Core Scientific, Inc./tx 10-Q/A

Item 1. Financial Statements Core Scientific, Inc. Condensed Consolidated Balance Sheets (in thousands, except par value) September 30, 2025 (As Restated) December 31, 2024 Assets (Unaudited) Current Assets: Cash and cash equivalents $ 453,443 $ 836,197 Restricted cash — 783 Digital assets 241,355 23,893 Customer funding receivable and other current assets 366,235 43,089 Total Current Assets 1,061,033 903,962 Property, plant and equipment, net 954,125 433,473 Operating lease right-of-use assets 107,784 114,472 Other noncurrent assets 48,360 24,039 Total Assets $ 2,171,302 $ 1,475,946 Liabilities and Stockholders’ Deficit Current Liabilities: Accounts payable $ 212,179 $ 19,265 Accrued expenses 358,270 64,670 Deferred revenue 83,739 18,134 Other current liabilities 15,675 32,493 Total Current Liabilities 669,863 134,562 Convertible and other notes payable, net of current portion 1,059,007 1,073,990 Warrant liabilities 1,330,483 1,097,285 Other noncurrent liabilities 364,587 113,158 Total Liabilities 3,423,940 2,418,995 Commitments and contingencies (Note 10) Stockholders’ Deficit: Preferred stock; $ 0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock; $ 0.00001 par value; 10,000,000 shares authorized at September 30, 2025 and December 31, 2024; 308,381 and 292,606 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 3 3 Additional paid-in capital 3,110,021 2,915,035 Accumulated deficit ( 4,362,662 ) ( 3,858,087 ) Total Stockholders’ Deficit ( 1,252,638 ) ( 943,049 ) Total Liabilities and Stockholders’ Deficit $ 2,171,302 $ 1,475,946 Certain prior year amounts have been reclassified for consistency with the current year presentation. See accompanying notes to unaudited condensed consolidated financial statements. 7 Core Scientific, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2025 (As Restated) 2024 2025 (As Restated) 2024 Revenue: Digital asset self-mining revenue $ 57,438 $ 68,138 $ 187,041 $ 328,840 Digital asset hosted mining revenue from customers 8,714 16,878 18,131 71,050 Colocation revenue 14,951 10,338 34,084 15,857 Total revenue 81,103 95,354 239,256 415,747 Cost of revenue: Cost of digital asset self-mining 59,438 74,555 180,197 236,120 Cost of digital asset hosted mining services 6,694 11,914 13,314 49,388 Cost of Colocation services 11,066 9,041 28,602 13,932 Total cost of revenue 77,198 95,510 222,113 299,440 Gross profit (loss) 3,905 ( 156 ) 17,143 116,307 (Increase) decrease in fair value of digital assets ( 10,957 ) 206 ( 30,066 ) 247 Decrease in fair value of energy derivatives — — — 2,757 Loss on disposal of property, plant and equipment 300 509 4,472 4,061 Impairment of property, plant and equipment — — — 97,261 Selling, general and administrative 69,354 40,348 170,851 88,655 Operating loss ( 54,792 ) ( 41,219 ) ( 128,114 ) ( 76,674 ) Non-operating expense (income), net: Loss on debt extinguishment — 317 1,377 487 Interest (income) expense, net ( 821 ) 7,072 ( 4,193 ) 35,934 Change in fair value of warrants and contingent value rights 74,864 408,520 363,358 1,144,441 Reorganization items, net — — — ( 111,439 ) Loss on legal settlements 15,075 356 15,504 2,070 Other non-operating income, net ( 8 ) ( 2,359 ) ( 73 ) ( 1,926 ) Total non-operating expense, net 89,110 413,906 375,973 1,069,567 Loss before income taxes ( 143,902 ) ( 455,125 ) ( 504,087 ) ( 1,146,241 ) Income tax expense 125 134 488 484 Net loss $ ( 144,027 ) $ ( 455,259 ) $ ( 504,575 ) $ ( 1,146,725 ) Net loss per share (Note 13) - basic and diluted $ ( 0.45 ) $ ( 1.17 ) $ ( 1.48 ) $ ( 4.09 ) Weighted average shares outstanding - basic and diluted 318,562 292,486 317,363 253,058 Certain prior year amounts have been reclassified for consistency with the current year presentation. See accompanying notes to unaudited condensed consolidated financial statements. 8 Core Scientific, Inc. Condensed Consolidated Statements of Changes in Stockholders’ Deficit For the Three and Nine Months Ended September 30, 2025 (in thousands) (Unaudited) Common Stock Additional Paid-In Capital Accumulated Deficit Total Stockholders’ (Deficit) Equity Shares Amount Balance at June 30, 2025 (As Restated) 303,146 3 3,026,645 ( 4,218,635 ) ( 1,191,987 ) Net loss — — — ( 144,027 ) ( 144,027 ) Stock-based compensation — — 30,173 — 30,173 Restricted stock awards issued 1,629 — 34 — 34 Restricted stock awards withheld for tax withholding obligations ( 585 ) — ( 9,722 ) — ( 9,722 ) Equity issuance costs — — — — — Exercise of warrants 4,191 $ — 62,891 — 62,891 Balance at September 30, 2025 (As Restated) 308,381 $ 3 $ 3,110,021 $ ( 4,362,662 ) $ ( 1,252,638 ) Common Stock Additional Paid-In Capital Accumulated Deficit Total Stockholders’ (Deficit) Equity Shares Amount Balance at December 31, 2024 292,606 3 2,915,035 ( 3,858,087 ) ( 943,049 ) Net loss — — — ( 504,575 ) ( 504,575 ) Stock-based compensation — — 70,924 — 70,924 Restricted stock awards issued 6,108 — ( 16 ) — ( 16 ) Restricted stock awards withheld for tax withholding obligations ( 585 ) — ( 9,722 ) — ( 9,722 ) Equity issuance costs — — ( 21 ) — ( 21 ) Exercise of warrants 10,252 $ — 133,821 — 133,821 Balance at September 30, 2025 (As Restated) 308,381 $ 3 $ 3,110,021 $ ( 4,362,662 ) $ ( 1,252,638 ) See accompanying notes to unaudited condensed consolidated financial statements. 9 Core Scientific, Inc. Condensed Consolidated Statements of Changes in Stockholders’ Deficit For the Three Months Ended September 30, 2024 (in thousands) (Unaudited) Common Stock Additional Paid-In Capital Accumulated Deficit Total Stockholders’ Deficit Shares Amount Balance at June 30, 2024 187,892 $ 2 $ 1,930,542 $ ( 3,111,679 ) $ ( 1,181,135 ) Net loss — — — ( 455,259 ) ( 455,259 ) Stock-based compensation — — 20,523 — 20,523 Restricted stock awards issued, net of tax withholding obligations 224 — 2 — 2 Exercise of warrants 51,645 1 553,985 — 553,986 Issuance of new common stock for New Secured Convertible Notes conversion 40,060 — 235,227 — 235,227 Balance at September 30, 2024 279,821 $ 3 $ 2,740,279 $ ( 3,566,938 ) $ ( 826,656 ) See accompanying notes to unaudited condensed consolidated financial statements. 10 Core Scientific, Inc. Condensed Consolidated Statements of Changes in Stockholders’ Deficit For the Nine Months Ended September 30, 2024 (in thousands) (Unaudited) Common Stock Additional Paid-In Capital Accumulated Deficit Total Stockholders’ Deficit Shares Amount Balance at December 31, 2023 386,883 $ 36 $ 1,823,260 $ ( 2,420,237 ) $ ( 596,941 ) Cumulative effect of adoption of ASU 2023-08, Accounting for and Disclosure of Crypto Assets — — — 24 24 Balance at December 31, 2023, adjusted 386,883 36 1,823,260 ( 2,420,213 ) ( 596,917 ) Net loss — — — ( 1,146,725 ) ( 1,146,725 ) Stock-based compensation — — 27,957 — 27,957 Cancellation of common stock in connection with emergence ( 386,883 ) ( 36 ) 36 — — Issuance of new common stock in connection with emergence 152,576 2 296,893 — 296,895 Issuance of new common stock under the Equity Rights Offering 15,649 — 55,000 — 55,000 Issuance of new common stock for the Equity Rights Offering backstop commitment 2,111 — 5,475 — 5,475 Issuance of new common stock for Bitmain obligation 10,735 — 27,839 — 27,839 Conversion premium on the issuance of the New Secured Convertible Notes — — 33,202 — 33,202 Issuance of warrants — — ( 345,856 ) — ( 345,856 ) Exercise of stock options — — 9 — 9 Restricted stock awards issued, net of tax withholding obligations 1,624 — ( 3,390 ) — ( 3,390 ) Restricted stock awards forfeited ( 40 ) — — — — Exercise of warrants 51,699 1 554,405 — 554,406 Issuance of new common stock for New Secured Convertible Notes conversion 44,585 — 261,772 — 261,772 Issuance of new common stock for PIK interest 882 — 3,677 — 3,677 Balance at September 30, 2024 279,821 $ 3 $ 2,740,279 $ ( 3,566,938 ) $ ( 826,656 ) See accompanying notes to unaudited condensed consolidated financial statements. 11 Core Scientific, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Nine Months Ended September 30, 2025 (As Restated) 2024 Cash flows from Operating Activities: Net loss $ ( 504,575 ) $ ( 1,146,725 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 54,816 87,164 Losses on disposal of property, plant and equipment 4,472 4,061 Impairment of property, plant and equipment — 97,261 Amortization of operating lease right-of-use assets 8,248 3,802 Stock-based compensation 70,301 27,957 Digital asset self-mining revenue ( 187,396 ) ( 328,840 ) Proceeds from sale of digital assets generated by self-mining and shared hosting revenues 1 — 330,900 (Increase) decrease in fair value of digital assets ( 30,066 ) 247 Decrease in fair value of energy derivatives — ( 2,262 ) Increase in fair value of warrant liabilities 365,041 1,223,775 Decrease in fair value of contingent value rights ( 1,683 ) ( 79,334 ) Loss on debt extinguishment 1,377 487 Amortization of debt discount 4,676 2,362 Non-cash reorganization items — ( 143,791 ) Non-cash PIK interest expense — 3,946 Changes in operating assets and liabilities: Customer funding receivable and other current assets 19,128 ( 1,875 ) Accounts payable ( 17,618 ) ( 11,640 ) Accrued expenses 24,939 ( 44,873 ) Deferred revenue from colocation services 323,796 — Deferred revenue from hosted mining services 2,158 115 Other noncurrent assets and liabilities, net ( 16,874 ) 6,354 Net cash provided by operating activities 120,740 29,091 Cash flows from Investing Activities: Purchases of property, plant and equipment ( 449,752 ) ( 66,203 ) Proceeds from sales of property and equipment 1,929 — Purchase of equity investments ( 5,000 ) — Investments in intangible assets ( 10,160 ) ( 191 ) Net cash used in investing activities ( 462,983 ) ( 66,394 ) Cash flows from Financing Activities: Principal repayments of finance leases ( 1,672 ) ( 5,328 ) Principal payments on debt ( 8,613 ) ( 291,888 ) Debt extinguishment payments ( 26,862 ) — Proceeds from exercise of warrants 1,746 1,913 Taxes paid related to net share settlement of equity awards ( 5,893 ) — Proceeds from the issuance of 3.00 % convertible senior notes, net — 447,609 Issuance costs for 3.00 % convertible senior notes — ( 2,529 ) Proceeds from issuance of new common stock — 55,000 Proceeds from draw from exit facility — 20,000 Restricted stock tax holding obligations — ( 3,390 ) Proceeds from exercise of stock options — 9 Net cash (used in) provided by financing activities ( 41,294 ) 221,396 Net (decrease) increase in cash, cash equivalents and restricted cash ( 383,537 ) 184,093 Cash, cash equivalents and restricted cash—beginning of period 836,980 69,709 Cash, cash equivalents and restricted cash—end of period $ 453,443 $ 253,802 Certain prior year amounts have been reclassified for consistency with the current year presentation. See accompanying notes to unaudited condensed consolidated financial statements. 1 Proceeds from digital assets received as noncash revenue consideration liquidated nearly immediately after receipt as a routine operating activity. 12 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Core Scientific, Inc. (“Core Scientific” or the “Company”) is a leader in digital infrastructure for high-density colocation services and digital asset mining. We operate dedicated, purpose-built facilities for high-density colocation services and are a premier provider of digital infrastructure, software solutions and services to our third-party customers. We employ our own fleet of computers (“miners”) to earn digital assets for our own account and we are in the process of converting most of our existing facilities to support artificial intelligence-related (“AI”) workloads and next generation colocation services. We currently derive the majority of our revenue from earning digital assets for our own account but expect to rapidly increase revenue derived from high-density colocation (“HDC”). We currently intend to repurpose our remaining facilities currently used in our digital asset mining businesses to support our high-density colocation computing services business as circumstances allow and in a manner designed to retain access to electrical power under our control, maximize the value of our digital asset mining equipment to third parties, and fulfill our existing obligations to suppliers and customers. Our facilities are located in Alabama ( 1 ), Georgia ( 2 ), Kentucky ( 1 ), North Carolina ( 1 ), North Dakota ( 1 ), Oklahoma ( 1 ), and Texas ( 3 ). The Company has historically focused on designing, developing and operating digital infrastructure to engage in digital asset mining for its own account and providing hosting solutions for third-party digital asset miners. Beginning on March 6, 2024, we announced a series of new contractual agreements with CoreWeave, Inc. (“CoreWeave”), a third-party provider of cloud-based services for AI and HPC workloads. These new agreements leverage the Company’s existing digital infrastructure and expertise in third-party hosting solutions. We currently operate in three segments: “Digital Asset Self-Mining,” consisting of digital asset mining for our own account, “Digital Asset Hosted Mining,” consisting of our digital infrastructure and third-party hosting services for digital asset mining, and “Colocation,” consisting of providing high-density colocation services to customers employing AI and HPC related workloads. Prior to April 1, 2024, we operated only in the Digital Asset Self-Mining and Digital Asset Hosted Mining segments. During fiscal year 2024, our “Colocation” segment was referred to as “HPC Hosting.” Our digital asset hosted mining business provides a full suite of services to our digital asset mining customers. We provide deployment, monitoring, troubleshooting, optimization and maintenance of our customers’ digital asset mining equipment and provide necessary electrical power, repair and other infrastructure services necessary for our customers to operate, maintain and efficiently mine digital assets. Our high-density colocation services provide space, power, cooling, facilities operations, security and other services to third-party colocation customers to support workloads for machine learning and artificial intelligence. The extension of our business into the Colocation segment involves significant risk, including risks involving facility construction, supply chain and the risk of nonperformance by our single customer, as disclosed further in Part I, Item 1A. — “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission on February 27, 2025. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the unaudited condensed consolidated financial statements. Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. The results for the unaudited interim condensed consolidated statements of operations are not necessarily indicative of results to be expected for the year ending December 31, 2025 or for any future interim period. The unaudited interim condensed consolidated financial statements do not include all the information and notes required by GAAP for complete financial statements. The accompanying unaudited interim financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. 13 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Some of the more significant estimates include assumptions used in property, plant and equipment, the initial measurement of lease liabilities, stock-based compensation, the fair value of derivative liabilities, and income taxes. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include all cash balances and highly liquid investments with original maturities of three months or less from the date of acquisition. As of September 30, 2025 and December 31, 2024, the Company had cash and cash equivalents of $ 453.4 million and $ 836.2 million, respectively, substantially all of which exceeded Federal Deposit Insurance Corporation insured limits. Cash equivalents included $ 449.9 million and $ 832.2 million of highly liquid money market funds as of September 30, 2025 and December 31, 2024. Restricted cash consisted of a deposit held at a lender’s bank in accordance with the terms of a note agreement. Digital Assets The following table presents a roll-forward of total digital assets for the nine months ended September 30, 2025 and 2024 (in thousands): September 30, 2025 September 30, 2024 Digital assets, beginning of period $ 23,893 $ 2,284 Cumulative effect of ASU 2023-08, adopted January 1, 2024 1 — 24 Digital assets, beginning of period, as adjusted 23,893 2,308 Digital asset self-mining revenue, net of receivables 2 187,396 329,799 Mining revenue from shared hosting — 15,693 Proceeds from sales of digital assets and shared hosting — ( 347,397 ) Increase (decrease) in fair value of digital assets 30,066 ( 247 ) Payment of board fee — ( 89 ) Other — ( 67 ) Digital assets, end of period $ 241,355 $ — 1 Reflects the impact of the Company’s adoption of Accounting Standards Update (“ASU”) 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) effective January 1, 2024. 2 As of September 30, 2025 and December 31, 2024, there was $ 0.5 million and $ 0.9 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the condensed consolidated balance sheets. As of September 30, 2024 and December 31, 2023, there was $ 0.7 million and $ 1.7 million, respectively, of digital asset receivable included in prepaid expenses and other current assets on the condensed consolidated balance sheets. The following table presents the Company’s bitcoin holdings (in thousands, except for quantity): Quantity Cost Basis Fair Value September 30, 2025 2,116 $ 212,384 $ 241,355 December 31, 2024 256 $ 24,991 $ 23,893 14 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Property, Plant and Equipment, Net Property, plant, and equipment includes the cost of land, buildings, and improvements for datacenter and support facilities and the Company’s corporate office space. Property and equipment further consists of computer, mining, network, electrical and other equipment, including property and equipment under finance leases. Property, plant and equipment, net is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized at cost and amortized over the shorter of their estimated useful lives or the lease term. Future obligations related to finance leases are presented as Finance lease liabilities, current portion and Finance lease liabilities, net of current portion in the Company’s condensed consolidated balance sheets. Depreciation expense, including amortization of assets held under finance leases, is primarily included in Cost of revenue in the Company’s condensed consolidated statements of operations. Property, plant and equipment capitalized costs include the directly identifiable costs incurred to acquire, construct, install, or otherwise prepare the asset for its intended use and to put it into service. Directly identifiable costs include construction payroll and benefits and other direct capital project costs. When management decides to abandon long-lived assets before the end of their previously estimated useful life, the Company considers whether an impairment of the related asset group has been triggered. If that asset group is no longer recoverable, an impairment is recognized for any excess of the asset group’s carrying value above its fair value. Thereafter, the estimated useful life, salvage value, and prospective depreciation of the affected assets are revised to reflect their shortened remaining useful life. The historical cost of assets, and related accumulated depreciation, are written off at the time that assets are removed from service. Deferred Revenue Deferred revenue from colocation services relate to prepaid base license fees for colocation lease arrangements which are accounted for under Accounting Standards Codification (“ASC”) Topic 842, Leases . Prepaid base license fees relate to capital expenditures on colocation facility site development funded by the customer. Deferred revenue from hosted mining services relates to customer contracts for digital asset hosted mining services which are accounted for under ASC 606, Revenue Recognition (“ASC Topic 606”). Advanced payments are typically recognized in the following month for hosted mining services and are generally recognized within 30 months of license order commencement for colocation services. The following table presents a roll-forward of deferred revenue for the nine months ended September 30, 2025 (in thousands): Deferred Revenue From Colocation Services Deferred Revenue From Hosted Mining Services Total Deferred Revenue Balance at December 31, 2024 $ 17,785 $ 349 $ 18,134 Revenue recognized that was included in the deferred revenue balance as of the beginning of the year ( 4,867 ) ( 330 ) ( 5,197 ) Additional customer funding received 328,663 2,487 331,150 Balance at September 30, 2025 $ 341,581 $ 2,506 $ 344,087 Current portion at September 30, 2025 $ 83,739 Non-current portion at September 30, 2025 1 $ 260,348 1 Noncurrent deferred revenue is included in other noncurrent liabilities on the condensed consolidated balance sheets. Revenue From Contracts With Customers - Digital Asset Self-Mining Revenue The Company recognizes revenue in accordance with ASC Topic 606. One of the Company’s ongoing major or central operations is to provide a service of performing hash calculations to third-party pool operators alongside collectives of third-party bitcoin miners (such collectives, “mining pools”) as a participant. The Company considers the third-party mining pool operators to be its customers under ASC Topic 606. Contract inception and our enforceable right to consideration begins when we commence providing hash calculation services to the mining pool operators. Each party to the contract has the unilateral right to terminate the contract at any time without any compensation to the other party for such termination. As such, the duration of a contract is less than a day and may be continuously renewed multiple times throughout the day. The implied renewal option is not a material right because there are no upfront or incremental fees in the initial contract and the terms, conditions, and compensation amount for the renewal options are at the then market rates. 15 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The Company is entitled to non-cash compensation based on the Full-Pay-Per-Share (“FPPS”) model of the mining pool it is a participant in. FPPS pools pay block rewards and transaction fees, less mining pool fees, and the participants are entitled to non-cash consideration even if a block is not successfully validated by the mining pool operator. The Company is entitled to compensation once it begins to perform hash calculations for the pool operator in accordance with the operator’s specifications over a 24-hour period beginning mid-night UTC and ending 23:59:59 UTC on a daily basis. The non-cash consideration that we are entitled to for providing hash calculations to the pool operator under the FPPS payout method is made up of block rewards and transaction fees less pool operator expenses determined as follows: • The non-cash consideration in the form of a block reward is based on the total blocks expected to be generated on the Bitcoin Network for the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: the daily hash calculations that we provided to the pool operator as a percent of the Bitcoin Network’s implied hash calculations as determined by the network difficulty, multiplied by the total Bitcoin Network block rewards expected to be generated for the same daily period. • The non-cash consideration in the form of transaction fees paid by transaction requestors is based on the share of total actual fees paid over the daily 24-hour period beginning midnight UTC and ending 23:59:59 UTC in accordance with the following formula: total actual transaction fees generated on the Bitcoin Network during the 24-hour period as a percent of total block rewards the Bitcoin Network actually generated during the same 24-hour period, multiplied by the block rewards we earned for the same 24-hour period noted above. • The block reward and transaction fees earned by the Company is reduced by mining pool fees charged by the operator for operating the pool based on a rate schedule per the mining pool contract. The mining pool fee is only incurred to the extent we perform hash calculations and generate revenue in accordance with the pool operator’s payout formula during the same 24-hour period beginning mid-night UTC daily. The above non-cash consideration is variable, since the amount of block reward earned depends on the amount of hash calculations we perform; the amount of transaction fees we are entitled to depends on the actual Bitcoin Network transaction fees over the same 24-hour period; and the operator fees for the same 24-hour period are variable since it is determined based on the total block rewards and transaction fees in accordance with the pool operator’s agreement. While the non-cash consideration is variable, the Company has the ability to estimate the variable consideration at contract inception with reasonable certainty without the risk of significant revenue reversal. The Company does not constrain this variable consideration because it is probable that a significant reversal in the amount of revenue recognized from the contract will not occur when the uncertainty is subsequently resolved and recognizes the non-cash consideration on the same day that control is transferred, which is the same day as contract inception. The Company measures the non-cash consideration using the spot rate for Bitcoin as quoted on Coinbase Global, Inc., the Company’s principal market. The Company recognizes non-cash consideration on the same day that control of the contracted service is transferred to the pool operator, which is the same day as the contract inception. Direct expenses associated with providing hash calculation services to a third-party operated mining pool, such as electricity costs and employee compensation, are recorded as cost of revenues. Depreciation and amortization expenses on fixed and right-of-use assets, including digital asset mining equipment used to provide the services, are also recorded as a component of cost of revenues. Revenue From Contracts With Customers - Digital Asset Hosted Mining Services The Company generates revenue from contracts with customers from digital asset hosted mining services. The Company generally recognizes revenue when the promised service is performed. Revenue excludes any amounts collected on behalf of third parties, including sales and indirect taxes. Hosting Services The Company enters into contracts that include hosting services, for which revenue is recognized as services are performed on a variable basis. The Company performs hosting services that enable customers to run blockchain and other high-performance computing operations. The Company’s performance obligation related to these services is satisfied over time. The Company recognizes revenue for services that are performed on a consumption basis, such as the amount of electricity used in a period, based on the customer’s use of such resources. The Company recognizes variable consumption usage hosting revenue each month as the uncertainty related to the consideration is resolved, hosting services are provided to our customers, and our customers utilize the hosting services (the customer simultaneously receives and consumes the benefits of the Company’s performance). The Company generally bills its customers in advance based on estimated consumption under the contract. The Company recognizes revenue based 16 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements on actual consumption in the period and invoices adjustments in subsequent periods or retains credits toward future consumption. The term between invoicing and when payment is due typically does not exceed 30 days. Revenue Recognition - Colocation Revenue Our Colocation segment generates revenue by leasing data center space to our customer under licensing agreements. These arrangements contain lease components for the right to use data center space and nonlease components for power delivery, physical security, and maintenance services. We have elected the practical expedient available under ASC Topic 842, Leases (“ASC Topic 842”) , to combine the nonlease revenue components that have the same pattern of transfer as the related operating lease components into a single combined component. The single combined component is accounted for under ASC Topic 842 as an operating lease if the lease components are the predominant components and is accounted for under ASC Topic 606 if the nonlease components are the predominant components. The lease components are the predominant components in our current licensing arrangements and the single combined component in these arrangements are accounted for under the operating lease guidance of ASC Topic 842. Recognition of Colocation lease revenue begins when we determine the asset has been made available for the customer’s use. We have concluded that it is probable that substantially all of the payments will be collected over the term of the arrangements and recognize the total combined component license payments under the agreements on a straight-line basis over the non-cancellable term. Straight-line license revenue represents the difference in revenue recognized during the period and the license payments due pursuant to the underlying arrangement as deferred revenue in the condensed consolidated balance sheets. Certain arrangements include options to extend the term. These extension options are not reasonably certain to be exercised and are excluded from the lease term and calculation of lease payments at lease commencement. We commence recognition of lease revenue when the underlying space is available for the customer’s exclusive use. This is determined by the facts and circumstances surrounding each commencement, considering ability to utilize rated energy for the space and control over the space, among other considerations. Certain licensing arrangements provide for variable payments for power delivery services and maintenance services on customer assets and reimbursements for lessor costs such as taxes. Payments for physical security and other routine maintenance services are included in the fixed lease payments. Power delivery services represent a stand ready obligation to make power available to the customer over the coterminous lease term and have the same pattern of transfer as the related operating lease components. Customers may request and the Company may provide maintenance services on customer assets during the coterminous lease term. Customers are charged monthly for fees incurred on these maintenance services delivered and actual power costs incurred at current utility or fuel cost rates. These payments from customers for power delivery and maintenance services are recognized as variable lease payments in accordance with the practical expedient elected. Variable lease payments are presented on a gross basis and are included in Colocation revenue in the condensed consolidated statements of operations. Performance Obligations As of September 30, 2025, the Company had no outstanding performance obligations for contracts with original terms exceeding one year. Stock Based Compensation The Company grants performance and market conditioned restricted stock units (“PSUs”) to certain executives as part of its long-term equity compensation program. Each PSU has service conditions and either market or performance conditions that are subject to respective graded vesting schedules. Each tranche in the respective graded vesting schedule is a separate award for accounting purposes and the Company applies the accelerated attribution method to recognize compensation expense. Compensation expense is recognized over the longer of the explicit service period or the performance measurement period of each tranche. PSU tranches with market conditions, such as the relative total shareholder return (“RTSR”) metric, are measured on the grant date using a Monte Carlo simulation model. PSU tranches with performance conditions are measured using the grant date fair value of the Company’s common stock and are expensed only when the performance condition is deemed probable of achievement. The Company reassesses the probability of achieving performance conditions at each reporting date and adjusts for actual forfeitures as they occur. 17 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Recently Adopted Accounting Standards In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) . Under this ASU, public business entities must annually “(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate).” The amendments in ASU 2023-09 will be applied on a prospective basis and are effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 as of January 1, 2025 and will reflect the required disclosures in its Annual Report on Form 10-K for the year ending December 31, 2025. The adoption of ASU 2023-09 affects annual income tax disclosures only and does not impact interim reporting. Accounting Standards Not Yet Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The amendment should be applied prospectively; however, retrospective application is also permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements and related disclosures. There are no other new accounting pronouncements that are currently expected to have a significant impact on the Company’s unaudited condensed consolidated financial statements. 3. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS During the preparation of the consolidated financial statements for the year ended December 31, 2025, the Company determined that property, plant and equipment was overstated as a result of the improper continued capitalization of carrying values of assets committed to demolition in connection with the conversion of certain facilities from digital asset mining operations to high-performance computing colocation infrastructure, which impacted the Company’s previously issued consolidated financial statements as of and for the year ended December 31, 2024, as well as the condensed consolidated financial statements as of and for the three and six months ended June 30, 2024, the three and nine months ended September 30, 2024, the three months ended March 31, 2025, the three and six months ended June 30, 2025, and the three and nine months ended September 30, 2025. Specifically, the carrying values of assets committed to demolition were improperly capitalized rather than being written down to fair value through the recognition of impairment charges in the periods in which the commitment to demolish was made. The Company assessed the materiality of the errors, individually and in the aggregate, and concluded that the errors were material to the previously issued consolidated financial statements and condensed consolidated financial statements set forth above and such previously issued financial statements should no longer be relied upon. As a result, the Company is restating herein its previously issued condensed consolidated financial statements for the three and nine months ended September 30, 2025. The cumulative impact of the errors on the condensed consolidated balance sheet as of September 30, 2025 resulted in an overstatement of property, plant and equipment, net of approximately $ 124.7 million and a corresponding understatement of accumulated deficit of the same amount. The impact on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025 was an overstatement of loss on disposal of property, plant and equipment of approximately $ 2.6 million for the three and nine months ended September 30, 2025, and an understatement of selling, general and administrative expense of approximately $ 4.4 million for the nine months ended September 30, 2025. The restatement had no impact on total net cash flows; however, the correction resulted in a reclassification from capital expenditures within investing activities to operating activities. The restatement had no impact on revenue, cost of revenue, or income tax expense. There was no income tax expense effect as the Company maintains a full valuation allowance against its net deferred tax assets. 18 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The following tables present the impact of the restatement on the affected line items of the Company’s previously issued condensed consolidated financial statements (in thousands, except per share amounts): Condensed Consolidated Balance Sheets September 30, 2025 (Unaudited) As Reported Adjustment As Restated Assets Property, plant and equipment, net $ 1,078,803 $ ( 124,678 ) $ 954,125 Total Assets 2,295,980 ( 124,678 ) 2,171,302 Liabilities and Stockholders’ Deficit Stockholders’ Deficit: Accumulated deficit ( 4,237,984 ) ( 124,678 ) ( 4,362,662 ) Total Stockholders’ Deficit ( 1,127,960 ) ( 124,678 ) ( 1,252,638 ) Total Liabilities and Stockholders’ Deficit $ 2,295,980 $ ( 124,678 ) $ 2,171,302 Condensed Consolidated Statements of Operations For the Three Months Ended September 30, 2025 For the Nine Months Ended September 30, 2025 As Reported Adjustment As Restated As Reported Adjustment As Restated (Unaudited) (Unaudited) (Unaudited) (Unaudited) Loss on disposal of property, plant and equipment $ 2,933 $ ( 2,633 ) $ 300 $ 7,105 $ ( 2,633 ) $ 4,472 Selling, general and administrative 69,354 — 69,354 166,409 4,442 170,851 Operating loss ( 57,425 ) 2,633 ( 54,792 ) ( 126,305 ) ( 1,809 ) ( 128,114 ) Loss before income taxes ( 146,535 ) 2,633 ( 143,902 ) ( 502,278 ) ( 1,809 ) ( 504,087 ) Net loss $ ( 146,660 ) $ 2,633 $ ( 144,027 ) $ ( 502,766 ) $ ( 1,809 ) $ ( 504,575 ) Net loss per share, basic and diluted $ ( 0.46 ) $ 0.01 $ ( 0.45 ) $ ( 1.48 ) $ — $ ( 1.48 ) Condensed Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2025 As Reported Adjustment As Restated (Unaudited) (Unaudited) Cash flows from Operating Activities: Net loss ( 502,766 ) ( 1,809 ) ( 504,575 ) Losses on disposal of property, plant and equipment $ 7,105 ( 2,633 ) 4,472 Net cash (used in) provided by operating activities $ 125,182 $ ( 4,442 ) 120,740 Cash flows from Investing Activities: Purchases of property, plant and equipment ( 454,194 ) 4,442 ( 449,752 ) Net cash used in investing activities $ ( 467,425 ) $ 4,442 ( 462,983 ) 19 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Statements of Stockholders’ Deficit The impact of the restatement on the Company’s condensed consolidated statements of stockholders’ deficit is limited to the effect on accumulated deficit, as reflected in the condensed consolidated balance sheet table above. There was no impact to additional paid-in capital, common stock, or any other component of stockholders’ deficit. 4. PROPERTY, PLANT, AND EQUIPMENT Property, plant and equipment, net as of September 30, 2025 and December 31, 2024 consist of the following (in thousands): September 30, 2025 (As Restated) December 31, 2024 Estimated Useful Lives Land and improvements 1 $ 21,769 $ 17,215 20 years Building and improvements 209,710 186,267 10 to 39 years Mining and network equipment 389,971 413,296 3 to 5 years Electrical equipment 73,949 74,077 15 years Other property, plant and equipment 2,967 2,764 5 to 7 years Total 698,366 693,619 Less: accumulated depreciation and amortization 401,237 372,112 Total 297,129 321,507 Add: Construction in progress 656,996 111,966 Property, plant and equipment, net $ 954,125 $ 433,473 1 Estimated useful life of improvements. Land is not depreciated. Depreciation expense for the three months ended September 30, 2025 and 2024, was $ 16.1 million and $ 28.5 million, respectively, and for the nine months ended September 30, 2025 and 2024, was $ 54.3 million and $ 86.6 million, respectively. During the three months ended September 30, 2025 and 2024, $ 35.4 million and $ 0.4 million, respectively, of construction in progress was placed into service. During the nine months ended September 30, 2025 and 2024, $ 47.5 million and $ 140.3 million, respectively, of construction in progress was placed into service. 5. BALANCE SHEET COMPONENTS Customer funding receivable and other current assets as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands): September 30, 2025 December 31, 2024 Customer funding receivable $ 343,085 $ 7,442 Other 23,150 35,647 Total customer funding receivable and other current assets $ 366,235 $ 43,089 Customer funding receivable represents amounts due from our customer for construction related payables and accrued expenses incurred on their behalf. The Company collects these amounts from the customer prior to payment to vendors. As of September 30, 2025, approximately $ 220.0 million of the related obligations were included in accrued expenses and approximately $ 123.1 million were included in accounts payable. 20 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Accrued expenses as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands): September 30, 2025 December 31, 2024 Accrued customer funded construction $ 220,036 $ — Accrued capital expenditures 67,142 12,106 Accrued bonus 34,616 17,614 Other 36,476 34,950 Total accrued expenses $ 358,270 $ 64,670 Other noncurrent liabilities as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands): September 30, 2025 December 31, 2024 Noncurrent deferred revenue $ 260,348 $ — Operating lease liabilities, net of current portion 90,869 97,843 Other 13,370 15,315 Total other noncurrent liabilities $ 364,587 $ 113,158 Noncurrent deferred revenue represents prepaid base license fees from our Colocation customer. 6. LEASES Lessee Accounting The components of operating and finance leases are presented on the Company’s condensed consolidated balance sheets as follows (in thousands): Financial statement line item September 30, 2025 December 31, 2024 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 107,784 114,472 Finance lease right-of-use assets Property, plant and equipment, net $ — 5,873 Liabilities: Operating lease liabilities, current portion Other current liabilities $ 11,353 9,974 Operating lease liabilities, net of current portion Other noncurrent liabilities $ 90,869 97,843 Finance lease liabilities, current portion Other current liabilities $ — 1,669 21 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The components of lease expense were as follows (in thousands): Three Months Ended September 30, Financial statement line item 2025 2024 Operating lease expense Cost of Colocation services $ 3,412 $ 4,833 Operating lease expense Cost of digital asset self-mining 79 106 Operating lease expense Cost of digital asset hosted mining services 11 22 Operating lease expense Selling, general and administrative expenses 1,297 ( 1,133 ) Short-term lease expense Cost of digital asset self-mining 318 68 Variable lease expense Cost of Colocation services 304 — Finance lease expense: Amortization of right-of-use assets Cost of digital asset self-mining 101 231 Interest on lease liabilities Interest expense, net 11 91 Total finance lease expense 112 322 Total lease expense $ 5,533 $ 4,218 Nine Months Ended September 30, Financial statement line item 2025 2024 Operating lease expense Cost of Colocation services $ 10,221 $ 7,930 Operating lease expense Cost of digital asset self-mining 240 302 Operating lease expense Cost of digital asset hosted mining services 25 78 Operating lease expense Selling, general and administrative expenses 3,722 1,025 Short-term lease expense Cost of digital asset self-mining 943 262 Variable lease expense Cost of Colocation services 877 — Finance lease expense: Amortization of right-of-use assets Cost of digital asset self-mining 497 880 Interest on lease liabilities Interest expense, net 90 1,132 Total finance lease expense 587 2,012 Total lease expense $ 16,615 $ 11,609 Information relating to the lease term and discount rate is as follows: September 30, 2025 September 30, 2024 Weighted Average Remaining Lease Term (Years) Operating leases 7.8 6.9 Finance leases 0.0 1.0 Weighted Average Discount Rate Operating leases 8.5 % 9.3 % Finance leases — % 12.5 % 22 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Information relating to lease payments is as follows (in thousands): Nine Months Ended September 30, 2025 2024 Lease Payments Operating cash flows from operating leases $ 12,512 $ 5,414 Operating cash flows from finance leases $ 82 $ 1,819 Financing cash flows from finance leases $ 1,672 $ 5,328 Supplemental Noncash Information Operating lease right-of-use assets obtained in exchange for lease obligations $ 2,154 $ 70,690 Decrease in operating right-of-use assets due to lease modification $ ( 593 ) $ — The Company’s minimum payments under noncancelable operating leases having initial terms and bargain renewal periods in excess of one year are as follows at September 30, 2025, and thereafter (in thousands): Operating Leases Remaining 2025 $ 4,750 2026 19,631 2027 20,064 2028 20,405 2029 20,754 Thereafter 54,318 Total lease payments 139,922 Less: imputed interest 37,700 Total $ 102,222 Lessor Accounting We generate revenue by leasing property to a customer under licensing agreements. The manner in which we recognize these transactions in our financial statements is described in Note 2 — Summary of Significant Accounting Policies, Revenue Recognition — Colocation Revenue . The components of lease revenue were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Lease Revenue Operating lease revenue $ 9,848 $ 7,806 $ 22,853 $ 11,625 Variable lease revenue 5,103 2,532 11,231 4,232 Total lease revenue $ 14,951 $ 10,338 $ 34,084 $ 15,857 23 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The following table represents the maturity analysis of commenced minimum operating lease payments expected to be received at September 30, 2025, and thereafter (in thousands): Operating Leases (1) Remaining 2025 $ 10,203 2026 38,520 2027 39,748 2028 54,614 2029 58,476 Thereafter 317,899 Total $ 519,460 (1) Operating lease payments expected to be received excludes $ 9.55 billion in total future noncancellable minimum lease payments for operating leases that have not yet commenced at September 30, 2025, which have initial lease terms of 12 years from commencement. 7. CONVERTIBLE AND OTHER NOTES PAYABLE Notes payable as of September 30, 2025 and December 31, 2024, consists of the following (in thousands): Stated Interest Rate Effective Interest Rates Maturities September 30, 2025 December 31, 2024 Convertible Notes: 2031 Convertible Notes — % 0.4 % 2031 625,000 625,000 2029 Convertible Notes 3.0 % 3.7 % 2029 460,000 460,000 Equipment and Settlement: Bremer loan 5.5 % 5.5 % 2027 — 10,669 Didado note 5.0 % 15.0 % 2027 — 8,964 HMC note 5.0 % 15.0 % 2026 — 9,042 Harper note 5.0 % 15.0 % 2026 — 3,119 Trilogy note 5.0 % 15.0 % 2026 — 2,107 Other: ACM note — % 15.0 % 2025 621 3,023 Other 7.1 % - 7.7 % 7.1 % - 7.7 % 2025 — 129 Notes payable 1,085,621 1,122,053 Less: Unamortized discounts 25,993 31,773 Total notes payable, net 1,059,628 1,090,280 Less: current portion 1 621 16,290 Convertible and other notes payable, net of current portion $ 1,059,007 $ 1,073,990 1 The current portion is included in Customer funding receivable and other current assets on the consolidated balance sheet. During the nine months ended September 30, 2025, the Company fully repaid five higher-interest debt facilities, including the Bremer loan, Didado note, HMC note, Harper note, and Trilogy note, totaling approximately $ 26.6 million in principal. The repayment resulted in an aggregate of $ 1.4 million loss on debt extinguishment. 24 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Interest expense on the 2029 Convertible Notes and 2031 Convertible Notes (together “Convertible Notes”) was as follows (in thousands): Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 Coupon interest $ 3,450 $ 10,350 Amortization of debt discount and issuance costs 1,311 3,912 Total $ 4,761 $ 14,262 Maturities on convertible and other notes payable, gross of unamortized discounts, are as follows (in thousands): Convertible Notes Other Notes Payable Remaining 2025 $ — $ 621 2026 — — 2027 — — 2028 — — 2029 460,000 — Thereafter 625,000 — Total $ 1,085,000 $ 621 8. WARRANT LIABILITIES Warrant Agreement On January 23, 2024, the Company entered into a warrant agreement (the “Warrant Agreement”) providing for the issuance of 98,313,313 warrants, each exercisable for one share of New Common Stock at an exercise price of $ 6.81 per share (the “Tranche 1 Warrants”), and 81,927,898 warrants, each exercisable for one share of New Common Stock at an exercise price of $ 0.01 per share (the “Tranche 2 Warrants” and, together with the Tranche 1 Warrants, the “Warrants”). The Tranche 1 Warrants expire on January 23, 2027, and the Tranche 2 Warrants expire on January 23, 2029. During the three and nine months ended September 30, 2025, 0.1 million and 0.3 million Tranche 1 Warrants were exercised, respectively, which resulted in cash receipts of $ 1.1 million and $ 1.7 million. As of September 30, 2025, there were 97.4 million unexercised Tranche 1 Warrants. During the three and nine months ended September 30, 2025, 4.0 million and 10.0 million Tranche 2 Warrants were exercised, respectively, which resulted in immaterial cash receipts. As of September 30, 2025, there were 11.0 million unexercised Tranche 2 Warrants. 9. FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements During the three and nine months ended September 30, 2025, a decrease in fair value of contingent value rights of $ 0.8 million and $ 1.7 million, respectively, was included in Change in fair value of warrant and contingent value rights on the Company’s condensed consolidated statements of operations. During the three and nine months ended September 30, 2025, an increase in fair value of Warrants of $ 75.6 million and $ 365.0 million, respectively, was included in Change in fair value of warrant and contingent value rights on the Company’s condensed consolidated statements of operations. 25 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Fair value Assets: Cash and cash equivalents Money market funds $ 449,911 $ — $ — $ 449,911 Digital assets 241,355 — — 241,355 Total assets measured at fair value on a recurring basis $ 691,266 $ — $ — $ 691,266 Liabilities: Contingent value rights 1 $ 2,589 $ — $ — $ 2,589 Warrants 1,330,483 — — 1,330,483 Total liabilities measured at fair value on a recurring basis $ 1,333,072 $ — $ — $ 1,333,072 1 The fair value of contingent value rights is included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets, based on the expected timing of settlement. The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands): Fair Value Hierarchy Level 1 Level 2 Level 3 Fair value Assets: Cash and cash equivalents Money market funds $ 832,213 $ — $ — $ 832,213 Digital assets 23,893 — — 23,893 Total assets measured at fair value on a recurring basis $ 856,106 $ — $ — $ 856,106 Liabilities: Contingent value rights 1 $ 4,272 $ — $ — $ 4,272 Warrants 1,097,285 — — 1,097,285 Total liabilities measured at fair value on a recurring basis $ 1,101,557 $ — $ — $ 1,101,557 1 The fair value of contingent value rights is included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets, based on the expected timing of settlement. 26 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Financial Instruments Not Carried at Fair Value The Convertible Notes are recorded at amortized cost in the condensed consolidated balance sheets. The fair value is disclosed for informational purposes only in accordance with ASC Topic 825-10, Financial Instruments, and is determined using trading activity in over-the-counter markets. The following tables present the carrying amounts and estimated fair values of the Convertible Notes as of September 30, 2025 and December 31, 2024 (in thousands): September 30, 2025 Carrying Amount Fair Value Fair Value Hierarchy 3.00 % Convertible Senior Notes due 2029 $ 460,000 $ 826,582 Level 1 0.00 % Convertible Senior Notes due 2031 $ 625,000 $ 701,493 Level 1 December 31, 2024 Carrying Amount Fair Value Fair Value Hierarchy 3.00 % Convertible Senior Notes due 2029 $ 460,000 $ 703,100 Level 1 0.00 % Convertible Senior Notes due 2031 $ 625,000 $ 615,800 Level 1 Nonrecurring Fair Value Measurements The Company’s non-financial assets, including property, plant and equipment, are measured at estimated fair value on a nonrecurring basis and are adjusted only upon impairment or when held for sale. During the nine months ended September 30, 2025, the Company did not recognize any impairment or other fair value adjustments related to non-financial assets measured at fair value on a nonrecurring basis. No non-financial assets were classified as Level 3 as of September 30, 2025 or December 31, 2024. The Company’s financial instruments, that are not subject to recurring fair value measurements, include cash and cash equivalents (other than money market funds), restricted cash, accounts receivable, accounts payable, leases, notes payable and certain accrued expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amount of these financial instruments materially approximate their fair values. 10. COMMITMENTS AND CONTINGENCIES Commitments As of September 30, 2025, the Company was contractually committed for and on behalf of our high-density colocation customer for approximately $ 1.24 billion of capital expenditures, primarily related to infrastructure modifications, equipment procurement, and labor associated with the conversion of a significant portion of our data centers to deliver high-density colocation services to customers. Of this amount, $ 860.6 million will be passed through to the Company’s customer as invoiced and $ 319.0 million will be funded by the customer as prepaid base license fees for the Colocation segment. These capital expenditures are expected to occur within the next 12 months. Legal Proceedings The Company is subject to legal proceedings arising in the ordinary course of business. The Company accrues losses for a legal proceeding when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, the uncertainties inherent in legal proceedings make it difficult to reasonably estimate the costs and effects of resolving these matters. Accordingly, actual costs incurred may differ materially from amounts accrued and could materially adversely affect the Company’s business, cash flows, results of operations, financial condition and prospects. Unless otherwise indicated, the Company is unable to estimate reasonably possible losses in excess of any amounts accrued. Purported Shareholder Class Action (“Pang”) On November 14, 2022, Plaintiff Mei Pang filed a purported class-action complaint against Core Scientific, Inc., its former chief executive officer, Michael Levitt, and others in the United States District Court, Western District (Austin) of Texas asserting that 27 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements the Company violated the Securities Act and Exchange Act by allegedly failing to disclose to investors that among other things the Company was vulnerable to litigation given its decision to pass power costs to its customers, that certain clients had breached their contracts, and that this impacted the Company’s profitability and ability to continue as a going concern. The complaint seeks monetary damages. Core filed a notice of suggestion of bankruptcy stating that its petition for bankruptcy—filed on December 21, 2022—operates as a stay to the continuation of this matter. Plaintiff subsequently withdrew its claims against Core. A lead plaintiff was appointed in April 2023 and proofs of claim were filed in the Company’s Chapter 11 Cases. After the Company filed its motion to dismiss and a subsequent motion for consideration with respect to remaining claims not dismissed, all remaining claims in the complaint against the individual defendants were subsequently dismissed without prejudice in April 2024. On December 7, 2023, the United States Bankruptcy Court for the Southern District of Texas in Houston, sustained the Company’s objection to the filed class proof of claim without prejudice to re-file a proof of claim on an individual basis by December 20, 2023; and denied plaintiff’s Motion for Class Treatment under Fed. R. Bankr. P. 7023. No individual proof of claim was filed by any of the class representatives of the purported class action by December 20, 2023, and a separately filed objection to confirmation of Debtors’ Fourth Amended Chapter 11 Plan and Disclosure Statement was overruled by the Bankruptcy Court on January 16, 2024. On January 29, 2024, plaintiff filed a notice of appeal of the order confirming the Company’s Plan of Reorganization. On June 7, 2024, Plaintiff refiled its complaint asserting that the individual defendants violated the Securities Exchange Act by allegedly failing to disclose to investors that among other things the Company failed to disclose known trends or uncertainties that would have an impact on the Company’s financial performance. The Company’s motion to dismiss the refiled complaint is pending with the United States District Court in Austin, Texas. On March 7, 2025, the United States District Court for the Western District (Austin) of Texas referred Plaintiff's complaint to the United States Bankruptcy Court for the Southern District of Texas in Houston for determination of the issues raised by the Company's motion to dismiss, dismissed without prejudice Company's motion to dismiss as moot and administratively closed the case. On March 19, 2025, the United States Bankruptcy Court Southern District of Texas Houston Division dismissed Plaintiff's appeal of the order confirming the Company's Plan of Reorganization as it related to the Plaintiffs as moot in light of the administrative closure of the securities case brought by the Plaintiffs in the United States District Court Western District of Texas. On April 2, 2025, the Plaintiff's filed a Motion for Reconsideration of the orders entered in each of the United States District Court for the Southern District of Texas Houston Division and the United States District Court for the Western District of Texas (Austin) and the Company filed its motions opposing each of Plaintiff’s motions for reconsideration. Shareholder Class Action (“Ihle”) On July 24, 2023, Plaintiff Brad Ihle filed a class action complaint against certain officers and directors of Power & Digital Infrastructure Acquisition Corp. (the former name of the current corporate entity operating our business, or “XPDI”) and XMS Sponsor LLC et al, in the Court of Chancery State of Delaware. The complaint alleges breach of fiduciary duties arising out of the merger of XPDI and the entity that conducted our business operations prior to the merger and the marketing and solicitation of shareholders pursuant to that merger agreement dated July 20, 2021. Certain of the defendants have notified the Company of their intention to seek defense and indemnification in this matter pursuant to Delaware law and the Company’s bylaws. As of September 30, 2025, the Company had accrued $ 15.0 million related to the expected settlement of this matter. Patent Infringement Claim Malikie Innovations Ltd and Key Patents Innovations Ltd., filed suit in the United States District Court Eastern District of Texas Marshall Division against Core Scientific, Inc. (the “Company”) alleging infringement in the Company’s bitcoin mining business of U.S. Patent Nos. 8,788,827; 10,284,370; 8,666,062; 7,372,960; and 8,532,286. On July 20, 2025 the Company filed a motion to dismiss the claims on the basis that the patents are invalid under 35 U.S.C §101 and on July 25, 2025 the Company filed a motion to transfer the case to the United States District Court for the Western District of Texas (Austin). As of September 30, 2025 and December 31, 2024, there were no other material loss contingency accruals for legal matters. Leases —See Note 6 — Leases for additional information. 11. INCOME TAXES Current income tax expense represents the amount expected to be reported on the Company’s income tax returns, and deferred tax expense or benefit represents the change in net deferred tax assets and liabilities. Deferred tax assets and liabilities are determined 28 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements based on the difference between the financial statement and tax basis of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. On July 4, 2025, H.R. 1, the “One Big Beautiful Bill Act” was signed into law. In accordance with U.S. GAAP, the Company will account for the tax effects of changes in tax law in the period of enactment, which is the third quarter of calendar year 2025. There was no material impact to our financial statements as a result of this new law. The income tax expense and effective income tax rate for the three and nine months ended September 30, 2025 and 2024 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in thousands, except percentages) Income tax expense $ 125 $ 134 $ 488 $ 484 Effective income tax rate ( 0.1 ) % — % ( 0.1 ) % — % For the three and nine months ended September 30, 2025, the Company recorded $ 0.1 million and $ 0.5 million, respectively, of income tax expense which consisted of discrete state taxes. The Company's estimated annual effective income tax rate without consideration of discrete items is 0.0 %, compared to the U.S. federal statutory rate of 21.0% due to projected changes in the valuation allowance ( 9.9 )%, cancellation of debt income 5.0 %, state taxes 0.1 %, non-deductible loss on warrant and contingent liabilities ( 14.7 )% and other items ( 1.6 )%. The Company has a full valuation allowance on its net deferred tax asset as the evidence indicates that it is not more likely than not expected to realize such asset. For the three and nine months ended September 30, 2024, the Company recorded $ 0.1 million and $ 0.5 million, respectively, of income tax expense which consisted of discrete state taxes. The Company's estimated annual effective income tax rate without consideration of discrete items was 0.0 %, compared to the U.S. federal statutory rate of 21.0% due to projected changes in the valuation allowance 1.0 %, state taxes 0.1 %, non-deductible loss on warrant and contingent liabilities ( 21.9 )% and other items ( 0.2 )%. The Company has a full valuation allowance on its net deferred tax asset as the evidence indicates that it is not more likely than not expected to realize such asset. 12. STOCK-BASED COMPENSATION Incentive Plan The Company adopted an equity-based management incentive plan on April 26, 2024 (the “Incentive Plan”), which was amended and restated on May 12, 2025 to increase the number of shares authorized for issuance from 40,000,000 to 48,000,000 . Under the Incentive Plan, certain executives have been granted market condition restricted stock units (“MSUs”) which are subject to the achievement of market-based share price goals and the executives’ continued service until the relevant vesting date. The number of shares which vest as of the end of each measurement period on each vesting date are conditioned on the highest 20 -day volume weighted average price of the Company's share price achieved during the tranche’s measurement vesting period since grant. The MSU vesting schedule is proportionate over a three-year service period where such proportions are identified as tranches with separate service conditions and measurement periods for the market conditions. If certain market-based share price goals are not met during certain tranche measurement periods, the ability to satisfy such goals apply in subsequent measurement periods and permit vesting if such market conditions are then met (and the service conditions are then satisfied). The following table presents additional information relating to each MSU award: 29 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Share Price Goal Incremental Units Tranche Cumulative Units December 31, 2025 Vesting: $ 3.14 144,041 144,041 $ 5.00 144,041 288,082 $ 8.00 144,041 432,123 $ 10.00 144,041 576,164 $ 12.00 144,041 720,205 $ 14.00 144,041 864,246 December 31, 2026 Vesting: $ 3.14 142,050 142,050 $ 5.00 142,050 284,100 $ 8.00 142,050 426,150 $ 10.00 142,050 568,200 $ 12.00 142,050 710,250 $ 14.00 142,050 852,300 Performance Share Units In April 2025, the Company granted PSUs to certain executive officers under the Incentive Plan. The PSUs are eligible to vest in three equal installments on April 15, 2026, March 15, 2027, and March 15, 2028, subject to satisfaction of the service condition and the achievement of three separate market or performance conditions during the respective performance measurement period (for a total of nine tranches). The performance measurement period is generally the calendar year preceding each vesting date. The number of shares earned at each vesting date range from 0 % to 300 % of target based on measures of satisfaction of the market or performance condition for each tranche. Market conditions include RTSR metric, which is a measure of the performance of the Company’s own stock relative to the Russell 2000. Performance conditions include aggregate energized MW growth and colocation customer acquisition targets. The grant date fair value PSU tranches with RTSR market conditions were estimated using a Monte Carlo simulation model. The following assumptions were used to determine the grant date fair value: Nine Months Ended September 30, 2025 Expected term of awards in years 0.7 - 1.0 Expected volatility 96 % Risk-free interest rate 3.76 % - 4.11 % Expected dividend yield 0 % 30 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Stock-Based Compensation A summary of restricted stock units (“RSU”), MSU and PSU activity for the nine months ended September 30, 2025, is as follows (amounts in thousands, except per share amounts): Restricted Stock Units Market Condition Restricted Stock Units Performance & Market Condition Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Grant Date Fair Value Number of Shares Weighted-Average Grant Date Fair Value Unvested - December 31, 2024 18,341 $ 7.68 1,728 $ 6.11 — $ — Granted 4,235 10.44 — — 7,358 $ 12.07 Vested ( 6,109 ) 8.75 — — — — Forfeited ( 751 ) 6.95 ( 12 ) 3.99 — — Unvested - September 30, 2025 15,717 $ 8.05 1,716 $ 6.13 7,358 $ 12.07 As of September 30, 2025, unrecognized compensation cost and the related weighted-average period over which the cost is expected to be recognized for each award type were as follows (in thousands): Unrecognized Compensation Cost Weighted-Average Recognition Period (Years) RSUs $ 102,911 2.1 years PSUs 55,310 2.5 years MSUs 3,332 1.2 years Total $ 161,553 Stock-based compensation expense for the three and nine months ended September 30, 2025 and 2024, is included in the Company’s condensed consolidated statements of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Cost of revenue $ 1,251 $ 2,338 $ 3,574 $ 5,496 Selling, general and administrative 28,695 17,950 66,727 22,226 Stock-based compensation expense, net of amounts capitalized 1 29,946 20,288 70,301 27,722 Capitalized stock-based compensation 2 227 235 623 235 Total stock-based compensation cost $ 30,173 $ 20,523 $ 70,924 $ 27,957 1 The nine months ended September 30, 2025 includes $ 3.0 million of stock-based compensation expense as a result of accelerated vesting of outstanding RSUs for former board members. 2 Represents the amounts of stock-based compensation capitalized to property, plant, and equipment. 13. NET LOSS PER SHARE Basic earnings per share (“EPS”) is measured as the income or loss available to common stockholders divided by the weighted average common shares outstanding for the period. Upon exercise of the Tranche 2 Warrants, shares are issuable for little or no consideration, sometimes referred to as “penny warrants”. Under ASC 260-10-45-13, those issuable shares are considered outstanding in the computation of basic EPS whether or not related warrants have been exercised. At September 30, 2025, approximately 11.1 million shares of common stock remain issuable upon the exercise of the Tranche 2 Warrants and are included in the number of outstanding shares used for the computation of basic EPS for the three and nine months then ended. Additionally, the basic EPS numerator includes an adjustment to eliminate the changes in fair value that have been recognized in Net loss. 31 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Diluted EPS includes and presents the dilutive effect on EPS from the potential issuance of shares from unvested restricted stock units, conversion of convertible securities, or the exercise of options and/or warrants. The potentially dilutive effect of convertible securities are calculated using the if-converted method. The potentially dilutive effect of options or warrants are computed using the treasury stock method. When potentially dilutive securities have an anti-dilutive effect (i.e., increase income per share or decrease loss per share), they are excluded from the diluted EPS calculation. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2025 (As Restated) 2024 2025 (As Restated) 2024 Numerator: Net loss $ ( 144,027 ) $ ( 455,259 ) $ ( 504,575 ) $ ( 1,146,725 ) Change in fair value of Tranche 2 Warrants ( 849 ) 111,834 33,311 111,834 Basic and diluted net loss $ ( 144,876 ) $ ( 343,425 ) $ ( 471,264 ) $ ( 1,034,891 ) Denominator: Weighted average shares outstanding - basic and diluted 318,562 292,486 317,363 253,058 Net loss per share - basic and diluted $ ( 0.45 ) $ ( 1.17 ) $ ( 1.48 ) $ ( 4.09 ) Pote ntially dilutive securities include securities excluded from the calculation of diluted EPS because to do so would be anti-dilutive. Shares which may be issued from potentially dilutive securities are as follows (in thousands): Three and Nine Months Ended September 30, 2025 September 30, 2024 Tranche 1 Warrants 97,394 98,079 Convertible Notes 69,611 41,825 RSUs, PSUs, and MSUs 24,792 22,019 Stock options 344 369 Total shares issuable from potentially dilutive securities 192,141 162,292 14. SEGMENT REPORTING The Company’s operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics and have similar business activities. The Company has three operating segments: “Digital Asset Self-Mining”, consisting of performing digital asset mining for its own account; “Digital Asset Hosted Mining”, consisting of providing hosting services to third-parties for digital asset mining; and “Colocation”, consisting of providing high-density colocation services to customers employing AI and HPC related workloads. The Company’s Colocation operations met the criteria to be considered a new segment during the second quarter of 2024. During fiscal year 2024, our “Colocation” segment was referred to as “HPC Hosting.” The Digital Asset Self-Mining segment generates revenue from operating owned digital infrastructure and computer equipment as part of a pool of users that process transactions conducted on one or more blockchain networks. In exchange for these services, the Company receives digital assets. The Digital Asset Hosted Mining business generates revenue through the sale of consumption-based contracts for its digital asset hosted mining services which are recurring in nature. The Colocation operation generates revenue through licensing agreements and orders with licensees that include fixed and variable payments on a recurring basis. The Company’s Chief Executive Officer is the chief operating decision maker (“CODM”). The CODM uses gross profit to evaluate performance and allocate resources. Gross profit is used to evaluate actual results against expectations, which are based on comparable prior results, current budget, and current forecast. Gross profit is also used in deciding how profits and cash flows will be reinvested or otherwise deployed. The CODM does not evaluate performance or allocate resources based on segment asset or liability information; accordingly, the Company has not presented a measure of assets by segment. The segments’ accounting policies are the 32 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements same as those described in the summary of significant accounting policies. The Company excludes certain operating expenses and other expenses from the allocations to operating segments. 33 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Digital Asset Self-Mining Segment (in thousands, except percentages) Digital asset self-mining revenue $ 57,438 $ 68,138 $ 187,041 $ 328,840 Cost of digital asset self-mining: Power fees 33,280 37,426 94,319 123,584 Depreciation expense 15,474 27,415 52,792 83,067 Employee compensation 7,803 4,995 23,411 15,712 Facility operations expense 2,089 3,514 7,458 9,695 Other segment items 792 1,205 2,217 4,062 Total cost of digital asset self-mining 59,438 74,555 180,197 236,120 Digital Asset Self-Mining gross (loss) profit $ ( 2,000 ) $ ( 6,417 ) $ 6,844 $ 92,720 Digital Asset Self-Mining gross margin ( 3 ) % ( 9 ) % 4 % 28 % Digital Asset Hosted Mining Segment Digital asset hosted mining revenue from customers $ 8,714 $ 16,878 $ 18,131 $ 71,050 Cost of digital asset hosted mining services: Power fees 4,793 7,875 9,367 32,670 Depreciation expense 376 934 856 3,245 Employee compensation 1,115 1,200 2,225 4,244 Facility operations expense 297 734 665 2,499 Other segment items 113 1,171 201 6,730 Total cost of digital asset hosted mining services 6,694 11,914 13,314 49,388 Digital Asset Hosted Mining gross profit $ 2,020 $ 4,964 $ 4,817 $ 21,662 Digital Asset Hosted Mining gross margin 23 % 29 % 27 % 30 % Colocation Segment Colocation revenue: License fees $ 9,848 $ 7,806 $ 22,853 $ 11,625 Maintenance and other 1,550 45 1,628 82 Licensing revenue 11,398 7,851 24,481 11,707 Power fees passed through to customer 3,553 2,487 9,603 4,150 Total Colocation revenue 14,951 10,338 34,084 15,857 Cost of Colocation services: Depreciation expense 219 42 389 57 Employee compensation 2,209 1,399 4,651 1,477 Facility operations expense 4,383 4,863 12,570 7,964 Other segment items 702 250 1,388 284 Cost of licensing revenue 7,513 6,554 18,998 9,782 Power fees passed through to customer 3,553 2,487 9,604 4,150 Total cost of Colocation services 11,066 9,041 28,602 13,932 Colocation gross profit $ 3,885 $ 1,297 $ 5,482 $ 1,925 Colocation licensing gross margin 34 % 17 % 22 % 16 % Colocation gross margin 26 % 13 % 16 % 12 % Consolidated Consolidated total revenue $ 81,103 $ 95,354 $ 239,256 $ 415,747 Consolidated cost of revenue $ 77,198 $ 95,510 $ 222,113 $ 299,440 Consolidated gross profit $ 3,905 $ ( 156 ) $ 17,143 $ 116,307 Consolidated gross margin 5 % — % 7 % 28 % 34 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements A reconciliation of the reportable segment gross profit (loss) to loss before income taxes included in the Company’s condensed c onsolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2025 (As Restated) 2024 2025 (As Restated) 2024 Reportable segment gross profit (loss) $ 3,905 $ ( 156 ) $ 17,143 $ 116,307 (Increase) decrease in fair value of digital assets ( 10,957 ) 206 ( 30,066 ) 247 Decrease in fair value of energy derivatives — — — 2,757 Loss on disposal of property, plant and equipment 300 509 4,472 4,061 Impairment of property, plant and equipment — — — 97,261 Selling, general and administrative 69,354 40,348 170,851 88,655 Operating loss ( 54,792 ) ( 41,219 ) ( 128,114 ) ( 76,674 ) Non-operating expense (income), net: Loss on debt extinguishment — 317 1,377 487 Interest (income) expense, net ( 821 ) 7,072 ( 4,193 ) 35,934 Change in fair value of warrants and contingent value rights 74,864 408,520 363,358 1,144,441 Reorganization items, net — — — ( 111,439 ) Loss on legal settlements 15,075 356 15,504 2,070 Other non-operating income, net ( 8 ) ( 2,359 ) ( 73 ) ( 1,926 ) Total non-operating expense, net 89,110 413,906 375,973 1,069,567 Loss before income taxes $ ( 143,902 ) $ ( 455,125 ) $ ( 504,087 ) $ ( 1,146,241 ) Concentrations of Revenue and Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with major financial institutions, which management assesses to be of high credit quality, in order to limit the exposure to credit risk. As of September 30, 2025 and December 31, 2024, all of the Company’s fixed assets were located in the United States. For the three and nine months ended September 30, 2025 and 2024, all of the Company’s revenue was generated in the United States. For the three and nine months ended September 30, 2025, 71 % and 78 % of the Company’s total revenue was generated from digital asset mining of bitcoin from one customer. For the three and nine months ended September 30, 2024, 71 % and 79 %, respectively, of the Company’s total revenue was generated from digital asset mining of bitcoin from one customer. As of September 30, 2025 and 2024, substantially all of our digital assets were held by one third-party digital asset service. For the three and nine months ended September 30, 2025, and 2024, the concentration of customers comprising 10% or more of the Company’s Digital Asset Self-Mining, Digital Asset Hosted Mining, and Colocation segment revenue were as follows: Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2025 2024 2025 2024 2025 2024 Percent of Digital Asset Self-Mining segment revenue: Percent of Digital Asset Hosted Mining segment revenue: Percent of Colocation segment revenue: Customer F N/A N/A 23 % 73 % N/A N/A G 100 % 100 % N/A N/A N/A N/A H N/A N/A N/A 19 % N/A N/A J N/A N/A N/A N/A 100 % 100 % L N/A N/A 77 % N/A N/A N/A 35 Core Scientific, Inc. Notes to Unaudited Condensed Consolidated Financial Statements Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 2025 2024 Percent of Digital Asset Self-Mining segment revenue: Percent of Digital Asset Hosted Mining segment revenue: Percent of Colocation segment revenue: Customer F N/A N/A 42 % 59 % N/A N/A G 100 % 100 % N/A N/A N/A N/A H N/A N/A N/A 23 % N/A N/A J N/A N/A N/A N/A 100 % 100 % L N/A N/A 54 % N/A N/A N/A 15. SUPPLEMENTAL CASH FLOW AND NONCASH INFORMATION The following table presents supplemental cash flow and non-cash information for the periods presented (in thousands): Nine Months Ended September 30, 2025 2024 Supplemental disclosure of other cash flow information: Cash paid for interest $ 15,258 $ 26,175 Income tax payments (refunds) 298 ( 1,288 ) Cash paid for reorganization items — 53,835 Supplemental disclosure of noncash investing and financing activities: Purchases of PP&E in accounts payable and accrued expense $ 154,440 $ 9,028 Noncash exercise of warrants 24,692 37,924 Accrued taxes related to net share settlement of equity awards 3,781 — Reclass of other current and non-current assets to plant, property, and equipment — 9,268 Reduction in plant, property, and equipment basis related to Bitmain purchase — ( 26,101 ) Decrease in right-of-use assets due to lease termination — — Increase in right-of-use assets due to lease commencement — 70,690 Increase in lease liability due to lease commencement — — Extinguishment of convertible notes upon emergence — ( 559,902 ) Extinguishment of accounts payable, accrued expenses, finance lease liability, and notes payable upon emergence — ( 321,773 ) Cancellation of common stock in connection with emergence — ( 36 ) Issuance of new common stock in connection with emergence — 296,893 Issuance of new common stock for Bitmain obligation — 27,839 Issuance of new common stock for the Equity Rights Offering backstop commitment — 5,475 Issuance of contingent value rights — 86,325 Issuance of warrants — 345,856 Issuance of New Secured Convertible Notes — 260,000 Issuance of Secured Notes, net of discount — 149,520 Issuance of Exit Credit Agreement including $ 1.2 million paid in kind upfront fee — 41,200 Issuance of miner equipment lender facility loans — 52,947 Issuance of notes related to settlement — 9,092 Cumulative effect of adoption of ASU 2023-08, Accounting for and Disclosure of Crypto Assets — 24 Issuance of new common stock for PIK interest on New Secured Convertible Notes — 3,677 Issuance of new common stock for New Secured Convertible Notes conversion $ — $ 261,772 36