Core Scientific, Inc./tx 10-Q

Item 3. Quantitative and Qualitative Disclosures About Market Risk The following discussion about our market risk exposures involves forward-looking statements. Actual results could differ materially from those projected in our forward-looking statements. For more information regarding the forward-looking statements used in this section and elsewhere in this Quarterly Report on Form 10-Q, see the section titled “Cautionary Note Regarding Forward-Looking Statements” included at the forepart of this Quarterly Report on Form 10-Q. Foreign Currency and Exchange Risk The vast majority of our cash generated from revenue is denominated in U.S. dollars. There have been no material changes to the Company’s foreign currency and exchange risk as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. For a discussion of the Company’s exposure to foreign currency and exchange risk, refer to the Company’s foreign currency and exchange risk disclosure set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2024 Annual Report on Form 10-K. Risk Regarding the Price of Bitcoin Our business and development strategy is focused on maintaining and expanding our bitcoin mining operations to maximize the amount of new bitcoin rewards we earn. As of March 31, 2025, we held 977 bitcoin, with a carrying value of $80.6 million, all of which were produced from our bitcoin mining operations. We cannot predict the future market price of bitcoin and, as such, we cannot predict future changes in the carrying value of our bitcoin assets based on future market prices. The future value of bitcoin will affect the amount of revenue recognized from our operations, and any changes in the future value of bitcoin while we hold it in our account would also be reported in our net income (or loss), either of which could have a material adverse effect on the market price for our securities. Bitcoin prices for the three months ended March 31, 2025 ranged from a low of $76,781 to a high of $108,993, with an average price of $93,443. A hypothetical 10% increase or decrease in the price of bitcoin produced during the three months ended March 31, 2025, would have increased or decreased net income by approximately $6.7 million. Commodity Price Risk Certain of our operating costs are subject to price fluctuations caused by the volatility of the underlying commodity prices, including electricity used in our data center operations. From time to time, the Company manages the commodity price risk by 53 entering into derivative instruments to manage the variability in future cash flows from forecasted energy purchases. Management considers energy prices, weather forecasts, forecasted energy purchases, and other factors when determining the extent of its risk management strategy over commodity price risk. There have been no material changes to the Company’s commodity price risk as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. For a discussion of the Company’s exposure to commodity price risk, refer to the Company’s commodity price risk disclosure set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2024 Annual Report on Form 10-K.