MAR 12, 2024 MAR 12, 2024
Slide 6: 724 Megawatts of Largest Owned Infrastructure Capacity
Marble, NC Dalton, GA 104 MW 145 MW Dalton, GA 50 MW Calvert City, KY 150 MW 724 Megawatts Grand Forks, ND 100 MW Largest Owned Infrastructure Capacity 2023 Average Power Cost $0.044/kWh Denton, TX Pecos, TX (Cottonwood) 125 MW1 50 MW2 6 MAR 12, 2024 1 72 MW expansion MAR 12, 2024 planned for 2024 2
Slide 7: Restructuring positioned Core Scientific for success
Restructuring positioned Core Scientific for success Stronger balance sheet & Reduced operating Positioned Company for pathway to de-lever further expenses, implemented successful emergence, hedging strategy on power paid off DIP financing, over- to manage downside risk subscribed Equity Rights Offe
Slide 8: Consistently higher hash rate utilization than peer averages
Consistently higher hash rate utilization than peer averages 100 Hash Rate Utilization: Bitcoin Mined per Energized Exahash Self-mined Bitcoin per Two-Month Average 88.48 90 85.98 80.83 80 78.99 80.41 79.75 72.88 73.33 Energized Hash Rate Capacity 75.28 68.9 76.43 76.1 68.13 70 70.7 64.12 64.12 62.9
Slide 9: Preparations for the halving
Preparations for the halving Deploying Upgraded Optimized Implemented Conducted new bitcoin proprietary fleet power scenario miners firmware performance hedging planning • Expands hash rate • Manages fleet • Reallocated miners • Protect against • Developed detailed to different sites upward power pr
Slide 10: High-performance computing hosting
High-performance computing hosting CoreWeave Contract Highlights • Upgrading Austin, TX data center formerly housing HP • Providing up to 16 MW Why Core infrastructure Benefits to Core Scientific? • Total revenue more than Scientific • Hosted GPUs from 2019 $100 million over multi-year to 2022 • Sta
Slide 11: Financial summary
Financial summary 11 MAR 12, 2024
Slide 12: Segment analysis
Segment analysis 2023 Revenue Mix Revenue by Segment Gross Margin by Segment (Unaudited) (In Millions, Unaudited) (Unaudited) $83 24% $160 $112 25% 22% 76% $398 $390 1% 2% Self-Mining 2022 2023 Self-Mining Hosting Hosting Self-Mining Hosting Equipment Sales 2022 2023 12 MAR 12, 2024
Slide 13: Self-mining fleet composition (as of 12/31/23)
Self-mining fleet composition (as of 12/31/23) S19 (34.2 J/TH) Antminer S19j XP Antminer S19 S19j XP 16% 13% (21.5 J/TH) Antminer S19 Pro & S19j Pro S19 Pro and S19j Pro 71% (29.5 J/TH) 13 MAR 12, 2024
Slide 14: Debt at emergence (Jan 24, 2024)
Debt at emergence (Jan 24, 2024) ($ in millions) Outstanding Principal Amount New Delayed Draw Term Loan $61 New Secured Notes 150 Miner Equipment Loans 53 Other Debt 84 Total Non-Convertible Debt $348 New Secured Convertible Notes 260 Total Debt $608 14 MAR 12, 2024
Slide 15: Post-emergence debt
Post-emergence debt Exit Delayed Draw New Secured New Secured Miner Equipment Terms Term Loan Notes Convertible Notes Debt (Election 2) $80 million ($40 million roll- Facility Size up, $40 million new money, $150 million $260 million $53 million $19 million undrawn) 3.0% cash / 10.0% PIK 6.0% cash /
Slide 16: Pathway to de-levering balance sheet
Pathway to de-levering balance sheet Conversion/ Exercise/ Shares (M) Debt ($M) Cash ($M) Notes Trigger Price Actual issued and Actual - 177 $ 608 $ 83 outstanding share count as of March 7, 2024 Mandatory conversion at Convertible Notes1 $ 5.83 45 $ (260) - $7.79 Total proceeds of $670M, a Tranche
Slide 17: Debt service $71 million in 2024; amortization weighted to 2027-2029
Debt service $71 million in 2024; amortization of principal weighted heavily to 2027 - 2029 (in $millions) 354 Interest New Delayed Draw Term Loan 189 New Secured Notes 23 350 New Secured Convertible Notes1(if not converted) 125 Miner Equipment Loans 90 Other Debt 71 42 64 150 48 40 56 45 5 24 31 19
Slide 18: Cost to self-mine a bitcoin in 2023
Cost to self-mine1 a bitcoin in 2023 Cash Cost Per Bitcoin1 Cash-Based Hash Cost2 Power Cost $ 12,528 3.33¢ Operational Cost3 $ 2,454 0.65¢ Cash to Mine a BTC $ 14,982 3.98¢ 1 Represents our direct, cash costs of power and facilities operations based on our self-mining/hosting mix as of 12/31/23 div
Slide 19: Well positioned for continued market leadership
Well positioned for continued market leadership Earned more Own 724 MW of Multi-year bitcoin than any infrastructure - growth plan for other company total of 25.2 more than 20 in 2021-2023 EH/s1 EH/s Diversifying hosting Plan for de- customer base levering into high- balance sheet performance comput
Slide 20: Thank you!
Thank you! Investor Relations Leader in bitcoin (737) 931-1351 mining and digital ir@corescientific.com Corescientific.com infrastructure for emerging high- value compute
Slide 21: Appendix
Appendix 21 MAR 12, 2024
Slide 22: Selected quarterly financial results (unaudited)
Selected quarterly financial results (unaudited) (dollars in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 FY 2022 FY 2023 vs 2022 Total revenue: Hosting revenue $ 22,629 $ 23,435 $ 20,766 $ 19,663 $ 86,493 $ 159,688 $ (73,195) Proceeds sharing - 6,395 9,083 10,096 25,574 - 25,574 Equipment sal
Slide 23: Adjusted EBITDA reconciliation
Adjusted EBITDA reconciliation (dollars in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 FY 2022 FY 2023 vs 2022 Net Income (Loss) $ (388) $ (9,260) $(41,147) $ (195,692) $ (246,487) $ (2,146,318) $ 1,899,832 Adjustments: (Gain) Loss on Debt Extinguishment (20,761) - (373) 1,069 (20,065) 287 (2