Core Scientific, Inc./tx (NASDAQ: CORZ)

Core Scientific Inc designs builds and operates large scale purpose built data centers that support high density colocation services and digital asset mining for both its own account and to a lesser extent third party customers The company focuses on power intensive mission critical computing workloads with an emphasis on artificial intelligence and other high performance computing applications As of December 31 2025 it owned or leased ten data centers across seven U S states representing approximately 1 4 gigawatts of gross utility power capacity or approximately 920 megawatts of total leasable customer power capacity

Core Scientific generates revenue through three primary streams The company earns digital assets for its own account through self mining operations It provides hosting services to third parties for digital asset mining under recurring electricity based consumption contracts Additionally it delivers high density colocation services to third party customers for AI and HPC operations charging fixed payments based on electric capacity and variable payments on a recurring basis Under these arrangements customers pay for leased customer power capacity regardless of utilization under long term take or pay commitments

The company operates through the following segments Colocation Digital Asset Self Mining and Digital Asset Hosted Mining

• The Colocation segment provides space power cooling facilities operations security and other services to third party customers to support workloads for machine learning and artificial intelligence HDC colocation leases may include all or portions of a data center where customers may also lease office space to support their colocation operations with revenue primarily based on power usage as well as square footage.

• The Digital Asset Self Mining segment generates revenue from the deployment and operation of the company s own large fleet of specialized computers or miners within its owned digital infrastructure as part of a pool of users that solve complex cryptographic algorithms to validate transactions conducted on one or more blockchain networks In the Bitcoin network solving a block results in a reward of bitcoin in a process known as mining.

• The Digital Asset Hosted Mining segment generates revenue through the sale of electricity based consumption contracts for hosting services which are recurring in nature The segment provides a full suite of services to digital asset mining customers including deployment monitoring troubleshooting optimization and maintenance of customer equipment and necessary electrical power repair and other infrastructure services required for customers to operate maintain and efficiently mine digital assets.

In the high density colocation market Core Scientific competes with numerous established data center providers including Aligned Data Centers Compass Datacenters Equinix Inc Digital Realty Trust NTT QTS Switch Inc Vantage Data Centers and CyrusOne Inc Many of these competitors are more established have better brand recognition are well capitalized and are organized to take advantage of certain tax benefits lowering their external cost of capital The company believes its experienced data center and engineering leadership team proven ability to rapidly deliver scalable purpose built data centers and cutting edge energy efficient technologies will enable it to compete favorably within the HDC market Additionally Core Scientific competes with other digital asset miners who have signed contracts with AI HPC customers to convert existing digital mining facilities into HDC facilities including Applied Digital Corporation Cipher Mining Inc Galaxy Digital Hut 8 Corp IREN and Terawulf Inc

The company serves third party customers for high density colocation services supporting AI and HPC operations including hyperscale cloud providers AI and other HPC operators and large enterprises with the operational capability to manage hardware and networking at scale For its digital asset hosted mining operations Core Scientific provides hosting services to third party digital asset mining customers who deploy and manage their own hardware while the company designs builds and operates the underlying infrastructure needed to maintain uptime power availability and cooling requirements