Core Scientific, Inc./tx 10-Q

Item 1A. Risk Factors For a discussion of our risk factors, see the section titled “Risk Factors” under Part I, Item1A. — “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the United States Securities and Exchange Commission on March 13, 2024, and under Part II, Item 1A. in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which was filed with the United States Securities and Exchange Commission on August 7, 2024. There have been no material changes in our risk factors from those disclosed under the caption Item 1A. — “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 or in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, except as set forth below. The risks identified in our Annual Report on Form 10-K that refer to or are associated with “hosting” and its variations (and corresponding industries and services) should be read as being applicable to both “Digital Asset Hosted Mining” and “HPC Hosting,” as appropriate in light of the circumstances. In addition to the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, the Company has identified the following additional risk factors given the division of our prior “Hosting” segment into the current (as of this Quarterly Report on Form 10-Q) “Digital Asset Hosted Mining” and “HPC Hosting” segments due to our expansion into providing additional HPC hosting services, as well as changes to our status as an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Our HPC business strategy may not perform as planned. We believe the potential for HPC hosting complements our current business model with expected stable, long-term and high margin revenue. We also believe that using our existing infrastructure for HPC customers provides more consistent dollar-based revenue and substantially less risk than our traditional bitcoin mining customers or our bitcoin self-mining operations. However, our success in the HPC Hosting segment may not develop as anticipated, and may be affected by factors such as the reliability and timing of power supply, supply chain disruption (including local labor availability) and changes in in-house specialized expertise to manage the business. Our HPC business strategy may not perform as planned.