Core Scientific, Inc. · NASDAQ:CORZ
Core Scientific — Core Scientific, Inc./tx — Debt Investor Presentation (December 2022)
33 slides from Core Scientific's debt investor presentation, Dec 21, 2022
Slide 1: Core Scientific Creditor Discussion Materials
Exhibit 99.1 Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Core Scientific Creditor Discussion Materials November 30, 2022 Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Mat
Slide 2: Situation Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Situation Overview Core Scientific, Inc. (“Core” or the “Company”) is facing several concurrent challenges in the macroeconomic environment, bringing about exploration of capital
Slide 3: Highly Experienced Management Team
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Highly Experienced Management Team MIKE LEVITT TODD DUCHENE MATT BROWN Co-Chairman and CEO President and Chief Legal Officer EVP, Data Center Operations RUSSELL CANN DARIN FEINSTE
Slide 4: Company Background
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Company Background Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 4
Slide 5: Company Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Company Overview (1) Key Operating Figures Background Average BTC Mined Per Day 45 • Established in December 2017 as a digital asset mining owner-operator, using facilities and so
Slide 6: Market Position
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Market Position Core Scientific is the leading listed Bitcoin miner. 11,629 BTC Self- Mined January – 4,356 4,219 3,622 October 3,197 3,137 2,709 1,812 2022 15.2 (2) 12.5 2022 Yea
Slide 7: Capital Markets Perspectives
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Capital Markets Perspectives Core announced its SPAC transaction in July 2021 CORZ De-SPAC: SPAC Announced: January 20, 2022 July 21, 2021 • Transaction valued Core at $4.3bn • Du
Slide 8: Hosting Operations
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Hosting Operations Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 8
Slide 9: Hosting Operations Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Hosting Operations Overview Core Hosting History Core’s Competitive Positioning • In 2020, access to mining equipment was limited for a variety of • Core has positioned itself as
Slide 10: Hosting Operations Overview (Cont'd)
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Hosting Operations Overview (Cont’d) Core Hosting Customer Base Hosting Focus • Core is focused on maintaining and building stable hosting relationships (1) (1) Customer Miners MW
Slide 11: Celsius Dispute
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Celsius Dispute Core and Celsius Network LLC (“Celsius”) have been engaged in litigation over the past few months, with Celsius refusing to pay post- petition power pass-through c
Slide 12: Self-Mining Operations
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Self-Mining Operations Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 12
Slide 13: Self-Mining Operations Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Self-Mining Operations Overview (1) In addition to Hosting, the Company has participated in self-mining since inception Key Self-Mining Operating Figures • Self-mining’s share of
Slide 14: Self-Mining Equipment Financing Perspective
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Self-Mining Equipment Financing Perspective Of Core’s 184K self-mining rigs (inclusive of 32K incremental miners anticipated to be deployed by April 2023), 91K are owned under var
Slide 15: General Operations
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT General Operations Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 15
Slide 16: Facilities Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Facilities Overview Current Operational 2 Location Type of Transaction Land (acres) Capacity Buildings (ft ) Status (1) (in MWs) Marble, NC Owned 70 104 +/- 250,000 At Capacity Da
Slide 17: Power Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Power Overview Power History MW Capacity by Facility • Core has rapidly scaled power consumption, especially in Texas 900 814 • Texas facilities have no minimum usage requirement,
Slide 18: Power Background by Facility
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Power Background by Facility Current Operational Total Available Capacity Facility Location Power Company Term / Expiration Capacity (MW) (MW) Marble 1 Marble, NC 35 35 TVA-Murphy
Slide 19: Expansion Overview
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Expansion Overview Denton Expansion • Denton build-out in process throughout 2022, with 125MW of current capacity • Core anticipates expanding the Denton site • Denton expansion a
Slide 20: Near-Term Liquidity
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Near-Term Liquidity Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 20
Slide 21: 13-Week Cash Flow Forecast Assumptions
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT 13-Week Cash Flow Forecast Assumptions Description > Based on actual performance through November 13, 2022 and underlying business plan thereafter Self-Mining Proceeds > Assumes s
Slide 22: 13-Week Cash Flow Forecast
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT (1) 13-Week Cash Flow Forecast Filing Exit Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Week Starting 11/14/2022 11/
Slide 23: Business Plan
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Business Plan Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFIDENTIAL 23
Slide 24: Business Plan Background & Strategy
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Business Plan Background & Strategy > Assumes 165K self-miners beginning in January 2023, growing to 184K self-miners by April 2023 Self-Miners > All BTCs produced assumed to be s
Slide 25: Business Plan Assumptions
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Business Plan Assumptions BTC Price > $16,500 post-emergence Miners > 143K miners in October 2022 increasing to 184K by April 2023 Self-Mining Avg. Miner Hash Rate (TH/s) > 98.5 T
Slide 26: Business Plan Key Takeaways
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Business Plan Key Takeaways ADJUSTED EBITDA UNLEVERED FREE CASH FLOW $250 $250 $200 $200 $134 $142 $141 $133 $150 $150 $130 $100 $100 $64 $50 $50 $0 $0 2023 2024 2025 2023 2024 20
Slide 27: Business Plan Monthly Liquidity
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT (1) Business Plan Monthly Liquidity ($ in millions , unless specified otherwise) Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24
Slide 28: Appendix Additional Company Information
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Appendix Additional Company Information Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONF
Slide 29: Capital Structure
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Capital Structure ($ in millions) Maturity Interest Rate Amount Outstanding LTM Leverage Total Interest Convertible Notes Tranche 1 Apr-25 10.0%⁽¹⁾ $234 $23 Convertible Notes Tran
Slide 30: Organizational Structure
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Organizational Structure DE ABD Symbol Legend Core Scientific, Inc. (fka Power & Digital Cores Scientific, Inc. – Borrower under the B. Riley Notes Acquisition Corp.) Branch (Abu
Slide 31: Appendix Key Market Data & Statistics
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Appendix Key Market Data & Statistics Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT PROPRIETARY & CONFID
Slide 32: Historical BTC Prices / Network Hash Rates
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Historical BTC Prices / Network Hash Rates Bitcoin Halving #3: May 11, 2020 350 $80,000 $70,000 300 $60,000 250 $50,000 200 $40,000 150 $30,000 100 $20,000 50 $10,000 0 $0 Jan-20
Slide 33: Hash Price ($ per TH/s-day)
Subject to FRE 408 and its Equivalents Prepared at the Request of Counsel Preliminary & Subject to Material Change DRAFT Hash Price ($ per TH/s-day) Bitcoin Halving #3: May 11, 2020 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Ja
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