UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-40046

Core Scientific, Inc.

(Exact name of registrant as specified in its charter)

Delaware

86-1243837

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

838 Walker Road

Suite 21-2105

Dover, Delaware

(Address of Principal Executive Offices)

19904

(Zip Code)

(512) 402-5233

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.00001 per share	CORZ	The Nasdaq Global Select Market
Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $6.81 per share	CORZW	The Nasdaq Global Select Market
Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $0.01 per share	CORZZ	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

~~Exchange~~Indicate ~~Act~~by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of ~~1934~~Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to ~~file~~submit such ~~reports~~files),. Yes ☒ No ☐

and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files). Yes ☒ No ☐

Table of Contents

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller

reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☒ No ☐

~~the~~As ~~Securities Exchange Act~~ of ~~1934~~July 23, ~~subsequent~~2026, to321,340,441 ~~the~~shares ~~distribution~~ of ~~securities~~common ~~under~~stock, apar ~~plan~~value ~~confirmed by a court~~$0. ~~Yes~~00001, ~~☒ No~~were ☐outstanding.

As of May 1, 2026, 317,885,292 shares of common stock, par value $0.00001, were outstanding.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including, without limitation, statements under Part I. Item 2. — "Management’s Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”). Forward-looking statements may be identified by the use of words such as “ability,” “aim,” “assume,” “estimate,” “plan,” “possible,” “project,” “forecast,” “goal,” “opportunity,” “intend,” “will,” “expect,” “anticipate,” “believe,” “enable,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections, estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations, the Company’s ability to scale and grow its business, successfully complete construction of its data centers, and source sufficient electrical energy, necessary long lead infrastructure components, supplies and equipment, the advantages and expected growth of the Company, the Company’s ability to source and retain talent, and the Company’s ability to source and consummate acquisitions of entities holding suitable land and power. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in this Quarterly Report on Form 10-Q, and on the current expectations of the Company’s management. These forward-looking statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company.

~~Discussion~~These forward-looking statements are not guarantees of future performance and ~~Analysis~~are subject to risks, uncertainties and assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks, assumptions and uncertainties include those described in Part I. Item 1A. — “Risk Factors" of ~~Financial~~the ~~Condition~~Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 2, 2026. If one or more of these risks or uncertainties materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. There may be additional risks that the Company could not presently know or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and ~~Results~~views as of ~~Operations~~the date of this Quarterly Report on Form 10-Q and should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this Quarterly Report on Form 10-Q. The Company anticipates that subsequent events and developments will cause the Company’s assessments to change. However,” ~~includes~~while the Company may elect to update these forward-looking statements ~~within~~at some point in the ~~meaning~~future, the Company specifically disclaims any obligation to do so. Accordingly, you should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

of Section 27A of the Securities Act of 1933, as amended, (the “Securities Act”) and Section 21E of the Securities Exchange Act of

1934, as amended, (the “Exchange Act”). Forward-looking statements may be identified by the use of words such as “ability,” “aim,”

“assume,” “estimate,” “plan,” “possible,” “project,” “forecast,” “goal,” “opportunity,” “intend,” “will,” “expect,” “anticipate,”

“believe,” “enable,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not

statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding projections,

estimates and forecasts of revenue and other financial and performance metrics, projections of market opportunity and expectations,

the Company’s ability to scale and grow its business, successfully complete construction of its data centers, and source sufficient

electrical energy, necessary long lead infrastructure components, supplies and equipment, the advantages and expected growth of the

Company, the Company’s ability to source and retain talent, the Company’s ability to source and consummate acquisitions of entities

holding suitable land and power, and the intended use of proceeds from the offering of senior secured notes by Core Scientific Finance

I LLC. These statements are provided for illustrative purposes only and are based on various assumptions, whether or not identified in

this Quarterly Report on Form 10-Q, and on the current expectations of the Company’s management. These forward-looking

statements are not intended to serve, and must not be relied on by any investor, as a guarantee, an assurance, a prediction or a

definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from

assumptions. Many actual events and circumstances are beyond the control of the Company.

These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and

assumptions, known or unknown, that could cause actual results to vary materially from those indicated or anticipated. These risks,

assumptions and uncertainties include those described in Part I. Item 1A. — “Risk Factors" of the Company’s Annual Report on Form

10-K for the year ended December 31, 2025, filed with the SEC on March 2, 2026. If one or more of these risks or uncertainties

materializes, or if underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by

such forward-looking statements. There may be additional risks that the Company could not presently know or that the Company

currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the

date of this Quarterly Report on Form 10-Q and should not be relied upon as representing the Company’s assessments as of any date

subsequent to the date of this Quarterly Report on Form 10-Q. The Company anticipates that subsequent events and developments will

cause the Company’s assessments to change. However, while the Company may elect to update these forward-looking statements at

some point in the future, the Company specifically disclaims any obligation to do so. Accordingly, you should not place undue

reliance on these forward-looking statements, which speak only as of the date they are made.

Table of Contents

TABLE OF CONTENTS

		~~Page~~		Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
	~~Condensed Consolidated Balance Sheets~~	6	Condensed Consolidated Balance Sheets	6
	~~Condensed Consolidated Statements of Operations~~	7	Condensed Consolidated Statements of Operations	7
	~~Condensed Consolidated Statements of Stockholders’ Equity~~	8	Condensed Consolidated Statements of Stockholders’ Equity	8
	~~Condensed Consolidated Statements of Cash Flows~~	9	Condensed Consolidated Statements of Cash Flows	9
	~~Notes to Condensed Consolidated Financial Statements~~	10	Notes to Condensed Consolidated Financial Statements	11
	~~1 — Organization and Description of Business~~	10	1 — Organization and Description of Business	11
	~~2 — Summary of Significant Accounting Policies~~	10	2 — Summary of Significant Accounting Policies	11
	3 — Property, Plant, and Equipment	15
			3 — Asset Acquisition	13
	4 — Balance Sheet Components	16
			4 — Property, Plant, and Equipment	13
	5 — Leases	17
			5 — Balance Sheet Components	14
	6 — Debt	19
			6 — Leases	15
	7 — Warrant Liabilities	21
			7 — Debt	17
	8 — Fair Value Measurements	21
			8 — Warrant Liabilities	19
	9 — Commitments and Contingencies	23
			9 — Fair Value Measurements	19
	10 — Income Taxes	25
			10 — Commitments and Contingencies	21
	11 — Stock-Based Compensation	25
			11 — Income Taxes	22
	12 — Net Loss Per Share	27
			12 — Stock-Based Compensation	23
	13 — Segment Reporting	28
			13 — Net Loss Per Share	24
	14 — Supplemental Cash Flow and Noncash Information	30
			14 — Segment Reporting	25
	~~15 — Subsequent Events~~	31	15 — Subsequent Events	28
Item 2.	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~	32	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	~~Quantitative and Qualitative Disclosures About Market Risk~~	44	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	~~Controls and Procedures~~	44	Controls and Procedures	43
PART II — OTHER INFORMATION
Item 1.	~~Legal Proceedings~~	46	Legal Proceedings	45
Item 1A.	~~Risk Factors~~	46	Risk Factors	45
Item 2.	~~Unregistered Sales of Equity Securities and Use of Proceeds~~	47	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	~~Defaults Upon Senior Securities~~	47	Defaults Upon Senior Securities	46
Item 4.	~~Mine Safety Disclosures~~	47	Mine Safety Disclosures	46
Item 5.	~~Other Information~~	47	Other Information	46
Item 6.	~~Exhibits~~	48	Exhibits	47
Signatures		49		48

Table of Contents

GLOSSARY OF TERMS

The following terms, abbreviations and acronyms are used throughout this Form 10-Q, including the consolidated financial statements and related notes:

Artificial Intelligence

AMD

Advanced Micro Devices, Inc.

ASC

Accounting Standards Codification

ASU

Accounting Standards Update

CODM

Chief Operating Decision Maker

CoreWeave

CoreWeave, Inc.

Core Scientific Finance

Core Scientific Finance I LLC, an indirect wholly-owned subsidiary of Core Scientific, Inc.

CVR

Contingent Value Right

EBITDA

Earnings before interest, taxes, depreciation and amortization

EPS

Earnings per share

ERCOT

Electric Reliability Council of Texas

FASB

Financial Accounting Standards Board

GAAP

U.S. Generally Accepted Accounting Principles

Gigawatts

HDC

High-density colocation

HPC

High-performance computing

MSU

Market Condition Restricted Stock Unit

Megawatts

PSU

Performance Share Unit

REIT

Real Estate Investment Trust

RSU

Restricted Stock Unit

RTSR

Relative Total Shareholder Return

SEC

U.S. Securities and Exchange Commission

SOFR

Secured Overnight Financing Rate

Table of Contents

~~Part~~PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Core Scientific, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value)

	March 31,2026	December 31,2025
		June 30,2026		December 31,2025
Assets	~~(Unaudited)~~
Current Assets:
Cash and cash equivalents	~~$1,005,148~~	$~~311,378~~	1,769,735	$	311,378
Restricted cash, current portion	60,244	—
Digital assets		49,675		222,000
Digital assets	37,312	222,000
Customer funding receivable and other current assets		458,489		362,159
Customer funding receivable and other current assets	352,128	362,159
Restricted cash, current portion		165,745		—
Total Current Assets	~~1,454,832~~	~~895~~2,~~537~~443,644		895,537
Property, plant and equipment, net	~~1,344,924~~	1,~~293~~774,~~299~~142		1,293,299
Operating lease right-of-use assets	105,986	108,484
Intangibles, net		228,625		1,076
Restricted cash, net of current portion	80,593	—
Operating lease right-of-use assets		114,199		108,484
Other noncurrent assets	83,229	50,324
Restricted cash, net of current portion		615,911		—
Total Assets	$3,069,564	$2,347,644
Other noncurrent assets		80,972		49,248
Liabilities and Stockholders’ Deficit
Total Assets		$	5,257,493	$	2,347,644
Current Liabilities:
Liabilities and Stockholders’ Deficit
Accounts payable	$218,857	$126,106
Current Liabilities:
Accrued expenses	364,479	511,957
Accounts payable		$	112,374	$	126,106
Deferred revenue	219,555	127,561
Accrued expenses		509,189		511,957
Notes payable, current portion	993,944	—
Deferred revenue		287,201		127,561
Warrant liabilities, current portion	~~844,752~~	—1,811,587		—
Other current liabilities	~~20,196~~	1517,~~777~~443		15,777
Total Current Liabilities	~~2,661,783~~	~~781~~2,~~401~~737,794		781,401
Convertible and other notes payable, net of current portion	1,061,651	1,060,325
Long-term debt		4,297,967		1,060,325
Warrant liabilities, net of current portion	~~116,495~~	~~936~~163,~~107~~683		936,107
Deferred revenue, net of current portion	~~434,672~~	~~428~~367,~~290~~242		428,290
Other noncurrent liabilities	~~100,649~~	~~104~~110,~~261~~163		104,261
Total Liabilities	~~4,375,250~~	37,~~310~~676,~~384~~849		3,310,384
Commitments and contingencies (Note 9)
Commitments and contingencies (Note 10)
Stockholders’ Deficit:
Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at March 31, 2026 and December 31, 2025	—	—
Preferred stock; $0.00001 par value; 2,000,000 shares authorized; none issued and outstanding at June 30, 2026 and December 31, 2025		—		—
Common stock; $0.00001 par value; 10,000,000 shares authorized at March 31, 2026 and December 31, 2025; 316,949 and 314,231 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	3	3
Common stock; $0.00001 par value; 10,000,000 shares authorized at June 30, 2026 and December 31, 2025; 319,587 and 314,231 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively		3		3
Additional paid-in capital	~~3,188,202~~	3,~~183~~229,~~960~~842		3,183,960
Accumulated deficit	~~(4,493,891)~~	(45,~~146~~649,~~703~~201)		(4,146,703)
Total Stockholders’ Deficit	~~(1,305,686)~~	(~~962~~2,~~740~~419,356)		(962,740)
Total Liabilities and Stockholders’ Deficit	~~$3,069,564~~	$~~2,347,644~~	5,257,493	$	2,347,644

Certain prior year amounts have been reclassified for consistency with the current year presentation.

See accompanying notes to unaudited condensed consolidated financial statements.

Core Scientific, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

	Three Months Ended March 31,
		Three Months Ended June 30,				Six Months Ended June 30,
	~~2026~~	~~2025~~2026		2025		2026		2025
Revenue:
Colocation revenue	~~$77,539~~	$~~8,573~~	136,669	$	10,560	$	214,208	$	19,133
Digital asset self-mining revenue	~~30,105~~	6721,~~179~~535		62,424		51,640		129,603
Digital asset hosted mining revenue from customers	~~7,600~~	35,~~773~~997		5,644		13,597		9,417
Total revenue	~~115,244~~	79164,~~525~~201		78,628		279,445		158,153
Cost of revenue:
Cost of colocation services	~~33,618~~	856,~~106~~686		9,430		90,304		17,536
Cost of digital asset self-mining	~~47,189~~	6133,~~170~~700		59,589		80,889		120,759
Cost of digital asset hosted mining services	~~4,331~~	23,~~036~~771		4,584		8,102		6,620
Total cost of revenue	~~85,138~~	7194,~~312~~157		73,603		179,295		144,915
Gross profit	~~30,106~~	870,~~213~~044		5,025		100,150		13,238
Decrease in fair value of digital assets	6,558	10,688
Loss (gain) on fair value of digital assets		9,368		(29,797)		15,926		(19,109)
Loss on disposal of property, plant and equipment	~~13,638~~	61,273		4,166		14,911		4,172
Impairment of property, plant and equipment	266,488	—
Loss on remeasurement of assets held for sale		19,495		—		19,495		—
Colocation organizational and site startup costs	8,665	11,667
Impairment of property, plant and equipment		—		—		266,488		—
Advisor fees	333	603
Loss on contract termination		41,948		—		41,948		—
Selling, general and administrative	44,846	32,287
Colocation organizational and site startup costs		27,039		11,655		35,704		23,322
Operating loss	(310,422)	(47,038)
Selling, general and administrative		49,389		45,285		94,568		78,175
Non-operating expenses (income), net:
Operating loss		(78,468)		(26,284)		(388,890)		(73,322)
Interest expense (income), net	4,857	(2,187)
Non-operating expenses (income), net:
Change in fair value of warrants and contingent value rights	30,799	(621,464)
Loss on debt extinguishment		5,435		1,377		5,435		1,377
Loss on legal settlements	500	—
Interest expense (income), net		23,833		(1,185)		28,690		(3,372)
Other non-operating expense, net	10	157
Change in fair value of warrants and contingent value rights		1,045,515		909,958		1,076,314		288,494
Total non-operating expense (income), net	36,166	(623,494)
Other non-operating expense, net		152		207		662		364
(Loss) income before income taxes	(346,588)	576,456
Total non-operating expense, net		1,074,935		910,357		1,111,101		286,863
Income tax expense	600	205
Loss before income taxes		(1,153,403)		(936,641)		(1,499,991)		(360,185)
Net (loss) income	$(347,188)	$576,251
Income tax expense		1,907		158		2,507		363
Net (loss) income per share
Net loss		$	(1,155,310)	$	(936,799)	$	(1,502,498)	$	(360,548)
Basic	$(1.06)	$1.42
Net loss per share, basic and diluted		$	(3.32)	$	(0.04)	$	(4.39)	$	(0.23)
Diluted	$(1.06)	$1.24
Weighted average shares outstanding, basic and diluted		325,329		317,985		324,128		316,593
Weighted average shares outstanding
Basic	322,911	315,186
Diluted	322,911	363,314

See accompanying notes to unaudited condensed consolidated financial statements.

Core Scientific, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Deficit

(Unaudited, in thousands)

For the Three Months Ended March 31, 2026


	Common Stock			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders’ Deficit
	Shares	Amount
Balance at March 31, 2026	316,949	$	3	$	3,188,202	$	(4,493,891)	$	(1,305,686)
Net loss	—	—		—		(1,155,310)		(1,155,310)
Stock-based compensation	—	—		18,759		—		18,759
Restricted stock awards issued	2,065	—		6,073		—		6,073
Restricted stock awards withheld for tax withholding obligations	(915)	—		(17,724)		—		(17,724)

Exercise of warrants	1,488	—		34,532		—		34,532
Balance at June 30, 2026	319,587	$	3	$	3,229,842	$	(5,649,201)	$	(2,419,356)

Balance at March 31, 2025	299,087	$	3	$	2,973,015	$	(3,281,836)	$	(308,818)
Net loss	—	—		—		(936,799)		(936,799)
Stock-based compensation	—	—		24,346		—		24,346
Restricted stock awards issued	1,499	—		—		—		—

Equity issuance costs	—	—		(21)		—		(21)
Exercise of warrants	2,560	—		29,305		—		29,305
Balance at June 30, 2025	303,146	$	3	$	3,026,645	$	(4,218,635)	$	(1,191,987)

	~~Common Stock~~	Common Stock	~~AdditionalPaid-In Capital~~	~~AccumulatedDeficit~~	~~TotalStockholders’Deficit~~		AdditionalPaid-In Capital		AccumulatedDeficit		TotalStockholders’Deficit
	~~Shares~~	~~Amount~~Shares			Amount
Balance at January 1, 2026	314,231	3	3,183,960	(4,146,703)	(962,740)
Balance at December 31, 2025		314,231			$	3	$	3,183,960	$	(4,146,703)	$	(962,740)
Net loss	—	—	—	~~(347,188)~~	~~(347,188)~~—		—		(1,502,498)		(1,502,498)
Stock-based compensation	—	—	~~18,387~~	—	~~18,387~~—		37,146		—		37,146
Restricted stock awards issued	~~3,690~~	—5,755	~~655~~	—	~~655~~—		6,728		—		6,728
Restricted stock awards withheld for tax withholding obligations	~~(1,359)~~	—(2,274)	~~(21,651)~~	—	~~(21,651)~~—		(39,375)		—		(39,375)
Exercise of warrants	~~387~~	—1,875	~~6,851~~	—	~~6,851~~—		41,383		—		41,383
Balance at March 31, 2026	316,949	$3	$3,188,202	$(4,493,891)	$(1,305,686)
Balance at June 30, 2026		319,587			$	3	$	3,229,842	$	(5,649,201)	$	(2,419,356)
Balance at December 31, 2024		292,606			$	3	$	2,915,035	$	(3,858,087)	$	(943,049)
Net loss		—			—		—		(360,548)		(360,548)
Stock-based compensation		—			—		40,751		—		40,751
Restricted stock awards issued		4,479			—		(50)		—		(50)
Equity issuance costs		—			—		(21)		—		(21)
Exercise of warrants		6,061			—		70,930		—		70,930
Balance at June 30, 2025		303,146			$	3	$	3,026,645	$	(4,218,635)	$	(1,191,987)

For the Three Months Ended March 31, 2025

	Common Stock		AdditionalPaid-In Capital	AccumulatedDeficit	TotalStockholders’Deficit
	Shares	Amount
Balance at January 1, 2025	292,606	3	2,915,035	(3,858,087)	(943,049)
Net income	—	—	—	576,251	576,251
Stock-based compensation	—	—	16,405	—	16,405
Restricted stock awards issued	2,981	—	(50)	—	(50)
Exercise of warrants	3,500	$—	41,625	—	41,625
Balance at March 31, 2025	299,087	$3	$2,973,015	$(3,281,836)	$(308,818)

See accompanying notes to unaudited condensed consolidated financial statements.

~~1 Proceeds from digital assets received as noncash revenue consideration liquidated upon management's discretion.~~8

Core Scientific, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited, in thousands)

	Three Months Ended March 31,
		Six Months Ended June 30,
	~~2026~~	~~2025~~2026		2025
Cash flows from Operating Activities:
Net (loss) income	$(347,188)	$576,251
Net loss		$	(1,502,498)	$	(360,548)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	~~16,648~~	1932,~~731~~146		38,487
Loss on disposal of property, plant and equipment	~~13,638~~	614,911		4,172
Impairment of property, plant and equipment	266,488	—
Loss on remeasurement of assets held for sale		19,495		—
Change in right-of-use assets	3,169	2,676
Impairment of property, plant and equipment		266,488		—
Stock-based compensation	17,761	16,185
Change in operating lease right-of-use assets		6,400		5,404
Digital asset self-mining	(30,119)	(67,441)
Stock-based compensation		36,001		40,355
Proceeds from sales of digital assets generated by self-mining revenues1	208,249	—
Digital asset self-mining revenue		(51,640)		(129,769)
Decrease in fair value of digital assets	6,558	10,688
Proceeds from sales of digital assets generated by self-mining revenues(1)		208,249		—
Change in fair value of warrant liabilities	31,835	(634,280)
Loss (gain) on fair value of digital assets		15,926		(19,109)
Change in fair value of contingent value rights	(1,036)	12,816
Change in fair value of warrants and contingent value rights		1,076,314		288,494
Amortization of debt discount	1,675	1,732
Loss on debt extinguishment		5,435		1,377
Changes in operating assets and liabilities:
Customer funding receivable and other current assets	~~10,107~~	(1081,~~463~~842)		(207,550)
Accounts payable	~~5,874~~	(1435,~~295~~594)		133,531
Accrued expenses	~~(16,361)~~	2155,~~712~~200		70,826
Deferred revenue from colocation services	~~98,832~~	4298,~~005~~409		131,293
Deferred revenue from hosted mining services	(456)	734
Other operating assets and liabilities, net		(32,451)		(8,004)
Other noncurrent assets and liabilities, net	(35,797)	(4,098)
Net cash provided by (used in) operating activities		230,949		(11,041)
Net cash provided by (used in) operating activities	249,877	(45,041)
Cash flows from Investing Activities:
Cash flows from Investing Activities:
Purchases of property, plant and equipment		(954,244)		(205,259)
Purchases of property, plant and equipment	(389,226)	(83,980)
Proceeds from sales of property and equipment		3,927		1,671
Proceeds from sales of property and equipment	2,629	—
Acquisitions of land and development rights		(232,500)		—
Purchase of equity investments	—	(5,000)
Other investing activities		(74)		(5,036)
Investments in intangible assets	(55)	(36)
Net cash used in investing activities		(1,182,891)		(208,624)
Net cash used in investing activities	(386,652)	(89,016)
Cash flows from Financing Activities:
Cash flows from Financing Activities:
Debt extinguishment payments		(1,000,000)		(26,862)
Principal repayments of finance leases	(1,095)	(509)
Proceeds from the issuance of debt		4,275,250		—
Principal payments on debt	—	(3,955)
Debt issuance costs		(48,143)		—
Taxes paid related to net share settlement of equity awards	~~(21,722)~~	—(35,310)		—
Proceeds from exercise of warrants	81	266
Principal payments on debt		—		(8,613)
Proceeds from the issuance of term loan facility, net	995,000	—
Other financing activities		158		(495)
Issuance costs for term loan facility	(882)	—
Net cash provided by (used in) financing activities		3,191,955		(35,970)
Net cash provided by (used in) financing activities	971,382	(4,198)
Net increase (decrease) in cash, cash equivalents and restricted cash		2,240,013		(255,635)
Net increase (decrease) in cash, cash equivalents and restricted cash	834,607	(138,255)
Cash, cash equivalents and restricted cash—beginning of period		311,378		836,980
Cash, cash equivalents and restricted cash—beginning of period	311,378	836,980
Cash, cash equivalents and restricted cash—end of period		$	2,551,391	$	581,345
Cash, cash equivalents and restricted cash—end of period	$1,145,985	$698,725
Supplemental disclosure of other cash flow information:
Cash paid for interest, net of capitalized interest		$	12,846	$	8,386
Income tax payments		$	652	$	457
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property, plant and equipment in accounts payable and accrued expense		$	127,520	$	129,904
Reclass of property, plant and equipment to Held for Sale		$	33,286	$	—

~~Certain prior year amounts have been reclassified for consistency with the current year presentation.~~9


Operating lease right-of-use assets obtained in exchange for lease obligations	$	13,440	$	109
Non-cash exercise of warrants	$	1,458	$	19,559

Reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above:
Cash and cash equivalents	$	1,769,735	$	581,345
Restricted cash, current portion	165,745		—
Restricted cash, net of current portion	615,911		—
Total cash, cash equivalents and restricted cash	$	2,551,391	$	581,345

(1)Proceeds from digital assets received as non-cash revenue consideration liquidated upon management's discretion.

See accompanying notes to unaudited condensed consolidated financial statements.

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 designing, building and operating large scale, purpose-built data centers for high-density colocation services. The Company develops and operates facilities serving artificial intelligence and high-performance computing related workloads and is a premier provider of digital infrastructure. Historically, the Company focused on digital asset mining for its own account and providing hosting solutions for third-party digital asset miners; in 2024, the Company announced its first high-density colocation contract with CoreWeave, Inc., a provider of high-density computing servicing, marking a strategic shift towards its current high-density colocation business. The majority of the Company's revenue is derived from HDC services.

~~built~~As ~~data~~of ~~centers~~June 30, ~~for~~2026, ~~high-density~~the ~~colocation~~Company had a portfolio of 11 facilities in Alabama (~~“HDC”~~1), ~~services.~~Georgia ~~Core~~(2), ~~Scientific~~Kentucky ~~operates~~(1), ~~facilities~~North ~~for~~Carolina ~~high-density~~(1), ~~colocation~~North ~~services~~Dakota (1), Oklahoma (1), and Texas (4).

~~serving~~Core ~~artificial~~Scientific ~~intelligence-related~~operates (in three segments: “AIColocation,”) ~~workloads~~consisting of providing high-density colocation services to customers employing AI and isHPC arelated ~~premier~~workloads; ~~provider~~“Digital Asset Self-Mining,” consisting of performing digital ~~infrastructure,~~asset ~~software~~mining ~~solutions~~for its own account; and “Digital Asset Hosted Mining,” consisting of providing hosting services to third parties for digital asset mining.

The Company’s Colocation segment provides space, power, cooling, facilities operations, security and other services to ~~its~~ third-party colocation customers. ~~The~~to ~~majority~~support ofworkloads ~~the~~for ~~Company's~~machine learning and AI. Colocation segment revenue is ~~derived~~concentrated ~~from~~with ~~high-density~~a ~~colocation~~single ~~services,~~customer; ~~with~~see ~~the~~Note 14 — Segment Reporting.

~~remainder~~The ~~derived~~Digital ~~from~~Asset ~~earning~~Self-Mining segment performs digital ~~assets~~asset mining for the Company'’s own account and generates revenue from ~~digital~~operating ~~asset~~owned infrastructure and computer equipment as part of mining ~~hosting~~pools ~~services.~~in ~~The~~exchange for digital assets.

The Company’s isDigital inAsset ~~the~~Hosted ~~process~~Mining segment provides a full suite of ~~repurposing~~services ~~its~~to ~~remaining~~digital asset mining ~~facilities~~customers. toThe ~~support~~Company ~~its~~provides ~~high-density~~deployment, ~~colocation~~monitoring, troubleshooting, optimization and maintenance of customers’ digital asset mining equipment and provide necessary electrical power, repair and other infrastructure services ~~business~~necessary asfor customers to operate, maintain and efficiently mine digital assets.

circumstances allow. Core Scientific’s facilities are located in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North

Dakota (1), Oklahoma (1), and Texas (4).

The Company had historically focused on designing, building and operating digital infrastructure to engage in digital asset

mining for its own account and providing hosting solutions for third-party digital asset miners. In 2024, the Company announced its

first high-density colocation contract with CoreWeave, Inc. (“CoreWeave), a provider of high-performance computing ("HPC")

services.

Core Scientific operates in three segments: “Colocation,” consisting of providing high-density colocation services to customers

employing AI and HPC related workloads, “Digital Asset Self-Mining,” consisting of performing digital asset mining for its own

account, and “Digital Asset Hosted Mining,” consisting of providing hosting services to third parties for digital asset mining.

The Company’s 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 AI. Colocation segment revenue is concentrated

with a single customer; see Note 13 — Segment Reporting.

The Company’s digital asset hosted mining business provides a full suite of services to digital asset mining customers. The

Company provides deployment, monitoring, troubleshooting, optimization and maintenance of customers’ digital asset mining

equipment and provide necessary electrical power, repair and other infrastructure services necessary for customers to operate, maintain

and efficiently mine digital assets.

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 interim condensed consolidated financial statements.

accounting policies as described below and elsewhere in these notes to the unaudited interim condensed consolidated financial

statements.

Basis of Presentation

The unaudited interim condensed consolidated financial statements have been prepared in accordance with ~~accounting~~GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, the unaudited interim condensed consolidated financial statements do not include all the information and notes required for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP and should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025. In the opinion of management, all adjustments, consisting of normal, recurring adjustments, considered necessary for a fair presentation have been included. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified for consistency with the current year presentation.

~~principles~~The ~~generally~~results ~~accepted~~for in the ~~United~~unaudited ~~States~~interim condensed consolidated statements of ~~America~~operations ~~(“GAAP”).~~are ~~All~~not ~~intercompany~~necessarily ~~balances~~indicative ~~and~~of ~~transactions~~results ~~have~~to ~~been~~be expected for the year ending December 31, 2026 or for any future interim period.

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, 2026 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, 2025.

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 the useful lives of property, plant and equipment, the recoverability and fair value of long-lived assets held and used, and the fair value of assets classified as held for sale, the relative fair values used to allocate consideration in asset acquisitions and the useful lives of the resulting intangible assets, the initial measurement of lease liabilities, stock-based compensation, 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.

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.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Significant Accounting Policies

Except for the updates noted below, see the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a detailed discussion of the Company’s significant accounting policies.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include all cash balances and highly liquid investments, including money market funds, with original maturities of three months or less from the date of acquisition. As of June 30, 2026 and December 31, 2025, substantially all cash and cash equivalents exceeded Federal Deposit Insurance Corporation insured limits. Restricted cash as of June 30, 2026, consisted of (i) funds held in the debt service reserve account established under the indenture governing the Company’s $3.3 billion aggregate principal amount of 7.75% Senior Secured Notes due 2031 (the “Senior Secured Notes”), (ii) funds held in escrow in connection with the pending acquisition of Polaris DS LLC, which will be applied to the purchase price at closing, and (iii) funds held in escrow in connection with certain construction and development activities. The Company had no restricted cash as of December 31, 2025.

maturities of three months or less from the date of acquisition. As of March 31, 2026 and December 31, 2025, substantially all cash

and cash equivalents exceeded Federal Deposit Insurance Corporation insured limits. Restricted cash as of March 31, 2026, consisted

of funds held in escrow in connection with utility and other contractual arrangements.

Digital Assets

The Company’s digital assets have active markets with observable prices and ~~their~~are classified within Level 1 of the fair value ~~measurements~~hierarchy. ~~are~~The ~~considered~~following table presents the Company’s bitcoin holdings (in thousands, except for quantity):

Level 1. The following table presents a roll-forward of total digital assets for the three months ended March 31, 2026 and 2025 (in


	Quantity	Cost Basis		Fair Value
June 30, 2026	848	$	65,454	$	49,675
December 31, 2025	2,537	$	254,694	$	222,000

thousands):

	March 31, 2026	March 31, 2025
Digital assets, beginning of period	$222,000	$23,893
Digital asset self-mining revenue, net of receivables1	30,119	67,441
Proceeds from sales of digital assets and shared hosting	(208,249)	—
Decrease in fair value of digital assets	(6,558)	(10,688)
Digital assets, end of period	$37,312	$80,646

1 As of March 31, 2026, and December 31, 2025, there was $0.3 million and $0.4 million, respectively, of digital asset receivable included in Customer funding

receivable and other current assets on the Company’s condensed consolidated balance sheets.

The following table presents the Company’s bitcoin holdings (in thousands, except for quantity):

	Quantity	Cost Basis	Fair Value
March 31, 2026	547	$43,725	$37,312
December 31, 2025	2,537	$254,694	$222,000

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.

Long-Lived Asset Impairments

The Company tests long-lived asset groups for recoverability whenever events or changes in circumstances have occurred that may affect recoverability or the estimated useful lives. Long-lived assets include property, plant and equipment and intangible assets subject to amortization. A long-lived asset may be impaired when the estimated future undiscounted cash flows are less than the carrying amount of the asset. If that comparison indicates that the asset’s carrying value may not be recoverable, the impairment is measured based on the difference between the carrying amount and the estimated fair value of the asset. Long-lived assets to be disposed of are reported at the lower of the carrying amount or estimated fair value, less costs to sell.

~~may~~Assets ~~affect~~Held ~~recoverability~~for ~~or the estimated useful lives of long-lived assets. Long-lived assets include property, plant and equipment~~ Sale

The Company classifies a long-lived asset (disposal group) as held for sale when all of the criteria in ASC 360-10-45-9 are met. Assets held for sale are measured at the lower of carrying amount or fair value, less cost to sell and are no longer depreciated. Any initial or subsequent write-down to fair value less cost to sell is recognized as a loss on remeasurement of assets held for sale in the condensed consolidated statements of operations; a subsequent gain is recognized for any subsequent increase in fair value less cost to sell, but only to the extent of cumulative losses previously recognized. Any gain or loss not previously recognized that results from the sale is recognized at the date of sale. Assets held for sale are included within “Customer funding receivable and other current assets” on the condensed consolidated balance sheets.

Recently Adopted Accounting Standards

In November 2024, the FASB issued ASU 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments (“ASU 2024-04”), which clarifies the accounting for certain settlements of convertible debt instruments as induced conversions versus extinguishments. The guidance is effective for fiscal years beginning after December 15, 2025. The Company adopted ASU 2024-04 as of January 1, 2026, and applies the guidance prospectively. The adoption of ASU 2024-04 did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~and~~Accounting ~~intangible~~Standards Not Yet ~~assets subject to amortization. A long-lived asset may be impaired when the estimated future undiscounted cash flows~~ Adopted

~~are~~In ~~less~~November ~~than~~2024, the ~~carrying~~FASB ~~amount~~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 ~~asset~~footnotes to the financial statements. IfIn ~~that~~January ~~comparison~~2025, ~~indicates~~the ~~that~~FASB issued ASU 2025-01 to clarify the ~~asset’s~~effective ~~carrying~~date ~~value~~of ~~may~~ASU ~~not~~2024-03 for all public business entities. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be ~~recoverable~~applied prospectively; retrospective application is also permitted. The Company expects to adopt the ASU prospectively. Adoption will not affect the recognition or measurement of the Company's expenses or the expense captions presented on the face of the Company's condensed consolidated statements of operations, but will result in additional disaggregated expense information in the notes to the Company's consolidated financial statements.

~~impairment is measured based on the difference between the carrying amount and the estimated fair value of the asset~~3. ASSET ~~Long-lived~~ ACQUISITION

~~assets~~Hunt toCounty ~~be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell.~~ Acquisition

~~Deferred~~On ~~Revenue~~May 5, 2026, the Company completed an acquisition of land in Hunt County, Texas for an aggregate purchase price of approximately $233 million, and entered into a related electric service agreement, which is expected to support approximately 430 MW of gross utility power capacity. The Company intends to develop this land as a future data center site.

~~Deferred~~The ~~revenue~~acquisition ~~from~~was ~~colocation~~accounted ~~services~~for ~~relate~~as an asset acquisition in accordance with ASC 805-50. The total consideration was allocated on a relative fair value basis, with $4.7 million allocated to ~~prepaid~~land ~~base~~and ~~license~~$227.8 million ~~fees~~allocated ~~for~~to ~~colocation~~development ~~lease~~rights. ~~arrangements~~The ~~which~~development rights are a finite-lived intangible asset with a weighted-average amortization period of approximately 30 years and no significant residual value. Amortization will begin when the related data center is placed in service, and no amortization expense was recognized during the periods presented.

~~accounted~~As ~~for~~of ~~under~~June 30, ~~Accounting~~2026, ~~Standards~~the ~~Codification~~substantial (majority of the “~~ASC~~Intangibles, net”) ~~842~~balance represents development rights recognized in connection with the Hunt County acquisition described above, ~~Leases~~with ~~(“ASC~~the ~~Topic~~remainder ~~842”)~~representing an immaterial amount of other intangible assets. ~~Prepaid~~As ~~base~~of ~~license~~December 31, ~~fees~~2025, ~~relate~~“Intangibles, tonet” consisted entirely of the same other intangible assets.

~~capital expenditures on colocation facility site development funded by the customer~~4. PROPERTY, ~~Deferred~~PLANT, ~~revenue~~AND ~~from hosted mining services~~ EQUIPMENT

~~relates~~The tofollowing ~~customer~~table ~~contracts~~presents ~~for~~the ~~digital~~composition ~~asset~~of ~~hosted~~property, ~~mining~~plant ~~services~~and ~~which~~equipment, ~~are~~net ~~accounted~~at ~~for~~the ~~under~~dates ~~ASC~~indicated ~~606,~~(in ~~Revenue Recognition~~ thousands):

(“ASC Topic 606”). Advanced payments are typically recognized in the following month for hosted mining services and are generally


	June 30, 2026		December 31, 2025		Estimated Useful Lives
Land and improvements(1)	$	90,770	$	21,769	20 years
Building and improvements	509,709		275,186		10 to 39 years
Mining equipment	308,479		393,623		3 years
Electrical and mechanical equipment	127,885		80,384		15 years
Other property, plant and equipment	7,385		18,164		5 to 7 years
Total	1,044,228		789,126
Less: accumulated depreciation and amortization	371,262		406,893
Total	672,966		382,233
Add: Construction in progress	1,101,176		911,066
Property, plant and equipment, net	$	1,774,142	$	1,293,299

~~recognized~~(1)Estimated ~~within~~useful 30life ~~months~~ of ~~license~~improvements. ~~order~~Land ~~commencement~~is ~~for~~not ~~colocation services~~depreciated.

~~The~~Depreciation ~~following~~expense ~~table~~for ~~presents~~the athree ~~rollforward~~and ofsix ~~deferred~~months ~~revenue~~ended June 30, 2026 was $15.3 million and $31.6 million, respectively, compared to $18.6 million and $38.1 million for the ~~periods~~three ~~presented~~and (six months ended June 30, 2025, respectively. During the six months ended June 30, 2026, $465.3 million of construction in ~~thousands):~~progress was placed into service, primarily reflecting the commissioning of colocation infrastructure at the Company’s data center facilities.

	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	(5,124)	(329)	(5,453)
Base license fee earned, not yet due	(13,633)	—	(13,633)
Additional customer funding received	554,850	1,953	556,803
Balance at December 31, 2025	$553,878	$1,973	$555,851
Revenue recognized that was included in the deferred revenue balance as of the beginning of the year	(22,530)	(1,973)	(24,503)
Base license fee earned, not yet due	(8,590)	—	(8,590)
Additional customer funding received	129,952	1,517	131,469
Balance at March 31, 2026	$652,710	$1,517	$654,227
Current portion at March 31, 2026			$219,555
Non-current portion at March 31, 2026			$434,672

Revenue Recognition - Colocation Revenue

The Company’s Colocation segment generates revenue by licensing data center space to customers 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. The Company has elected the practical expedient available under 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 the Company’s current licensing arrangements

and the single combined component in these arrangements is accounted for under the operating lease guidance of ASC Topic 842.

The Company has concluded that it is probable that substantially all of the payments will be collected over the term of the

arrangements and recognizes the total combined component license payments under the agreements on a straight-line basis over the

non-cancellable term. The difference between straight-line license revenue and amounts billed or received is recorded 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.

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

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

toThe ~~the~~following ~~customer~~table ~~over~~presents the ~~coterminous~~composition ~~lease~~of ~~term~~property, plant and ~~have~~equipment, ~~the~~net ~~same~~that ~~pattern~~is ofsubject ~~transfer~~to asoperating leases with customers and is included in the ~~related~~total ~~operating~~property, ~~lease~~plant ~~components.~~and equipment, net presented above, at the dates indicated (in thousands):

Customers may request and the Company may provide maintenance services on customer assets during the coterminous lease term.


	June 30, 2026		December 31, 2025
Land and improvements	$	79,590	$	5,546
Building and improvements	471,976		146,082

Electrical and mechanical equipment	78,752		19,146
Other property, plant and equipment	250		226
Total	630,568		171,000
Less: accumulated depreciation and amortization	16,473		9,856
Property, plant and equipment, net leased to customers	$	614,095	$	161,144

~~Customers~~Depreciation ~~are~~expense ~~charged~~for ~~monthly~~assets leased to customers was $4.9 million and $7.5 million for ~~fees~~the ~~incurred~~three onand ~~these~~six ~~maintenance~~months ~~services~~ended ~~delivered~~June 30, 2026, respectively, and ~~actual~~immaterial ~~power~~for ~~costs~~the ~~incurred~~three atand ~~current~~six months ended June 30, 2025, and is included in the total depreciation expense above.

~~utility~~During orthe ~~fuel~~six ~~cost~~months ~~rates~~ended June 30, 2026, the Company recognized impairment charges of $266.5 ~~These~~million ~~payments~~on ~~from~~its ~~customers~~mining-related ~~for~~property, ~~power~~plant ~~delivery~~and equipment, consisting of $151.6 million related to mining equipment and ~~maintenance~~$114.9 million ~~services~~related ~~are~~to mining infrastructure, all of which were recognized asduring ~~variable~~the ~~lease~~three months ended March 31, 2026. No impairment charges were recognized during the three months ended June 30, 2026, or during the three and six months ended June 30, 2025.

~~payments~~The Company identified indicators of impairment of its mining equipment and mining infrastructure asset groups during the three months ended March 31, 2026, including declines in bitcoin prices, declines in bitcoin hashprice, and significant decreases in secondary market values for digital asset mining equipment. In accordance with ASC Topic 360-10, the ~~practical~~Company ~~expedient~~performed ~~elected~~a recoverability assessment of its mining-related asset groups. ~~Variable~~The ~~lease~~undiscounted ~~payments~~future ~~are~~cash ~~presented~~flows onfor aeach ~~gross~~asset ~~basis~~group ~~and~~was ~~are~~less ~~included~~than its carrying amount, indicating the assets were not recoverable.

inThe ~~Colocation~~Company ~~revenue~~measured inthe fair value of its mining equipment using a market approach based on observable secondary market pricing data for similar assets, classified as Level 2 within the ~~condensed~~fair ~~consolidated~~value ~~statements~~hierarchy. The Company measured the fair value of ~~operations~~its mining infrastructure assets using an income approach based on a discounted cash flow analysis reflecting the estimated future cash flows a market participant would expect from operating the assets as mining hosting facilities, classified as Level 3 within the fair value hierarchy. Refer to Note 9 — Fair Value Measurements for the significant unobservable inputs used in the Level 3 measurement.

~~Revenue~~Assets ~~From~~Held ~~Contracts~~for ~~With Customers - Digital Asset Self-Mining Revenue~~Sale

~~The~~During the three months ended June 30, 2026, the Company ~~recognizes~~committed ~~revenue~~to a plan to sell certain undeployed mining equipment and certain electrical equipment that the Company no longer intends to use in ~~accordance~~its ~~with~~operations. The assets met the criteria for held-for-sale classification under ASC ~~Topic~~360-10-45-9, ~~606~~and the Company expects the sales to be completed within one year. Upon classification, depreciation ceased and the assets were remeasured to fair value less cost to sell; see Note 9 — Fair Value Measurements. The remeasurement resulted in a loss of $19.5 million, recognized within “Loss on remeasurement of assets held for sale” on the condensed consolidated statement of operations for the three and six months ended June 30, 2026. The remaining carrying value of $13.8 million is included within “Customer funding receivable and other current assets” on the condensed consolidated balance sheets as of June 30, 2026.

~~One~~5. BALANCE ofSHEET ~~the Company’s ongoing major or central operations is to provide hash calculations to third-party pool operators as a~~ COMPONENTS

~~participant~~Customer infunding ~~mining~~receivable ~~pools.~~and ~~The~~other ~~Company~~current ~~considers~~assets ~~the~~consisted ~~third-party~~of ~~mining~~the ~~pool~~following ~~operators~~at tothe bedates ~~its~~indicated ~~customers~~(in ~~under ASC Topic 606.~~ thousands):

Contract inception and the Company’s enforceable right to consideration begin when the Company commences providing hash


	June 30, 2026		December 31, 2025
Customer funding receivable	$	383,758	$	337,158
Other	74,731		25,001
Total customer funding receivable and other current assets	$	458,489	$	362,159

~~calculation~~Customer ~~services~~funding toreceivable represents amounts due from the ~~mining~~Company’s ~~pool~~customer ~~operators~~for construction-related payables and accrued expenses incurred on their behalf. ~~Each~~The ~~party~~Company tocollects ~~the~~these ~~contract~~amounts ~~has~~from the ~~unilateral~~customer ~~right~~prior to ~~terminate~~payment to vendors. Obligations related to customer items are paid soon after reimbursement. As of June 30, 2026, $302.2 million of the ~~contract~~related atobligations ~~any~~were included in accrued expenses and $81.6 million were included in accounts payable, compared to $290.6 million in accrued expenses and $46.6 million in accounts payable as of December 31, 2025.

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.

The Company is entitled to non-cash compensation based on the Full-Pay-Per-Share (“FPPS”) model of the mining pool in

which it participates. FPPS pools pay block rewards and transaction fees, net of mining pool fees, and 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 daily 24-hour

period beginning 00:00:00 UTC and ending 23:59:59 UTC. The non-cash consideration for providing hash calculations to the pool

operator under the FPPS payout method is comprised of block rewards and transaction fees net of pool operator fees, 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 00:00:00 UTC and ending 23:59:59 UTC in accordance with the following

formula: the daily hash calculations that the Company 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 00:00:00 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 the

Company earned for the same 24-hour period noted above.

•The block reward and transaction fees earned by the Company are 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

the Company performs hash calculations and generate revenue in accordance with the pool operator’s payout formula during

the same daily 24-hour period.

The above non-cash consideration is variable, since the amount of block reward earned depends on the amount of hash

calculations the Company performs; the amount of transaction fees the Company is 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 they are determined

based on the total block rewards and transaction fees in accordance with the pool operator’s agreement. The Company estimates

variable consideration at contract inception and includes amounts for which it is probable that a significant reversal in the amount of

revenue recognized will not occur when the uncertainty is subsequently resolved. The Company recognizes the non-cash consideration

on the same day that control is transferred of the underlying bitcoin, 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.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Direct~~The ~~expenses~~customer ~~associated~~funding receivable is presented net of an allowance for credit losses. The Company evaluates the collectibility of the customer funding receivable under the current expected credit loss model in accordance with ~~providing~~ASC ~~hash~~326 ~~calculation~~and ~~services~~has todetermined athat ~~third-party~~no ~~operated~~allowance ~~mining~~for ~~pool~~credit ~~are~~losses ~~recorded~~was required as ~~cost~~of June 30, 2026 or December 31, 2025.

ofAccrued ~~revenues. Depreciation and amortization~~ expenses onconsisted ~~fixed and right-~~of~~-use~~ ~~assets,~~the ~~including~~following ~~digital~~at ~~asset~~the ~~mining~~dates ~~equipment,~~indicated ~~used~~(in thousands):

to provide the services are also recorded as a component of cost of revenues.


	June 30, 2026		December 31, 2025
Accrued customer funded construction	$	302,183	$	290,603
Accrued capital expenditures	105,658		197,888
Other	101,348		23,466
Total accrued expenses	$	509,189	$	511,957

~~Revenue~~6. LEASES ~~From Contracts With Customers - Digital Asset Hosted Mining Services~~

~~The~~Lessee ~~Company generates revenue from contracts with customers from digital asset hosted mining services. The Company~~ Accounting

~~recognizes~~The ~~revenue~~Company ~~when~~leases ~~the~~data ~~promised~~center ~~service~~facilities, island, ~~performed.~~office ~~Revenue~~space, ~~excludes~~and ~~any~~computer ~~amounts~~and ~~collected~~networking onequipment. ~~behalf~~The following table presents the components of ~~third~~operating ~~parties,~~and finance leases at the dates indicated (in thousands):

including sales and indirect taxes.


	Financial statement line item	June 30, 2026		December 31, 2025
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	114,199	$	108,484
Finance lease right-of-use assets	Other noncurrent assets	$	1,652	$	1,843
Liabilities:
Operating lease liabilities, current portion	Other current liabilities	$	13,456	$	12,343
Operating lease liabilities, net of current portion	Other noncurrent liabilities	$	95,043	$	89,011

Finance lease liabilities, net of current portion	Other noncurrent liabilities	$	876	$	844

~~Hosting~~The ~~Services~~following table presents the components of lease expense for the periods indicated (in thousands):

The Company regularly enters contracts that include hosting services, for which revenue is recognized as services are


		Three Months Ended June 30,				Six Months Ended June 30,
	Financial statement line item	2026		2025		2026		2025
Operating lease expense	Cost of colocation services	$	3,863	$	3,402	$	7,649	$	6,809
Operating lease expense	Cost of digital asset self-mining	113		76		215		160
Operating lease expense	Cost of digital asset hosted mining services	15		8		27		14
Operating lease expense	Selling, general and administrative	205		1,218		368		2,425
Short-term lease expense	Cost of digital asset self-mining	100		339		242		625
Variable lease expense	Cost of colocation services	447		304		832		573
Finance lease expense:
Amortization of right-of-use assets	Cost of digital asset self-mining	95		170		191		396
Interest on lease liabilities	Interest expense (income), net	16		30		32		79
Total finance lease expense		111		200		223		475
Total lease expense		$	4,854	$	5,547	$	9,556	$	11,081

performed on a variable basis. The Company performs hosting services that enable customers to run blockchain and other HPC

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 the Company’s customers, and its 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 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.

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.

Recently Adopted Accounting Standards

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments

(“ASU 2024-04”), which clarifies the accounting for certain settlements of convertible debt instruments as induced conversions versus

extinguishments. The guidance is effective for fiscal years beginning after December 15, 2025. The Company adopted ASU 2024-04

as of January 1, 2026, and will apply the guidance prospectively. The adoption of ASU 2024-04 did not have a material impact on the

Company’s consolidated financial statements and related disclosures.

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. In

January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03 for all public business entities. The

amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within

annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied

prospectively; retrospective application is also permitted. The Company is currently evaluating the impact these ASUs will have on its

consolidated financial statements and related disclosures.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~3. PROPERTY,~~The ~~PLANT,~~following ~~AND~~table ~~EQUIPMENT~~presents information relating to the lease term and discount rate at the dates indicated:

Property, plant and equipment, net as of March 31, 2026 and December 31, 2025 consist of the following (in thousands):


	June 30, 2026		June 30, 2025
Weighted Average Remaining Lease Term (Years)
Operating leases	7.1		8.1
Finance leases	4.4		0.2

Weighted Average Discount Rate
Operating leases	8.3	%	8.5	%
Finance leases	7.4	%	12.7	%

	March 31, 2026	December 31, 2025	Estimated Useful Lives
Land and improvements1	$74,906	$21,769	20 years
Building and improvements	295,367	275,186	10 to 39 years
Mining equipment	314,357	393,623	3 years
Electrical and mechanical equipment	91,015	80,384	15 years
Other property, plant and equipment	16,178	18,164	5 to 7 years
Total	791,823	789,126
Less: accumulated depreciation and amortization	372,193	406,893
Total	419,630	382,233
Add: Construction in progress	925,294	911,066
	$1,344,924	$1,293,299

The following table presents additional information relating to operating and finance leases for the periods indicated (in thousands):

1 Estimated useful life of improvements. Land is not depreciated.


	Six Months Ended June 30,
	2026		2025
Lease Payments
Operating cash flows from operating leases	$	10,185	$	7,547
Operating cash flows from finance leases	$	5	$	71
Financing cash flows from finance leases	$	1,095	$	1,125

Supplemental Non-cash Information
Operating lease right-of-use assets obtained in exchange for lease obligations	$	13,440	$	109

~~Depreciation~~The ~~expense~~following ~~for~~table presents the ~~three~~Company’s ~~months~~future ~~ended~~minimum ~~March 31,~~payments ~~2026~~under noncancelable operating and ~~2025~~finance ~~was~~leases ~~$16.4 million~~having ~~and~~terms ~~$19.5~~in excess of one year as of June ~~million~~30, ~~respectively.~~2026 (in thousands):

During the three months ended March 31, 2026 and 2025, $140.5 million and $1.6 million, respectively, of construction in


	Operating Leases		Finance Leases
Remaining 2026	$	10,354	$	—
2027	22,957		—
2028	23,568		257
2029	23,309		440
2030	23,470		404
Thereafter	40,809		—
Total lease payments	144,467		1,101
Less: imputed interest	35,968		225
Total	$	108,499	$	876

~~progress~~Lessor ~~was placed into service.~~Accounting

AsThe Company generates revenue by leasing property to a customer under licensing agreements. The manner in which the Company recognizes these transactions in its financial statements is described in Note 2 — Summary of ~~March 31~~Significant Accounting Policies, ~~2026~~Revenue ~~and~~Recognition ~~December~~— Colocation Segment of the Form 10-K for the fiscal year ended December 31, 2025,. Lease revenue is included within Colocation revenue in the condensed consolidated statements of operations. The carrying value of property, plant and equipment, ~~net~~subject ~~being~~to ~~leased~~operating toleases with customers ~~consisted~~is ofpresented ~~the~~in Note 4 — Property, Plant, and Equipment.

The following table presents the components of lease revenue for the periods indicated (in thousands):

	March 31, 2026	December 31, 2025
		Three Months Ended June 30,				Six Months Ended June 30,
Land and improvements	$63,809	$5,546
		2026		2025		2026		2025
Building and improvements	261,208	146,082
Operating lease revenue		$	98,812	$	7,010	$	158,008	$	13,005
Electrical and mechanical equipment	41,735	19,146
Variable lease revenue		37,857		3,550		56,200		6,128
Other property, plant and equipment	224	226
Total lease revenue		$	136,669	$	10,560	$	214,208	$	19,133
Total	366,976	171,000
Less: accumulated depreciation and amortization	11,502	9,856
Property, plant and equipment, net leased to customers	$355,475	$161,144

Depreciation expense for assets leased to customers for the three months ended March 31, 2026, was $2.6 million. There were

no assets leased to customer for the three months ended March 31, 2025.

During the three months ended March 31, 2026, the Company identified indicators of impairment of its mining equipment and

mining infrastructure asset groups, including sustained declines in bitcoin prices, declines in bitcoin hashprice, and significant

decreases in secondary market values for digital asset mining equipment. As a result, the Company performed a recoverability

assessment of its mining-related asset groups in accordance with ASC Topic 360-10. The undiscounted future cash flows for each

asset group was less than its carrying amount, indicating the assets were not recoverable.

The Company measured the fair value of its mining equipment using a market approach based on observable secondary market

pricing data for similar assets. The Company measured the fair value of its mining infrastructure assets using an income approach

based on a discounted cash flow analysis reflecting the estimated future cash flows a market participant would expect from operating

the assets as mining hosting facilities.

During the three months ended March 31, 2026, the Company recognized impairment charges of $266.5 million, consisting of

$151.6 million related to mining equipment and $114.9 million related to mining infrastructure, which are included in Impairment of

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~property,~~The ~~plant~~following ~~and~~table ~~equipment~~represents infuture ~~the~~operating ~~condensed~~lease ~~consolidated~~payments ~~statements~~expected ofto ~~operations.~~be Noreceived ~~impairment~~as ~~charges~~of ~~were~~June 30, ~~recognized~~2026 ~~during~~(in thousands):

the three months ended March 31, 2025.


	Operating Leases(1)
Remaining 2026	$	132,281
2027	271,468
2028	368,963
2029	527,771
2030	546,112
Thereafter	4,241,072
Total	$	6,087,667

4(1)Operating lease payments expected to be received exclude $3. ~~BALANCE~~1 ~~SHEET~~billion ~~COMPONENTS~~in total future noncancellable operating lease payments expected to be received for operating leases that have not yet commenced as of June 30, 2026, which have initial lease terms of 12 years from commencement.

~~Customer~~7. DEBT ~~funding receivable and other current assets as of March 31, 2026 and December 31, 2025 consisted of the following~~

The following table summarizes the terms and carrying amounts of the Company’s outstanding debt at the dates indicated (dollars in thousands):

	March 31, 2026	December 31, 2025
		Stated Interest Rate	Effective Interest Rates	Maturities	June 30, 2026		December 31, 2025
Customer funding receivable	$315,667	$337,158
Senior Secured Notes		7.75%	8.3%	2031	$	3,300,000	$	—
Other	36,461	25,001
2029 Convertible Notes		3.00%	3.7%	2029	460,000		460,000
Total customer funding receivable and other current assets	$352,128	$362,159
2031 Convertible Notes		—%	0.4%	2031	625,000		625,000
Notes payable					4,385,000		1,085,000
Less: Unamortized discounts					87,033		24,675
Long-term debt					$	4,297,967	$	1,060,325

~~Customer~~The ~~funding~~following ~~receivable~~table ~~represents~~presents ~~amounts~~the ~~due~~components ~~from~~of ~~the~~interest ~~Company’s~~expense ~~customer~~ for ~~construction-related~~the ~~payables~~periods ~~and~~indicated (in thousands):

accrued expenses incurred on their behalf. The Company collects these amounts from the customer prior to payment to vendors.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Coupon interest	$	48,690	$	3,450	$	55,485	$	6,900
Amortization of debt discount and issuance costs	3,682		1,304		5,358		2,601
Interest incurred	52,372		4,754		60,843		9,501
Less: Capitalized interest	11,725		—		12,050		—
Interest expense	$	40,647	$	4,754	$	48,793	$	9,501

The following table presents the contractual maturities of the Company’s debt, gross of unamortized discounts, as of June 30, 2026 (in thousands):

Obligations related to customer items are paid soon after reimbursement. As of March 31, 2026, $187.7 million of the related


	Convertible Notes		Senior Secured Notes(1)
Remaining 2026	$	—	$	—
2027	—		—
2028	—		—
2029	460,000		189,750
2030	—		379,500
Thereafter	625,000		2,730,750
Total	$	1,085,000	$	3,300,000

~~obligations~~(1)Because ~~were~~the ~~included~~First inInstallment ~~accrued~~Payment ~~expenses~~Date (as defined below) is contingent on rent commencement and ~~$128.0 million~~the ~~were~~abatement ~~included~~of inrevenue ~~accounts~~credits ~~payable~~under the related datacenter leases, ~~compared~~the ~~with~~maturities ~~$290.6 million~~presented above reflect scheduled amortization assuming a First Installment Payment Date of November 15, 2029.

in accrued expenses and $46.6 million in accounts payable as of December 31, 2025.

Accrued expenses as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

	March 31, 2026	December 31, 2025
Accrued customer funded construction	$193,669	$290,603
Accrued capital expenditures	118,681	197,888
Other	52,129	23,466
Total accrued expenses	$364,479	$511,957

Other noncurrent liabilities as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):

	March 31, 2026	December 31, 2025
Operating lease liabilities, net of current portion	$86,181	$89,011
Customer security deposit, net of current portion	11,040	11,040
Other	3,428	4,210
Total other noncurrent liabilities	$100,649	$104,261

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

In March 2026, the Company entered into a loan facility credit agreement providing for a $1.0 billion senior secured loan facility bearing interest at Term SOFR plus 2.50% per annum, maturing 364 days from closing (the “Term Loan Facility”). In May 2026, a portion of the net proceeds from the Senior Secured Notes offering described below was used to repay in full all outstanding borrowings under the Term Loan Facility, including accrued interest and fees, and to terminate the facility, resulting in a loss on debt extinguishment of $5. ~~LEASES~~4 million. The remaining net proceeds were used to fund a debt service reserve account, of which $344.8 million remained on deposit as of June 30, 2026, and are included in Restricted cash on the condensed consolidated balance sheets. In connection with the Senior Secured Notes offering, the Company recorded $42.0 million of debt issuance costs and a $24.8 million original issue discount as reductions of the carrying amount of the Senior Secured Notes, amortized to interest expense over the term of the notes using the effective interest method.

~~Lessee~~Senior ~~Accounting~~Secured Notes

~~The~~On ~~components~~May 6, 2026, Core Scientific Finance, an indirect wholly-owned subsidiary of ~~operating~~the Company, completed a private offering of $3.30 billion aggregate principal amount of 7.75% Senior Secured Notes due 2031 at an issue price of 99.25% of the principal amount. Interest accrues at a rate of 7.75% per annum and ~~finance~~is ~~leases~~payable ~~are~~semi-annually ~~presented~~in arrears on May 15 and November 15 of each year, beginning November 15, 2026. Amortization of principal will commence on the ~~Company’s~~First ~~condensed~~Installment ~~consolidated~~Payment ~~balance~~Date, ~~sheets~~defined in the indenture as the first semi-annual payment date to occur at least 15 days after the later of (i) rent commencement under the related datacenter leases and (ii) the abatement of all revenue credits provided by the Company or its affiliates to the tenant under the related datacenter leases. Beginning on the First Installment Payment Date, Core Scientific Finance will make semi-annual installment payments on May 15 and November 15 of each year at an initial annual rate of 11.50% per annum of the original principal amount of the Senior Secured Notes outstanding on the issue date until the notes are repaid, repurchased, redeemed or otherwise discharged in full.

~~follows~~The Senior Secured Notes and related guarantees are secured by first-priority liens on (i) substantially all of the assets of Core Scientific Finance and Core Scientific Austin LLC, Core Scientific Denton LLC, Core Scientific Dalton LLC, Core Scientific Marble LLC and Core Scientific Muskogee LLC (collectively, the "Subsidiary Guarantors"), (ii) the equity interests of Core Scientific Finance held by its direct parent, and (iii) certain assets and rights identified as subject to the Ringfencing (as defined in ~~thousands~~the completion guarantee description below): which are not yet transferred (or in which rights to use have not been granted) to Core Scientific Finance or the Subsidiary Guarantors. The Indenture contains customary covenants that restrict the ability of Core Scientific Finance and the Subsidiary Guarantors to, among other things, (i) incur additional indebtedness, (ii) pay dividends or distributions on, or redeem or repurchase, capital stock and make other restricted payments, (iii) make certain investments, (iv) create or incur liens, (v) consummate certain assets sales, (vi) enter into sale and lease back transactions, (vii) hold assets or conduct operations unrelated to the operation of the Facilities (as defined in the indenture) and certain additional projects, (viii) terminate or amend certain agreements, (ix) engage in certain transactions with affiliates, and (x) merge, consolidate or transfer or sell all or substantially all of their respective assets. Neither the Company nor its other subsidiaries are subject to these covenants. In addition, the Company provided an uncapped completion guarantee for the benefit of the holders with respect to the completion of specified data center development projects.

	Financial statement line item	March 31, 2026	December 31, 2025
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$105,986	$108,484
Finance lease right-of-use assets	Other noncurrent assets	$1,748	$1,843
Liabilities:
Operating lease liabilities, current portion	Other current liabilities	$12,873	$12,343
Operating lease liabilities, net of current portion	Other noncurrent liabilities	$86,181	$89,011
Finance lease liabilities, current portion	Other current liabilities	$—	$—
Finance lease liabilities, net of current portion	Other noncurrent liabilities	$860	$844

Core Scientific Finance may redeem the Senior Secured Notes prior to maturity, in whole or in part, at the redemption prices specified in the Indenture, which include a "make-whole" premium for redemptions prior to May 15, 2028. Upon a change of control, Core Scientific Finance is required to offer to repurchase the Senior Secured Notes at 101% of the principal amount, plus accrued and unpaid interest, if any, but excluding the purchase date.

~~The~~Convertible ~~components of lease expense were as follows (in thousands):~~Notes

		Three Months Ended March 31,
	Financial statement line item	2026	2025
Operating lease expense	Cost of colocation services	$3,786	$3,407
Operating lease expense	Cost of digital asset self-mining	102	85
Operating lease expense	Cost of digital asset hosted mining services	12	5
Operating lease expense	Selling, general and administrative	163	1,207
Short-term lease expense	Cost of digital asset self-mining	142	286
Variable lease expense	Cost of colocation services	385	269
Finance lease expense:
Amortization of right-of-use assets	Cost of digital asset self-mining	95	226
Interest on lease liabilities	Interest expense, net	16	49
Total finance lease expense		111	275
Total lease expense		$4,701	$5,534

On August 19, 2024, the Company issued $460.0 million in aggregate principal amount of 3.00% Convertible Senior Notes due 2029 (the “2029 Convertible Notes”). The 2029 Convertible Notes mature on September 1, 2029, unless earlier converted, redeemed or repurchased. The 2029 Convertible Notes are convertible at the option of the holders only upon the occurrence of certain events, including if the Company's common stock price exceeds 130% of the conversion price (approximately $14.30 per share, based on the initial conversion price of approximately $11.00 per share) for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter. The stock price conversion condition for the 2029 Convertible Notes was first satisfied during the fourth quarter of 2025. As a result, the 2029 Convertible Notes were convertible at the option of the holders during the six months ended June 30, 2026. No holders elected to convert during the period. This condition was satisfied during each of the first and second quarters of 2026, and accordingly, the 2029 Convertible Notes remain convertible during the third quarter of 2026.

Information relating to the lease term and discount rate is as follows:

	March 31, 2026	March 31, 2025
Weighted Average Remaining Lease Term (Years)
Operating leases	7.3	8.3
Finance leases	4.7	0.5
Weighted Average Discount Rate
Operating leases	8.5%	8.5%
Finance leases	7.4%	12.6%

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Information~~On ~~relating~~December to5, ~~lease~~2024, ~~payments~~the isCompany asissued ~~follows~~$625.0 million aggregate principal amount of 0.00% Convertible Senior Notes due 2031 (inthe ~~thousands~~"2031 Convertible Notes"):. The 2031 Convertible Notes mature on June 15, 2031, unless earlier converted, redeemed, or repurchased. The 2031 Convertible Notes are convertible at the option of the holders only upon the occurrence of certain events, including if the Company’s common stock price exceeds 130% of the conversion price (approximately $29.24 per share, based on the initial conversion price of approximately $22.49 per share) for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter. The stock price conversion condition for the 2031 Convertible Notes was not satisfied during any measurement period through June 30, 2026.

	Three Months Ended March 31,
	2026	2025
Lease Payments
Operating cash flows from operating leases	$5,058	$3,052
Operating cash flows from finance leases	$5	$40
Financing cash flows from finance leases	$1,095	$509
Supplemental Noncash Information
Operating lease right-of-use assets obtained in exchange for lease obligations	$1,988	$—
Decrease in operating right-of-use assets due to lease modification	$—	$(593)
Decrease in operating right-of-use assets due to termination	$(1,318)	$—

8. WARRANT LIABILITIES

~~The~~On January 23, 2024, the Company’s ~~minimum~~entered ~~payments~~into ~~under~~a ~~noncancelable~~warrant ~~operating~~agreement ~~and~~(the ~~finance~~“Warrant ~~leases~~Agreement”) ~~having~~providing ~~terms~~for inthe ~~excess~~issuance of 98,313,313 warrants, each exercisable for one ~~year~~share ~~are~~of ascommon 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 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.

~~follows~~During atthe ~~March~~three and six months ended June 3130, 2026, ~~and~~0.3 ~~thereafter~~million (Tranche 1 Warrants were exercised, which resulted in ~~thousands):~~cash receipts of $1.2 million. As of June 30, 2026, there were 96.4 million unexercised Tranche 1 Warrants.

	Operating Leases	Finance Leases
Remaining 2026	$15,418	$—
2027	20,926	—
2028	21,215	257
2029	20,938	440
2030	21,079	403
Thereafter	33,239	—
Total lease payments	132,815	1,100
Less: imputed interest	33,761	240
Total	$99,054	$860

During the three and six months ended June 30, 2026, 1.2 million and 1.6 million Tranche 2 Warrants were exercised, respectively, which resulted in immaterial cash receipts. As of June 30, 2026, there were 6.6 million unexercised Tranche 2 Warrants.

~~Lessor~~9. FAIR ~~Accounting~~VALUE MEASUREMENTS

WeThe ~~generate~~Company ~~revenue~~measures bycertain ~~leasing~~assets ~~property~~and toliabilities at fair value on a ~~customer~~recurring ~~under~~or ~~licensing~~nonrecurring ~~agreements~~basis. ~~The~~For ~~manner~~a indescription ~~which~~of the Company’s fair value measurement policies, including the fair value hierarchy and valuation methodologies, see Note 10 - Fair Value Measurements, of the Form 10-K for the fiscal year ended December 31, 2025.

~~recognizes~~Recurring ~~these~~Fair ~~transactions~~Value ~~in its financial statements is described in Note 2 — Summary of Significant Accounting Policies,~~ Measurements

~~Revenue~~The ~~Recognition~~following —table ~~Colocation~~presents ~~Segment.~~the fair value hierarchy levels and carrying amounts of assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands):

The components of lease revenue were as follows (in thousands):



	Level	June 30, 2026		December 31, 2025
Assets:
Cash and cash equivalents
Money market funds	1	$	1,759,822	$	267,721
Digital assets	1	49,675		222,000
Total assets measured at fair value on a recurring basis		$	1,809,497	$	489,721



Liabilities:
Contingent value rights(1)	1	$	1,295	$	3,366
Warrant liabilities, current portion	1	1,811,587		—
Warrant liabilities, net of current portion	1	163,683		936,107
Total liabilities measured at fair value on a recurring basis		$	1,976,565	$	939,473

	Three Months Ended March 31,
	2026	2025
Lease Revenue
Operating lease revenue	$59,196	$5,995
Variable lease revenue	10,219	2,578
Total lease revenue	$69,415	$8,573

(1)The fair value of contingent value rights is included within “Other current liabilities” and “Other noncurrent liabilities” on the Company’s condensed consolidated balance sheets, based on the expected timing of settlement.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table ~~represents~~presents the ~~maturity~~changes ~~analysis~~in fair value of ~~operating~~the ~~lease~~Company’s ~~payments~~CVRs ~~expected~~and toWarrant beliabilities ~~received~~included atin ~~March 31,~~“Change ~~2026,~~in fair value of warrants and contingent value rights” in the condensed consolidated statements of operations for the periods indicated (in thousands):

and thereafter (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Decrease (increase) in:
Fair value of CVRs	$	(1,036)	$	(13,723)	$	(2,072)	$	(906)
Fair value of Warrants	1,046,551		923,681		1,078,386		289,400
Change in fair value of warrants and contingent value rights	$	1,045,515	$	909,958	$	1,076,314	$	288,494

	Operating Leases1
Remaining 2026	$111,933
2027	153,848
2028	231,487
2029	302,930
2030	313,402
Thereafter	2,277,488
Total	$3,391,088

Nonrecurring Fair Value Measurements

1The ~~Operating~~Company ~~lease~~measures ~~payments~~certain ~~expected~~non-financial toassets at fair value on a nonrecurring basis when events or circumstances indicate that the carrying amount may not be ~~received~~recoverable, ~~exclude~~or $5upon classification as held for sale.8 ~~billion~~During the six months ended June 30, 2026, the Company recognized nonrecurring fair value measurements in ~~total~~connection ~~future~~with ~~noncancellable~~(i) ~~operating~~impairment ~~lease~~charges ~~payments~~on ~~expected~~its tomining-related beproperty, ~~received~~plant and equipment, measured as of March 31, 2026, and (ii) the remeasurement of certain mining and electrical equipment upon classification as held for ~~operating~~sale, measured as of June 30, 2026, each as further discussed below.

~~leases~~During ~~that~~the ~~have~~three ~~not~~months ~~yet~~ended ~~commenced~~March 31, 2026, the Company recognized nonrecurring fair value measurements in connection with impairment charges on its mining-related property, plant and equipment. The Company reassessed these assets as of ~~March~~June 3130, 2026, ~~which~~and ~~have~~determined ~~initial~~that ~~lease~~no ~~terms~~additional ofimpairment 12or ~~years~~remeasurement ~~from~~was ~~commencement~~necessary as the fair value exceeded the depreciated carrying value. See Note 4 — Property, Plant, and Equipment for further detail on each of these measurements.

6During the three months ended June 30, 2026, certain mining equipment previously impaired was reclassified to held for sale and remeasured to fair value less cost to sell, and certain electrical equipment was classified as held for sale and measured at fair value. ~~DEBT~~ The following table presents the fair value of assets measured on a nonrecurring basis as of June 30, 2026 (in thousands):

Debt as of March 31, 2026 and December 31, 2025 consisted of the following (in thousands):


	Level 1		Level 2		Level 3		Fair value


Mining and electrical equipment held for sale	$	—	$	13,790	$	—	$	13,790

	Stated Interest Rate	Effective Interest Rates	Maturities	March 31, 2026	December 31, 2025
Term Loan Facility1	6.2%	6.9%	2027	$1,000,000	$—
2029 Convertible Notes	3.0%	3.7%	2029	460,000	460,000
2031 Convertible Notes	—%	0.4%	2031	625,000	625,000
Notes payable				2,085,000	1,085,000
Less: Unamortized discounts				29,405	24,675
Total notes payable, net				2,055,595	1,060,325
Less: current portion				993,944	—
Convertible and other notes payable, net of current portion				$1,061,651	$1,060,325

The fair value of mining equipment held for sale was determined using a market approach based on observable pricing from published secondary market indices for digital asset mining hardware. The fair value of electrical equipment held for sale was determined using a market approach based on observed sales prices for comparable equipment. Each of these measurements is classified as Level 2 within the fair value hierarchy.

~~1 Interest~~The ~~rate~~Company’s isfinancial ~~variable~~instruments ~~and~~not ~~resets~~subject ~~monthly~~to ~~based~~recurring onfair ~~SOFR~~value ~~plus~~measurements aninclude ~~applicable~~cash ~~margin~~and ofcash ~~2.50%~~equivalents ~~per~~(other ~~annum.~~than Asmoney ofmarket ~~March~~funds), 31restricted cash, ~~2026~~accounts receivable, ~~the~~accounts ~~stated~~payable, ~~rate~~leases, ~~was~~debt 6and certain accrued expenses and other liabilities.2% Except for the Senior Secured Notes, the 2029 Convertible Notes, and 2031 Convertible Notes, the carrying amounts of these financial instruments materially approximate their fair values.

~~effective~~Financial ~~interest~~Instruments ~~rate~~Not ~~was~~Carried ~~6.9%,~~at ~~which~~Fair ~~includes the amortization of debt issuance costs.~~Value

~~Interest~~The ~~expense~~Senior onSecured Notes, the ~~Company’s~~2029 ~~debt~~Convertible ~~was~~Notes asand ~~follows~~2031 Convertible Notes are recorded at amortized cost in the condensed consolidated balance sheets. The following table presents the carrying amounts, estimated fair values, and the level within the fair value hierarchy of these instruments at the dates indicated (dollars in thousands):

	Three Months Ended March 31,
			June 30, 2026				December 31, 2025
	2026	2025
		Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Coupon interest	$6,810	$3,450
Senior Secured Notes		2	$	3,300,000	$	3,349,137	$	—	$	—
Amortization of debt discount and issuance costs	1,675	1,297
2029 Convertible Notes		1	$	460,000	$	1,108,299	$	460,000	$	718,609
Interest incurred	8,485	4,747
2031 Convertible Notes		1	$	625,000	$	868,409	$	625,000	$	657,735
Less: Capitalized interest	(325)	—
Interest expense	$8,160	$4,747

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Maturities~~10. COMMITMENTS onAND ~~debt, gross of unamortized discounts, as of March 31, 2026, are as follows (in thousands):~~CONTINGENCIES

	Convertible Notes	Term Loan Facility
Remaining 2026	$—	$—
2027	—	1,000,000
2028	—	—
2029	460,000	—
2030	—	—
Thereafter	625,000	—
Total	$1,085,000	$1,000,000

Convertible Notes

On August 19, 2024, the Company issued $460.0 million in aggregate principal amount of 3.00% Convertible Senior Notes due

2029 (the “2029 Convertible Notes”). The 2029 Convertible Notes mature on September 1, 2029, unless earlier converted, redeemed

or repurchased. The 2029 Convertible Notes are convertible at the option of the holders only upon the occurrence of certain events,

including if the Company's common stock price exceeds 130% of the conversion price (approximately $14.30 per share, based on the

initial conversion price of approximately $11.00 per share) for at least 20 trading days (whether or not consecutive) during the 30

consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter. The stock

price conversion condition for the 2029 Convertible Notes was first satisfied during the fourth quarter of 2025. As a result, the 2029

Convertible Notes were convertible at the option of the holders during the three months ended March 31, 2026. No holders elected to

convert during the period. This condition was also satisfied during the first quarter of 2026, and accordingly, the 2029 Convertible

Notes remain convertible during the second quarter of 2026.

On December 5, 2024, the Company issued $625.0 million aggregate principal amount of 0.00% Convertible Senior Notes due

2031 (the "2031 Convertible Notes"). The 2031 Convertible Notes mature on June 15, 2031, unless earlier converted, redeemed, or

repurchased. The 2031 Convertible Notes are convertible at the option of the holders only upon the occurrence of certain events,

including if the Company’s common stock price exceeds 130% of the conversion price (approximately $29.24 per share, based on the

initial conversion price of approximately $22.49 per share) for at least 20 trading days (whether or not consecutive) during the 30

consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter. The stock

price conversion condition for the 2031 Convertible Notes was not satisfied during any measurement period through March 31, 2026.

Term Loan Facility

On March 4, 2026, the Company entered into a loan facility Credit Agreement (the “Credit Agreement”) with the lenders party

thereto from time to time and Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent (“MSSF”). The Credit

Agreement provides for a senior secured loan facility (the “Term Loan Facility”) in an aggregate principal amount of $500.0 million,

with an accordion feature that allowed up to an additional $500.0 million. The Company borrowed the full $500.0 million initially

available on March 5, 2026. On March 18, 2026, the Company entered into Amendment No. 1 to the Credit Agreement (the

“Incremental Amendment”) with MSSF and JPMorgan Chase Bank, N.A. as Amendment No. 1 Term Lender, which amended the

Credit Agreement to increase the term loan commitments by $500.0 million, to $1.0 billion, pursuant to the accordion feature of the

Credit Agreement. The Company borrowed the full $500.0 million incremental commitment on March 18, 2026.

Loans under the Term Loan Facility bear interest at Term Secured Overnight Financing Rate (“SOFR”) (subject to a 0% floor)

plus an applicable margin of 2.50% per annum. The Term Loan Facility matures 364 days after the closing date. The Company’s

obligations are guaranteed by certain direct or indirect, wholly owned material domestic subsidiaries and secured by a first-priority

lien on substantially all assets of the Company and the guarantors. As of March 31, 2026, $1.0 billion was outstanding under the Term

Loan Facility. In connection with the Credit Agreement and the Incremental Amendment, the Company incurred approximately

$6.4 million of debt issuance costs, which are being amortized over the term of the Term Loan Facility.

Secured Notes Offering

On April 22, 2026, the Company's indirect wholly-owned subsidiary, Core Scientific Finance I LLC (“Core Scientific

Finance”), priced a private offering of $3.30 billion aggregate principal amount of 7.75% senior secured notes due 2031 at an issue

price of 99.25% of the principal amount. Core Scientific Finance used the net proceeds from the offering to fund a debt service reserve

account, and the remaining proceeds to make a distribution to the Company, a portion of which the Company used to repay in full the

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

outstanding borrowings under the Term Loan Facility, including accrued interest thereon and fees and expenses in connection

therewith. The offering closed on May 6, 2026. Upon such repayment, the Company terminated the Term Loan Facility.

7. WARRANT LIABILITIES

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 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 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 months ended March 31, 2026, nominal Tranche 1 Warrants were exercised, which resulted in cash receipts of

$0.1 million. As of March 31, 2026, there were 96.7 million unexercised Tranche 1 Warrants.

During the three months ended March 31, 2026, 0.4 million Tranche 2 Warrants were exercised, which resulted in immaterial

cash receipts. As of March 31, 2026, there were 7.8 million unexercised Tranche 2 Warrants.

8. FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

During the three months ended March 31, 2026 and 2025, a decrease of $1.0 million and an increase of $12.8 million, in fair

value of CVRs, respectively, was included in Change in fair value of warrants and contingent value rights in the Company’s

condensed consolidated statements of operations.

During the three months ended March 31, 2026 and 2025, an increase of $31.8 million and a decrease of $634.3 million, in fair

value of Warrants, respectively, was included in Change in fair value of warrants and contingent value rights in the Company’s

condensed consolidated statements of operations.

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 March 31, 2026 (in thousands):

	Fair Value Hierarchy
	Level 1	Level 2	Level 3	Fair value
Assets:
Cash and cash equivalents
Money market funds	$1,000,384	$—	$—	$1,000,384
Digital assets	37,312	—	—	37,312
Total assets measured at fair value on a recurring basis	$1,037,696	$—	$—	$1,037,696
Liabilities:
Contingent value rights1	$2,330	$—	$—	$2,330
Warrant liabilities, current portion	844,752			844,752
Warrant liabilities, net of current portion	116,495	—	—	116,495
Total liabilities measured at fair value on a recurring basis	$963,577	$—	$—	$963,577

1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s condensed consolidated balance

sheets, based on the expected timing of settlement.

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 December 31, 2025 (in thousands):

	Fair Value Hierarchy
	Level 1	Level 2	Level 3	Fair value
Assets:
Cash and cash equivalents
Money market funds	$267,721	$—	$—	$267,721
Digital assets	222,000	—	—	222,000
Total assets measured at fair value on a recurring basis	$489,721	$—	$—	$489,721
Liabilities:
Contingent value rights1	$3,366	$—	$—	$3,366
Warrant liabilities, net of current portion	936,107	—	—	936,107
Total liabilities measured at fair value on a recurring basis	$939,473	$—	$—	$939,473

1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s condensed consolidated balance

sheets, based on the expected timing of settlement.

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 March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026

	Carrying Amount	Fair Value	Fair Value Hierarchy
3.00% Convertible Senior Notes due 2029	$460,000	$738,262	Level 1
0.00% Convertible Senior Notes due 2031	$625,000	$686,413	Level 1

December 31, 2025

	Carrying Amount	Fair Value	Fair Value Hierarchy
3.00% Convertible Senior Notes due 2029	$460,000	$718,609	Level 1
0.00% Convertible Senior Notes due 2031	$625,000	$657,735	Level 1

Nonrecurring Fair Value Measurements

The Company measures certain non-financial assets at fair value on a nonrecurring basis when events or circumstances indicate

that the carrying amount may not be recoverable. During the three months ended March 31, 2026, the Company measured the fair

value of its mining-related long-lived asset groups in connection with the impairment charges described in Note 3 — Property, Plant,

and Equipment.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table presents the fair value of assets measured on a nonrecurring basis during the three months ended March 31,

2026 (in thousands):

	Level 1	Level 2	Level 3	Fair value
Mining equipment	$—	$30,564	$—	$30,564
Mining infrastructure	$—	$—	$42,772	$42,772

The fair value of mining equipment was determined using a market approach based on observable pricing from published

secondary market indices for digital asset mining hardware, classified as Level 2 within the fair value hierarchy.

The fair value of mining infrastructure was determined using an income approach based on a discounted cash flow analysis of a

hypothetical colocation hosting arrangement, classified as Level 3 within the fair value hierarchy. The following table presents the

significant unobservable inputs used in the Level 3 measurement:

Significant Unobservable Input		Value
Discount rate		15% - 18%
Hosting rate ($/kW)		$2.25 - $2.50
Projection period		10 years

The Company’s financial instruments, which 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, debt and certain accrued

expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amounts of these

financial instruments materially approximate their fair values.

9. COMMITMENTS AND CONTINGENCIES

Commitments

As of ~~March~~June 3130, 2026, the Company had approximately $1.470 billion of expected future cash expenditures under its outstanding purchase and construction commitments, primarily related to infrastructure development costs, power utility deposits, equipment procurement, and labor. These commitments relate to the remaining build out at existing customer conversion sites, and new greenfield development undertaken for prospective customers. Of this amount, $264 million will be passed through to the Company’s customer as invoiced. Substantially all of these expenditures are expected to occur within the next 12 months.

~~purchase~~The ~~and~~Company routinely engages with construction ~~commitments~~vendors for the construction of its facilities. These engagements are governed by contracts containing standard terms and conditions, ~~primarily~~including ~~related~~certain milestones that obligate the Company to ~~infrastructure~~pay ~~development~~as ~~costs~~work is completed. In the event of termination of any of these contracts by the Company, ~~power~~the ~~utility~~Company ~~deposits~~would be liable for all work that has been completed or is in process, ~~equipment~~plus any applicable fees. The Company generally has the right to cancel open purchase orders prior to delivery or terminate the contracts without cause.

~~procurement,~~Polaris ~~and~~DS ~~labor.~~LLC ~~These~~Merger ~~commitments relate to the remaining build out at existing customer conversion sites, and new~~ Agreement

~~greenfield~~On ~~development~~May ~~undertaken~~5, 2026, the Company entered into an Agreement and Plan of Merger to acquire Polaris DS LLC, which owns an approximately 40-acre site adjacent to the Company's existing Muskogee, Oklahoma data center operations, which contains an electrical substation, and electric service agreements providing for ~~prospective~~up ~~customers~~to 440 MW of gross utility power capacity. OfThe ~~this~~aggregate ~~amount~~purchase price is approximately $421 million in cash, subject to customary adjustments, and will be increased by an additional $~~434~~40 million in cash in the event that an additional 40 MW of firm electric capacity becomes available to Polaris DS LLC prior to December 31, 2026.0 As of June 30, 2026, the Company had deposited $120 million in cash into an escrow account, recorded in "Restricted cash, current portion" on the condensed consolidated balance sheets, which will be ~~passed~~applied ~~through~~to the purchase price at closing. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2026.

~~Company’s~~Block, ~~customer as invoiced~~Inc. ~~Substantially~~Contract ~~all of these expenditures are expected to occur within the next 12 months.~~ Termination

~~The~~During the three months ended June 30, 2026, the Company ~~routinely~~entered ~~engages~~into a termination and settlement agreement with ~~construction~~Block, ~~vendors~~Inc. ~~for~~and Proto Global LLC that terminated the ~~construction~~Company's existing contract and all future delivery obligations of ~~its~~mining ~~facilities~~equipment thereunder. ~~These~~As ~~engagements~~a ~~are~~result, the Company recognized a loss of $41.9 million within "Loss on contract termination" in the condensed consolidated statements of operations for the three and six months ended June 30, 2026.

governed by contracts containing standard terms and conditions, including certain milestones that obligate the Company to pay as

work is completed. In the event of termination of any of these contracts by the Company, the Company would be liable for all work

that has been completed or is in process, plus any applicable fees. The Company generally has the right to cancel open purchase orders

prior to delivery or terminate the contracts without cause.

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.

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 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. The Company 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.

~~chief~~On ~~executive~~December ~~officer~~7, ~~Michael~~2023, ~~Levitt~~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 ~~others~~denied inplaintiff’s Motion for Class Treatment under Fed. R. Bankr. P. 7023. No individual proof of claim was filed by any of the ~~United~~class ~~States~~representatives ~~District~~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, ~~Western~~2024. ~~District~~On ~~(Austin)~~January 29, 2024, plaintiff filed a notice of ~~Texas~~appeal ~~asserting~~of ~~that~~the order confirming the Company’s Plan of Reorganization.

~~the Company violated the Securities Act and Exchange Act by allegedly failing to disclose to investors that among other things the~~ 21

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Company~~On ~~was~~June ~~vulnerable~~7, to2024, ~~litigation~~Plaintiff ~~given~~refiled its ~~decision~~complaint asserting that the individual defendants violated the Securities Exchange Act by allegedly failing to ~~pass~~disclose ~~power~~to ~~costs~~investors that among other things the Company failed to ~~its~~disclose ~~customers,~~known trends or uncertainties that ~~certain~~would ~~clients~~have ~~had~~an ~~breached~~impact ~~their~~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.

~~contracts~~On March 7, ~~and~~2025, ~~that~~the ~~this~~United ~~impacted~~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 ~~profitability~~motion to dismiss, dismissed without prejudice Company's motion to dismiss as moot and ~~ability~~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 ~~continue~~the Plaintiffs as amoot ~~going~~in ~~concern~~light of the administrative closure of the securities case brought by the Plaintiffs in the United States District Court Western District of Texas. ~~The~~On ~~complaint~~April ~~seeks~~2, ~~monetary~~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) each of which was denied and as to which Plaintiff has appealed.

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) each of which was denied

and as to which Plaintiff has appealed.

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. The matter was settled during the three months ended December 31, 2025, with the Company’s satisfying its existing indemnification obligation through a payment of $0.5 million made during the three months ended March 31, 2026. This payment is reflected in “Other non-operating expenses, net” in the Company’s condensed consolidated statements of operations.

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. The matter was

settled during the quarter ended December 31, 2025, with the Company’s payment in satisfaction of its existing indemnification

obligation. This payment is reflected in the Loss on legal settlements in the Company’s condensed consolidated statements of

operations.

Patent Infringement Claim

Malikie Innovations Ltd and Key Patents Innovations Ltd. (“Malikie”), 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). On November 14, 2025 Malikie filed a motion to amend the complaint to add allegations of infringement of U.S. Patent No. 8,712,039 by the Company’s bitcoin mining business and its HPC business. Malikie also asserted infringement of the previously asserted 8,532,286 patent against the Company’s HPC business. All motions are pending. The court set a trial date of January 25, 2027.

~~District~~Leases—See ofNote ~~Texas~~6 ~~Marshall~~— ~~Division~~Leases ~~against~~for ~~Core~~additional ~~Scientific, Inc~~information. ~~(the “Company”) alleging infringement in the Company’s bitcoin~~

~~mining business of U~~11.S. INCOME ~~Patent Nos. 8,788,827; 10,284,370; 8,666,062; 7,372,960; and 8,532,286. On July 20, 2025 the Company~~ TAXES

~~filed~~Current aincome ~~motion~~tax toexpense ~~dismiss~~represents the ~~claims~~amount expected to be reported on the ~~basis~~Company’s ~~that~~income tax returns, and deferred tax expense or benefit represents the ~~patents~~change ~~are~~in ~~invalid~~net ~~under~~deferred 35tax Uassets and liabilities.~~S.C~~ ~~§101~~Deferred tax assets and liabilities are determined based on ~~July~~the ~~25,~~difference ~~2025~~between the ~~Company~~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.

~~filed~~The afollowing ~~motion~~table topresents ~~transfer~~income ~~the~~tax ~~case~~expense toand ~~the~~effective ~~United~~income ~~States~~tax ~~District~~rate ~~Court~~ for the ~~Western~~periods ~~District~~indicated ~~of Texas~~ (~~Austin).~~dollars Onin ~~November 14,~~ thousands):

2025 Malikie filed a motion to amend the complaint to add allegations of infringement of U.S. Patent No. 8,712,039 by the


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Income tax expense	$	1,907		$	158		$	2,507		$	363
Effective income tax rate	(0.2)		%	—		%	(0.2)		%	(0.1)		%

~~Company’s bitcoin mining business and its HPC business. Malikie also asserted infringement of the previously asserted 8,532,286~~ 22

patent against the Company’s HPC business. All motions are pending. The court set a trial date of January 25, 2027.

Leases—See Note 5 — Leases for additional information.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

10For the three and six months ended June 30, 2026 and 2025, income tax expense consisted of discrete state taxes. ~~INCOME~~ ~~TAXES~~The Company’s estimated annual effective income tax rate without consideration of discrete items was (0.2)% and 0.0% for 2026 and 2025, respectively, compared to the U.S. federal statutory rate of 21.0%. The difference from the statutory rate for the three and six months ended June 30, 2026 was primarily driven by projected changes in the valuation allowance. The difference from the statutory rate for the three and six months ended June 30, 2025 was primarily driven by nondeductible losses on warrant and contingent value right liabilities. The Company has a full valuation allowance on its net deferred tax assets as evidence indicates it is not more likely than not that such asset will be realized.

~~Current~~12. STOCK-BASED ~~income~~COMPENSATION ~~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

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.

The income tax expense and effective income tax rate for the three months ended March 31, 2026 and 2025 were as follows:

	Three Months Ended March 31,
	2026	2025
(in thousands, except percentages)
Income tax expense	$600	$205
Effective income tax rate	(0.2)%	—%

For the three months ended March 31, 2026, the Company recorded $0.6 million 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 (0.2)%,

compared to the U.S. federal statutory rate of 21.0% due to projected changes in the valuation allowance (17.5)%, state taxes 0.7%,

non-deductible loss on warrant and contingent liabilities (3.2)% and other items (1.2)%. The Company has a full valuation allowance

on its net deferred tax asset as evidence indicates that it is not more likely than not expected to realize such asset.

For the three months ended March 31, 2025, the Company recorded $0.2 million 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 2.8%, state taxes (0.1)%,

non-deductible loss on warrant and contingent liabilities (24.6)% and other items 0.9%. The Company has a full valuation allowance

on its net deferred tax asset as evidence indicates that it is not more likely than not expected to realize such asset.

11. STOCK-BASED COMPENSATION

Incentive Plan

The Company ~~adopted~~maintains an equity-based ~~management~~ incentive plan ~~on April 26, 2024~~ (the “"Incentive Plan”"), under which ~~was~~it grants RSUs, MSUs, and PSUs to employees and executive officers.

~~amended~~Performance ~~and~~Share ~~restated on May 12, 2025 to increase the number of shares authorized for issuance from 40,000,000 to 48,000,000.~~ Units

~~Under~~PSUs are granted to certain executive officers under the Incentive Plan, ~~certain~~and ~~executives~~are ~~have~~subject ~~been~~to ~~granted~~satisfaction ~~market~~of a service condition ~~restricted~~and ~~stock~~the ~~units~~achievement ~~(“MSUs”)~~of ~~which~~market or performance conditions during a defined measurement period. In April 2025, the Company granted PSUs that are eligible to vest in three equal annual installments through March 2028, subject to continued service and the achievement of market and performance conditions, with the number of shares earned ranging from 0% to 300% of target based on the achievement of the applicable conditions during each measurement period.

In May 2026, the Company granted additional PSUs eligible to cliff vest on March 15, 2029, subject to continued service and the achievement of market~~-based~~ ~~share~~and ~~price~~performance ~~goals~~conditions, including RTSR, energized megawatt growth, and new customer acquisition, over the ~~executives’~~2026 ~~continued~~through ~~service~~2028 ~~until~~calendar years. The number of shares earned ranges from 0% to 200% of target, and up to 250% of target for the ~~relevant~~Chief ~~vesting~~Executive ~~date~~Officer. The ~~number~~grant date fair value of the tranche subject to the RTSR market condition was estimated using a Monte Carlo simulation model, using the following assumptions:

shares which vest as of the end of each measurement period on each vesting date are conditioned on the highest 20-day volume


			May 2026 Grant
Expected term of awards in years			2.6
Expected volatility			85%
Risk-free interest rate			4.01%
Expected dividend yield			0%

~~weighted~~Restricted ~~average~~Stock ~~price of the Company's share price achieved during the tranche’s measurement vesting period since grant. The MSU~~ Units

~~vesting~~RSUs ~~schedule~~are isgranted ~~proportionate~~to employees and executive officers under the Incentive Plan and generally vest over a three-year service period, ~~where~~based ~~such~~on ~~proportions~~continued ~~are~~service. ~~identified as tranches with separate~~

~~service~~Market ~~conditions~~Condition ~~and~~Restricted ~~measurement~~Stock ~~periods for the market conditions. If certain market-based share price goals are not met during~~ Units

~~certain~~MSUs ~~tranche~~vest ~~measurement~~based ~~periods,~~on the ~~ability~~achievement toof ~~satisfy~~share ~~such~~price goals ~~apply~~over ina ~~subsequent~~defined measurement ~~periods~~period. ~~and~~For ~~permit~~the vesting ifschedule and additional terms of outstanding MSU awards, see Note 13 - Stockholders’ Deficit in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

~~such market conditions are then met (and the service conditions are then satisfied). The following table presents additional information~~ 23

relating to each MSU award:

Share Price Goal	Incremental Units	Tranche Cumulative Units
December 31, 2026 Vesting:
$3.14	142,049	142,049
$5.00	142,049	284,099
$8.00	142,049	426,148
$10.00	142,049	568,197
$12.00	142,049	710,247
$14.00	142,049	852,296

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

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.

Stock-Based Compensation

The following table summarizes RSU, MSU, and PSU activity for the six months ended June 30, 2026 (shares in thousands):

Restricted Stock Units — RSUs granted in 2026 and 2025 generally vest over a 3-year service period.


	Restricted Stock Units			Market Condition Restricted Stock Units			Performance 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, 2025	13,270	$	8.58	844	$	6.14	5,519	$	11.57
Granted	2,077	19.96		8	3.99		1,717	29.31
Performance adjustment(1)	—	—		—	—		(1,471)	11.57
Vested	(3,454)	9.62		—	—		(1,840)	15.71
Forfeited	(262)	8.56		—	—		—	—
Unvested - June 30, 2026	11,631	$	10.24	852	$	6.14	3,925	$	20.24

~~Market~~(1)Represents ~~Condition~~the ~~Restricted~~adjustment ~~Stock~~to ~~Units~~PSUs —to ~~See~~reflect ~~“Incentive~~the ~~Plan”~~number ~~above~~earned ~~for~~based on achievement of the ~~vesting~~applicable market and performance conditions of(0% ~~the~~to ~~MSUs~~300% of target).

The following table presents unrecognized compensation cost and the related weighted-average period over which the cost is expected to be recognized as of June 30, 2026 (dollars in thousands):

A summary of RSU, MSU and PSU activity for the three months ended March 31, 2026, is as follows (amounts in thousands,


	Unrecognized Compensation Cost		Weighted-Average Recognition Period
RSUs	$	99,093	2.0 years
PSUs	62,631		2.5 years
MSUs	994		0.5 years
Total	$	162,718

~~except~~The ~~per~~following ~~share~~table ~~amounts~~presents the stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the periods indicated (in thousands):

	Restricted Stock Units			Market Condition Restricted Stock Units		Performance Restricted Stock Units
		Three Months Ended June 30,							Six Months Ended June 30,
	Number ofShares	Weighted-AverageGrant Date FairValue		Number ofShares	Weighted-AverageGrant Date FairValue	Number ofShares		Weighted-AverageGrant Date FairValue
		2026				2025			2026		2025
Unvested - January 1, 2026	13,270	$8.58		844	$6.14	5,519		$11.57
Cost of revenue		$	1,283			$	941		$	2,136	$	2,323
Granted	928	16.36		8	3.99	—		—
Colocation organizational and site startup costs		4,302				4,638			8,526		7,590
Performance adjustment	—	—		—	—	(1,472)		11.57
Selling, general and administrative		12,655				18,592			25,339		30,442
Vested	(1,846)	9.99		—	—	(1,840)		15.71
Stock-based compensation expense, net of amounts capitalized(1)		18,240				24,171			36,001		40,355
Forfeited	(77)	7.11		—	—	—
Capitalized stock-based compensation(2)		519				176			1,145		396
Unvested - March 31, 2026	12,275	$8.90		852	$6.14	2,207		$13.18
Total stock-based compensation cost		$	18,759			$	24,347		$	37,146	$	40,751

As(1)The ofsix ~~March 31,~~months ~~2026~~ended June 30, ~~unrecognized~~2025 includes $3.0 million of stock-based compensation ~~cost~~expense ~~and~~as ~~the~~a ~~related~~result ~~weighted-average~~of ~~period~~accelerated ~~over~~vesting ~~which~~of ~~the~~outstanding ~~cost~~RSUs isfor former board members.

~~expected~~(2)Represents tothe beamounts ~~recognized~~of ~~for~~stock-based ~~each~~compensation ~~award~~capitalized ~~type~~to ~~were~~property, asplant, ~~follows~~and ~~(in thousands):~~equipment.

	Unrecognized Compensation Cost	Weighted-Average Recognition Period
RSUs	$91,517	1.9 years
PSUs	18,178	2.0 years
MSUs	1,485	0.8 years
Total	$111,180

13. NET LOSS PER SHARE

27Basic EPS is measured as the net loss available to common stockholders divided by the weighted average common shares outstanding for the period. Diluted EPS reflects the potential dilution from unvested RSUs, PSUs, and MSUs, conversion of convertible securities using the if-converted method, and exercise of options and warrants using the treasury stock method. When potentially dilutive securities have an antidilutive effect they are excluded from the diluted EPS calculation.

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 June 30, 2026, approximately 6.6 million shares of common stock remain issuable upon the exercise of the Tranche 2 Warrants and are included in weighted average shares outstanding for the three and six months then ended. The basic EPS numerator is adjusted to eliminate changes in fair value of Tranche 2 Warrants recognized in net loss.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Stock-based~~The ~~compensation~~2029 ~~expense~~and ~~for~~2031 Convertible Notes were excluded from the ~~three~~computation ~~months~~of ~~ended~~diluted ~~March 31,~~EPS ~~2026~~for ~~and~~all ~~2025,~~periods ispresented ~~included~~as intheir inclusion would be antidilutive given the Company’s net loss position in all periods.

~~condensed~~The ~~consolidated~~following ~~statements~~table presents the reconciliation of ~~operations~~the asnumerators ~~follows~~and denominators used to compute basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):

	Three Months Ended March 31,
		Three Months Ended June 30,				Six Months Ended June 30,
	~~2026~~	~~2025~~2026		2025		2026		2025
Cost of revenue	$853	$1,382
Numerator:
Colocation organizational and site startup costs	4,224	—
Net loss		$	(1,155,310)	$	(936,799)	$	(1,502,498)	$	(360,548)
Selling, general and administrative	12,684	14,803
Add: Change in fair value of Tranche 2 Warrants		74,234		923,525		78,995		289,104
Stock-based compensation expense, net of amounts capitalized	17,761	16,185
Basic and diluted net loss		$	(1,081,076)	$	(13,274)	$	(1,423,503)	$	(71,444)
Capitalized stock-based compensation1	626	220
Denominator:
Total stock-based compensation cost	$18,387	$16,405
Weighted average shares outstanding - basic and diluted		325,329		317,985		324,128		316,593
Net loss per share - basic and diluted		$	(3.32)	$	(0.04)	$	(4.39)	$	(0.23)

1The ~~Represents~~following table presents potentially dilutive securities excluded from the ~~amounts~~calculation of ~~stock-based~~diluted ~~compensation~~EPS ~~capitalized~~because totheir ~~property,~~inclusion ~~plant,~~would ~~and~~be ~~equipment.~~anti-dilutive (in thousands):

12. NET (LOSS) INCOME PER SHARE



	June 30, 2026	June 30, 2025
Convertible Notes	69,611	69,611
RSUs, PSUs, and MSUs	16,408	25,204
Stock options	334	344
Tranche 1 Warrants	96,361	97,542
Total shares issuable from potentially dilutive securities	182,714	192,701

~~Basic~~14. SEGMENT ~~earnings per share (“EPS”) is measured as the income or loss available to common stockholders divided by the weighted~~ REPORTING

~~average~~The ~~common~~Company ~~shares~~has ~~outstanding~~three ~~for~~operating ~~the~~segments: ~~period.~~Colocation, ~~Upon~~Digital ~~exercise~~Asset ~~of the Tranche 2 Warrants~~Self-Mining, ~~shares~~and ~~are~~Digital ~~issuable~~Asset ~~for~~Hosted ~~little or no~~ Mining.

~~consideration,~~The ~~sometimes~~Colocation ~~referred~~segment provides HDC services to customers employing AI and HPC workloads and generates revenue through licensing agreements and orders with licensees that include fixed and variable payments on a recurring basis. The Digital Asset Self-Mining segment performs digital asset mining for the Company’s own account and generates revenue from operating owned digital infrastructure and computer equipment as ~~“penny~~part ~~warrants”~~of mining pools in exchange for digital assets. ~~Under~~The ~~ASC~~Digital ~~260~~Asset Hosted Mining segment provides hosting services to third-~~10-45-13,~~parties ~~those~~for ~~issuable~~digital ~~shares~~asset ~~are~~mining ~~considered~~through ~~outstanding~~consumption-based contracts.

inThe Company’s Chief Executive Officer is the ~~computation~~CODM. ofThe ~~basic~~CODM ~~EPS~~uses ~~whether~~gross orprofit ~~not~~to ~~related~~evaluate ~~warrants~~segment ~~have~~performance ~~been~~and ~~exercised~~allocate resources. AtGross ~~March 31~~profit is used to evaluate actual results against expectations based on comparable prior results, ~~2026~~current budget, ~~approximately~~and 7current forecast, and to inform decisions about how profits and cash flows will be reinvested or otherwise deployed.~~8 million~~ 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 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; these items are presented in the reconciliation of segment gross profit to consolidated loss before income taxes below.

~~shares of common stock remain issuable upon the exercise of the Tranche 2 Warrants and are included in the number of outstanding~~ 25

shares used for the computation of basic EPS for the three 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) income.

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 is 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 (loss)

income per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2026	2025
Numerator:
Net (loss) income	$(347,188)	$576,251
Add: Change in fair value of Tranche 2 Warrants	4,750	(127,372)
Basic and diluted net (loss) income	$(342,438)	$448,879
Denominator:
Weighted average shares outstanding - basic	322,911	315,186
Effect of dilutive securities:
Tranche 1 Warrants	—	39,232
RSUs, PSUs, and MSUs	—	8,896
Weighted average shares outstanding - diluted	322,911	363,314
Net (loss) income per share - basic	$(1.06)	$1.42
Net (loss) income per share - diluted	$(1.06)	$1.24

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

~~Potentially~~The ~~dilutive~~following ~~securities~~table ~~include~~presents ~~securities~~revenue ~~excluded~~and ~~from~~gross ~~the~~profit ~~calculation~~by ofreportable ~~diluted~~segment ~~EPS~~for ~~because~~the toperiods doindicated so(dollars ~~would~~in bethousands): ~~anti-~~

dilutive. Shares which may be issued from potentially dilutive securities are as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Colocation Segment
Colocation revenue:
License fees	$	98,812		$	7,010		$	158,008		$	13,005
Power fees passed through to customer	35,073			3,464			56,132			6,050
Maintenance and other	2,784			86			68			78

Total colocation revenue	136,669			10,560			214,208			19,133
Cost of colocation services:
Power fees passed through to customer	35,073			3,464			56,132			6,050
Depreciation expense	4,621			104			6,696			171
Employee compensation	4,801			1,148			7,787			2,442
Facility operations expense	10,381			4,336			17,136			8,187
Other segment items(1)	1,810			378			2,553			686

Total cost of colocation services	56,686			9,430			90,304			17,536
Colocation gross profit	$	79,983		$	1,130		$	123,904		$	1,597

Colocation gross margin	59		%	11		%	58		%	8		%






Digital Asset Self-Mining Segment
Digital asset self-mining revenue	$	21,535		$	62,424		$	51,640		$	129,603
Cost of digital asset self-mining:
Power fees	17,861			30,720			45,131			61,039
Depreciation expense	9,897			18,058			23,806			37,317
Employee compensation	4,052			8,272			7,579			15,607
Facility operations expense	1,286			2,089			3,258			5,369
Other segment items(1)	604			450			1,115			1,427
Total cost of digital asset self-mining	33,700			59,589			80,889			120,759
Digital Asset Self-Mining gross profit (loss)	$	(12,165)		$	2,835		$	(29,249)		$	8,844
Digital Asset Self-Mining gross margin	(56)		%	5		%	(57)		%	7		%

Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers	$	5,997		$	5,644		$	13,597		$	9,417
Cost of digital asset hosted mining services:
Power fees	2,356			3,208			5,659			4,574
Depreciation expense	626			334			931			479
Employee compensation	542			779			969			1,110
Facility operations expense	167			220			401			368
Other segment items(1)	80			43			142			89
Total cost of digital asset hosted mining services	3,771			4,584			8,102			6,620
Digital Asset Hosted Mining gross profit	$	2,226		$	1,060		$	5,495		$	2,797
Digital Asset Hosted Mining gross margin	37		%	19		%	40		%	30		%


Consolidated
Consolidated total revenue	$	164,201		$	78,628		$	279,445		$	158,153
Consolidated cost of revenue	$	94,157		$	73,603		$	179,295		$	144,915
Consolidated gross profit	$	70,044		$	5,025		$	100,150		$	13,238
Consolidated gross margin	43		%	6		%	36		%	8		%

	Three Months Ended March 31,
	2026	2025
Convertible Notes	69,611	69,611
RSUs, PSUs, and MSUs	15,334	1,249
Stock options	344	321
Tranche 1 Warrants	96,654	—
Total shares issuable from potentially dilutive securities	181,943	71,181

(1)Other segment items consist primarily of software and IT costs, travel, professional and contract services, and telecommunications costs.

~~13. SEGMENT REPORTING~~26

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: “Colocation”, consisting of providing high-density colocation services to

customers employing AI and HPC related workloads; “Digital Asset Self-Mining”, consisting of performing digital asset mining for

its own account; and “Digital Asset Hosted Mining”, consisting of providing hosting services to third-parties for digital asset mining.

The Colocation operation generates revenue through licensing agreements and orders with licensees that include fixed and variable

payments on a recurring basis. 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 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

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.

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table presents ~~revenue~~a ~~and~~reconciliation of total reportable segment gross profit byto ~~reportable~~consolidated ~~segment~~loss before income taxes included in the Company’s condensed consolidated statements of operations for the periods ~~presented~~indicated (in thousands):

	Three Months Ended March 31,
		Three Months Ended June 30,				Six Months Ended June 30,
	~~2026~~	~~2025~~2026		2025		2026		2025
(in thousands, except percentages)Colocation Segment
Reportable segment gross profit		$	70,044	$	5,025	$	100,150	$	13,238
Colocation revenue:
Loss (gain) on fair value of digital assets		9,368		(29,797)		15,926		(19,109)
License fees	$59,195	$5,995
Loss on disposal of property, plant and equipment		1,273		4,166		14,911		4,172
Power fees passed through to customer	21,059	2,586
Loss on remeasurement of assets held for sale		19,495		—		19,495		—
Maintenance and other	(2,715)	(8)
Impairment of property, plant and equipment		—		—		266,488		—
Total colocation revenue	77,539	8,573
Loss on contract termination		41,948		—		41,948		—
Cost of colocation services:
Colocation organizational and site startup costs		27,039		11,655		35,704		23,322
Power fees passed through to customer	21,059	2,586
Selling, general and administrative		49,389		45,285		94,568		78,175
Depreciation expense	2,075	67
Operating loss		(78,468)		(26,284)		(388,890)		(73,322)
Employee compensation	2,986	1,295
Non-operating expenses (income), net:
Facility operations expense	6,755	3,852
Loss on debt extinguishment		5,435		1,377		5,435		1,377
Other segment items	743	306
Interest expense (income), net		23,833		(1,185)		28,690		(3,372)
Total cost of colocation services	33,618	8,106
Change in fair value of warrants and contingent value rights		1,045,515		909,958		1,076,314		288,494
Colocation gross profit	$43,921	$467
Other non-operating expense, net		152		207		662		364
Colocation gross margin	57%	5%
Total non-operating expense, net		1,074,935		910,357		1,111,101		286,863
Digital Asset Self-Mining Segment
Loss before income taxes		$	(1,153,403)	$	(936,641)	$	(1,499,991)	$	(360,185)
Digital asset self-mining revenue	$30,105	$67,179
Cost of digital asset self-mining:
Power fees	27,271	30,319
Depreciation expense	13,909	19,259
Employee compensation	3,527	7,335
Facility operations expense	1,972	3,280
Other segment items	510	977
Total cost of digital asset self-mining	47,189	61,170
Digital Asset Self-Mining gross profit	$(17,084)	$6,009
Digital Asset Self-Mining gross margin	(57)%	9%
Digital Asset Hosted Mining Segment
Digital asset hosted mining revenue from customers	$7,600	$3,773
Cost of digital asset hosted mining services:
Power fees	3,303	1,367
Depreciation expense	306	145
Employee compensation	427	332
Facility operations expense	234	148
Other segment items	61	44
Total cost of digital asset hosted mining services	4,331	2,036
Digital Asset Hosted Mining gross profit	$3,269	$1,737
Digital Asset Hosted Mining gross margin	43%	46%
Consolidated
Consolidated total revenue	$115,244	$79,525
Consolidated cost of revenue	$85,138	$71,312
Consolidated gross profit	$30,106	$8,213
Consolidated gross margin	26%	10%

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

A reconciliation of the reportable segment gross profit to (loss) income before income taxes included in the Company’s

condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025, is as follows (in thousands):

	Three Months Ended March 31,
	2026	2025
Reportable segment gross profit	$30,106	$8,213
Decrease in fair value of digital assets	6,558	10,688
Loss on disposal of property, plant and equipment	13,638	6
Impairment of property, plant and equipment	266,488	—
Colocation organizational and site startup costs	8,665	11,667
Advisor fees	333	603
Selling, general and administrative	44,846	32,287
Operating loss	(310,422)	(47,038)
Non-operating expenses (income), net:
Interest expense (income), net	4,857	(2,187)
Change in fair value of warrants and contingent value rights	30,799	(621,464)
Loss on legal settlements	500	—
Other non-operating expense, net	10	157
Total non-operating expense (income), net	36,166	(623,494)
(Loss) income before income taxes	$(346,588)	$576,456

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 and accounts receivable. Credit risk with respect to accounts receivable is concentrated with a small number of customers. 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 June 30, 2026 and December 31, 2025, all of the Company’s fixed assets were located in the United States. For the three and six months ended June 30, 2026 and 2025, all of the Company’s revenue was generated in the United States. For the three months ended June 30, 2026 and 2025, 13% and 80%, respectively, of the Company’s total revenue was generated from one customer in the Digital Asset Self-Mining segment. For the six months ended June 30, 2026 and 2025, 18% and 82%, respectively, of the Company’s total revenue was generated from one customer in the Digital Asset Self-Mining segment. For the three months ended June 30, 2026 and 2025, 83% and 13%, respectively, of the Company’s total revenue was generated from one customer in the Colocation segment. For the six months ended June 30, 2026 and 2025, 77% and 12%, respectively, of the Company’s total revenue was generated from one customer in the Colocation segment. As of June 30, 2026 and December 31, 2025, substantially all of the Company’s digital assets were held by one third-party digital asset service.

~~equivalents and accounts receivable. Credit risk with respect to accounts receivable is concentrated with a small number of customers.~~ 27

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 March 31, 2026 and December 31, 2025, all of the Company’s fixed assets

were located in the United States. For the three months ended March 31, 2026 and 2025, all of the Company’s revenue was generated

in the United States. For the three months ended March 31, 2026 and 2025, 26% and 84%, respectively, of the Company’s total

revenue was generated from one customer in the Digital Asset Self-Mining segment. For the three months ended March 31, 2026 and

2025, 67% and 11%, respectively, of the Company's total revenue was generated from one customer in the Colocation segment. As of

March 31, 2026 and December 31, 2025, substantially all of the Company’s digital assets were held by one third-party digital asset

service.

14. SUPPLEMENTAL CASH FLOW AND NONCASH INFORMATION

The following table presents supplemental cash flow and non-cash information for the periods presented (in thousands):

	Three Months Ended March 31,
	2026	2025
Supplemental disclosure of other cash flow information:
Cash paid for interest	$6,905	$7,822
Income tax (refunds) payments	$(1)	$1
Supplemental disclosure of noncash investing and financing activities:
Purchases of PP&E in accounts payable and accrued expense	$205,232	$48,668
Noncash exercise of warrants	$483	$18,776
Noncash asset retirement obligation addition	$976	$—

Core Scientific, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

15. SUBSEQUENT EVENTS

On July 27, 2026, the Company entered into Lease Agreements (collectively, the “AMD Leases”) with Advanced Micro Devices, Inc. (“AMD”) for an aggregate of 377 MW of critical IT capacity at the Company’s Pecos, TX; Muskogee, OK; and Hunt County, ~~Acquisition~~TX sites; and Lease Agreements (the “Neocloud Leases,” and collectively with the AMD Leases, the “Leases”) with a Neocloud (“Neocloud”), for 152 MW of critical IT capacity at the Company’s Auburn, AL and Dalton Phase 3, GA sites. Each of the Leases is for a fifteen year term with three five-year options. The AMD Leases provide AMD a reservation of capacity right to lease from the Company at certain times and under certain circumstances an additional 1,925 MWs of critical IT capacity through December 28, 2028.

OnIn ~~May~~connection 5,with ~~2026~~the Neocloud Leases, each of the Company, ~~completed~~Neocloud ~~its~~and ~~acquisition~~AMD has entered into a Credit Support Agreement with respect to each Neocloud Lease: (i) establishing protections for AMD equipment held within the applicable Neocloud Lease premises, (ii) providing AMD the right, but not the obligation, to cure certain defaults of ~~100%~~Neocloud under the applicable Neocloud Lease, and (iii) establishing AMD’s rights and obligations in the event of certain material defaults by a Neocloud with respect to the ~~membership~~applicable ~~interests~~Neocloud Lease. Each Credit Support Agreement will terminate automatically upon earliest to occur of ~~Telios~~the ~~Quinlan~~expiration ~~One~~of the applicable Neocloud Lease, ~~LLC~~specified circumstances relating to the insolvency or default of Neocloud, and 15 years from the effective date of the applicable Neocloud Lease. In addition, AMD may terminate the applicable Credit Support Agreement upon the Company’s breach of a material representation, subject to a specified cure period.

~~Delaware~~In ~~limited~~addition, ~~liability~~the ~~company~~Company ~~that~~issued ~~owns~~to ~~approximately~~AMD ~~260~~a ~~acres~~warrant (the “Warrant”) to purchase up to 30 million shares (the “Warrant Shares”) of ~~land~~the inCompany’s ~~Hunt~~common ~~County~~stock, ~~Texas~~par value $0.00001 per share (“Common Stock”) at an exercise price of $23.47 per share, ~~together~~which ~~with~~represents the volume-weighted average price of the Company’s Common Stock on the Nasdaq Global Select Market for the five trading days prior to execution of the Leases. The Warrant is exercisable immediately, subject to satisfaction of the vesting conditions therein, and will terminate on July 27, 2031. The Warrant Shares will vest at a ~~related~~rate ~~electric~~of 12,222 shares per megawatt of critical IT load under the signed agreements. As a result of the Leases executed on July 27, 2026, an aggregate of approximately 6.5 million Warrant Shares vested and became exercisable.

~~service~~The ~~agreement~~warrant ~~with~~and ~~Farmers~~underlying ~~Electric~~shares ~~Cooperative,~~were ~~Inc.~~not ~~for~~registered anunder ~~approximately~~the ~~430~~Securities MWAct ~~project,~~and ~~which~~were ~~the~~issued in reliance on Section 4(a)(2). The Company ~~intends~~is toevaluating the accounting treatment, including measurement and classification.

~~develop as a future data center site. The aggregate purchase price was approximately $232.5 million in cash, of which a $2.0 million~~ 28

deposit was paid in January 2026 and is included in Other current assets on the condensed consolidated balance sheet as of March 31,

2026. In January 2026, in connection with the related electric service agreement, the Company posted $33.0 million of cash collateral

to Farmers Electric Cooperative, Inc., which is included in Other noncurrent assets on the condensed consolidated balance sheet as of

March 31, 2026.

Polaris DS LLC Merger Agreement

On May 5, 2026, the Company entered into an Agreement and Plan of Merger to acquire Polaris DS LLC, which owns an

approximately 40-acre site adjacent to the Company's existing Muskogee, Oklahoma data center operations and electric service

agreements providing for up to 440 MW of gross utility power capacity. The aggregate purchase price is approximately $421 million

in cash, subject to customary adjustments and certain contingent payments. Concurrently with execution, the Company deposited an

additional $60 million into the existing escrow account, bringing the total deposit (recorded in restricted cash) to $120 million, which

will be applied to the purchase price at closing. The transaction is subject to customary closing conditions and is expected to close in

the third quarter of 2026.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless the context otherwise requires, all references in this section to “we,” “us,” “our,” the “Company,” “Core Scientific,” or “Core” refer to Core Scientific, Inc. and its subsidiaries.

orThe following Management's Discussion and Analysis of Financial Condition and Results of Operations (“~~Core~~MD&A”) ~~refer~~is intended to ~~Core~~promote ~~Scientific~~understanding of the results of operations and financial condition of the Company. This MD&A is provided as a supplement to, ~~Inc~~and should be read in conjunction with, our unaudited condensed consolidated financial statements and the accompanying notes to the unaudited condensed consolidated financial statements (Part I, Item 1 of this Form 10-Q) as well as the financial and other information included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 2, 2026. This section generally discusses the results of operations for the three and ~~its~~six ~~subsidiaries~~months ended June 30, 2026, compared to June 30, 2025.

~~The~~As discussed in the section titled “Cautionary Note Regarding Forward-Looking Statements,” the following ~~Management's~~discussion ~~Discussion~~and analysis contains forward-looking statements that involve risks and ~~Analysis~~uncertainties, ofas ~~Financial~~well ~~Condition~~as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and ~~Results~~those ofdiscussed ~~Operations~~in (the section titled “~~MD&A~~Risk Factors”) isunder Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 2, 2026.

intended to promote understanding of the results of operations and financial condition of the Company. This MD&A is provided as a

supplement to, and should be read in conjunction with, our unaudited condensed consolidated financial statements and the

accompanying notes to unaudited condensed financial statements (Part I, Item 1 of this Form 10-Q) as well as the financial and other

information included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and

Exchange Commission on March 2, 2026. This section generally discusses the results of operations for the three months ended

March 31, 2026, compared to March 31, 2025.

As discussed in the section titled “Cautionary Note Regarding Forward-Looking Statements,” the following discussion and

analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never

materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking

statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those

discussed in the section titled “Risk Factors” under Part I, Item 1A in our Annual Report on Form 10-K for the year ended December

31, 2025, filed with the Securities and Exchange Commission on March 2, 2026.

Overview

Core Scientific, Inc. ~~(“we,”~~is ~~“us,”~~a ~~“our,”~~leader ~~the~~in ~~“Company~~designing,” ~~“Core~~building ~~Scientific,”~~and oroperating ~~“Core”)~~large-scale ~~designs,~~purpose-built ~~builds~~data centers for HDC services. We develop and ~~operates~~operate ~~large~~facilities serving AI and HPC related workloads and are a provider of digital infrastructure to our third-~~scale~~party customers. The majority of our revenue is derived from HDC service.

~~purpose~~Our strategic objective is to maximize the value of our large-~~built~~scale data ~~centers~~center ~~that~~infrastructure ~~support~~portfolio ~~high~~by converting power capacity across our facilities into long-~~density~~term ~~colocation~~contracted ~~services~~HDC ~~and~~revenue ~~digital~~streams. ~~asset~~We ~~mining~~believe ~~for~~this ~~both~~strategy enhances the predictability of future cash flows, reduces the relative contribution of bitcoin market volatility to our ~~own~~operating ~~account~~results, and increases the long-term value of our infrastructure platform relative to aits historical use in digital asset mining operations.

~~lesser~~In ~~extent~~2024, ~~third-party~~we ~~customers.~~announced ~~Our~~our ~~data~~first ~~centers~~HDC ~~are~~contract ~~optimized~~with ~~for~~CoreWeave, a provider of HPC services, which was subsequently expanded to approximately 590 MW of leased customer power~~-intensive~~ capacity across five sites. As of June 30, ~~mission-critical~~2026, ~~computing~~approximately ~~workloads~~395 MW has commenced billing. During the six months ended June 30, 2026, certain CoreWeave license agreements were assigned to a special purpose vehicle financing structure while CoreWeave remained a primary obligor under the agreements. See “Strategic Transition to High-Density Colocation Services” below for a more detailed discussion of this arrangement and the associated risks. While our current colocation revenue remains concentrated with a single customer, we believe our available unleased power capacity provides a meaningful opportunity to diversify our customer base over time.

~~focus~~As onof ~~artificial~~June 30, ~~intelligence~~2026, we controlled approximately 2.1 GW of gross utility power capacity, or approximately 1.3 GW of total leasable customer power capacity across 11 data centers in seven U.S. states including Alabama (~~“AI”~~1), ~~and~~Georgia ~~other~~(2), ~~high-performance~~Kentucky ~~computing~~(1), North Carolina (~~“HPC”~~1), ~~applications~~North Dakota (1), Oklahoma (1), and Texas (4). We continue to develop, convert and expand most of our facilities to support AI and HPC workloads while pursuing additional land and power opportunities to expand our data center footprint.

InWe ~~2024,~~expect wecolocation ~~announced~~revenue to increase as additional contracted capacity is commissioned and delivered to our ~~first~~existing ~~high~~customer and as we add new customer relationships over time. We continue to operate a self-~~density~~mining ~~colocation~~fleet ~~contract~~at ~~with~~two ~~CoreWeave,~~facilities ~~Inc~~and provide hosted mining services to one remaining customer. ~~(“CoreWeave)~~Our hosted mining operations are expected to conclude by December 31, a2026, ~~provider~~while ofwe ~~HPC~~continue to wind down our self-mining operations.

~~services,~~2026 ~~which was subsequently expanded to 590 megawatts (“MW”) of leased customer power capacity over the exercise of several~~ Highlights:

~~contractual~~•On ~~options~~July 28, 2026, we announced a strategic commercial relationship with AMD with the potential to support up to 2.5 WeGW ~~believe~~of ~~leveraging~~leasable ~~our~~capacity, ~~existing~~anchored ~~infrastructure~~by ~~for~~a ~~high~~15-~~density~~year ~~colocation~~agreement ~~services~~for ~~will~~approximately ~~provide~~530 ~~more~~MW ~~stable~~across ~~and~~five sites.

~~predictable~~•On ~~revenue~~May ~~streams~~6, 2026, our indirect wholly-owned subsidiary, Core Scientific Finance completed a $3.3 billion offering of 7.75% Senior Secured Notes due 2031 (the "Senior Secured Notes”). The net proceeds were used to fund a debt service reserve account and ~~represents~~to repay in full and terminate our Term Loan Facility. The Senior Secured Notes and related guarantees are secured by first-priority liens, among other things, on substantially ~~less~~all ~~risk~~assets ~~over~~of ~~time~~Core ~~than~~Scientific ~~our~~Finance ~~traditional~~and ~~hosted~~its ~~bitcoin~~subsidiary ~~mining~~guarantors, which own or ~~self-mining~~operate our specified data center development projects. For additional details, see Note 7 — Debt to our condensed consolidated financial statements.

~~operations.~~29

We•Billable ~~are~~customer ~~constructing~~power capacity of 395 MW as of June 30, ~~refurbishing~~2026, ~~reallocating~~against or590 ~~converting~~MW ~~our~~of 11leased ~~facilities~~customer inpower ~~Alabama (1)~~capacity, ~~Georgia~~with ~~(2),~~the ~~Kentucky~~remaining ~~(1),~~195 ~~North~~MW in various stages of construction and commissioning.

~~Carolina~~•On ~~(1)~~May 5, ~~North~~2026, ~~Dakota~~we ~~(1),~~closed ~~Oklahoma~~on ~~(1),~~the acquisition of land and related electrical power in Hunt County, Texas ~~(4)~~for approximately $233 million in cash, which is expected to support ~~artificial~~approximately ~~intelligence~~430 ~~related~~MW ~~workloads~~of gross power capacity, inwith ~~support~~an ofapproved ERCOT interconnection ramp schedule. For additional details, see Note 3 — Asset Acquisition to our condensed consolidated financial statements.

~~existing~~•In ~~colocation~~May ~~customer~~2026, ~~but~~we ~~also~~announced our entry into an agreement and plan of merger to ~~support~~acquire Polaris DS LLC, for approximately $421 million in cash, subject to certain adjustments. The acquisition will add approximately 40 additional acres adjacent to our ~~commitment~~existing data center operating in Muskogee, Oklahoma, and will provide up to ~~meeting~~440 MW of gross utility power capacity. The transaction is expected to close in the ~~growing~~third ~~demand~~quarter ~~for~~of ~~high-density~~2026. ~~colocation~~For additional details, see Note 10 — Commitments and Contingencies to our condensed consolidated financial statements.

~~solutions~~These operational milestones, together with the strategic financing and ~~diversifying~~portfolio ~~our~~developments ~~customer~~outlined ~~base.~~above, ~~This~~drove ~~will~~the befinancial ~~done~~results asfor ~~circumstances~~the ~~allow~~three and, insix amonths ~~manner~~ended June 30, ~~designed~~2026, towhich ~~retain~~are ~~access~~summarized to below.

~~electrical~~Financial ~~power under our control, maximize the value of our digital asset mining equipment to third parties, and fulfill existing~~ Results:

~~obligations~~•Total torevenue ~~suppliers~~for the three and ~~customers.  In~~six ~~addition~~months toended ~~converting~~June ~~our~~30, ~~existing~~2026 ~~portfolio~~was $164.2 million and $279.4 million, werespectively, ~~are~~compared ~~actively~~to ~~pursuing~~$78.6 million and $158.2 million for the ~~acquisition~~three ofand six months ended June 30, 2025.

~~new~~◦Colocation ~~sites,~~revenue ~~including~~was ~~land~~$136.7 million and ~~power~~$214.2 ~~capacity~~million for the three and six months ended June 30, 2026, respectively, compared to ~~expand~~$10.6 ~~our~~million ~~data~~and ~~center~~$19.1 ~~footprint~~million ~~beyond~~for ~~our~~the ~~current~~three ~~facilities~~and six months ended June 30, 2025, respectively. The increase in colocation revenue was driven by incremental billable customer power capacity delivered to our customer.

We◦Digital ~~will~~asset ~~continue~~self-mining revenue was $21.5 million and $51.6 million for the three and six months ended June 30, 2026, respectively, compared to ~~mine~~$62.4 ~~digital~~million ~~assets~~and $129.6 million for the three and ~~manage~~six ~~our~~months ~~self-mining~~ended ~~fleet~~June ~~with~~30, 2025, respectively. The decrease reflected a ~~focus~~reduction onin ~~power~~bitcoin ~~expense~~mined ~~coverage~~of 53% and ~~cash~~49% for the three and six months ended June 30, 2026, respectively, compared to the three and six months ended June 30, 2025, as well as a decline in the average bitcoin price of 27% and 23% for the same periods, respectively.

~~generation~~◦The ~~while~~increase wein ~~convert~~colocation ~~our~~revenue ~~data~~and ~~centers~~corresponding ~~for~~decline ~~alternative~~in ~~high~~self-~~density~~mining ~~colocation~~revenue ~~service~~reflects ~~business~~the ~~opportunities.~~continued Weexecution ~~expect~~of our strategy to reallocate power capacity from digital asset mining to long-term contracted colocation services.

~~increase~~•Net ~~revenue~~loss ~~derived~~for ~~from~~the ~~high-density~~three ~~colocation~~and ~~(“HDC”)~~six ~~services~~months asended ~~capacity~~June ~~gets~~30, ~~delivered~~2026 was $1.2 billion and $1.5 billion, respectively, compared to ~~our~~$936.8 ~~current~~million ~~end~~and ~~customer~~$360.5 asmillion ~~well~~for the three and six months ended June 30, 2025, respectively. Net loss for the three and six months ended June 30, 2026 was primarily driven by the change in fair value of warrants. Net loss for the six months ended June 30, 2026 was also impacted by a $266.5 million impairment charge on mining-related property, plant and equipment recognized during the first quarter of 2026.

as•Adjusted ~~when~~EBITDA wewas ~~sign~~$41.1 million and ~~begin~~$50.0 ~~generating~~million ~~revenue~~for ~~from~~the ~~new~~three ~~colocation~~and ~~customers~~six months ended June 30, 2026, respectively, compared to $28.5 million and $26.7 million for the three and six months ended June 30, 2025, respectively. Adjusted EBITDA is a non-GAAP financial measure. See “Key Business Operating Metrics and Non-GAAP Financial Measures” below for our definition and reconciliation to net loss.

As•Capital ofexpenditures ~~March~~were 31$954.2 million for the six months ended June 30, 2026, weof ~~operated~~which a$180.9 million ~~diversified~~was ~~portfolio~~funded ofby ~~ten~~CoreWeave ~~data~~pursuant ~~centers~~to ~~across~~its ~~seven~~existing ~~U.S.~~colocation ~~states,~~service ~~representing~~agreement with the Company.

~~approximately~~•Cash ~~1.9~~and ~~gigawatts~~cash ~~(“GW”)~~equivalents ofand ~~gross~~digital ~~utility~~assets ~~power~~totaled ~~capacity, or approximately~~ $1.38 GWbillion as of ~~total~~June 30, ~~leasable customer power~~ 2026.

capacity. We continue to be in active discussions with both our existing and future potential utility providers regarding additional

power allocations.

For the three months ended March 31, 2026, total revenue increased to $115.2 million from $79.5 million for the prior period,

primarily due to higher colocation revenue from incremental billable customer power capacity, partially offset by lower digital asset

self-mining revenue driven by reduced bitcoin production and lower average bitcoin prices. Operating loss was $310.4 million for the

three months ended March 31, 2026, compared to $47.0 million in the prior period, primarily driven by $266.5 million of non-cash

impairment charges on mining-related property, plant and equipment. Net loss was $347.2 million during the three months ended

March 31, 2026, compared to net income of $576.3 million in the prior period, and included significant non-cash items, including

changes of $30.8 million in the fair value of warrants and contingent value rights. Adjusted EBITDA increased to $4.4 million from

$(6.1) million in the prior period. Adjusted EBITDA is a non-GAAP financial measure. See “Key Business Operating Metrics and

Non-GAAP Financial Measures” below for our definition of, and additional information related to Adjusted EBITDA.

Recent Developments

~~Term~~On ~~Loan~~July ~~Facility~~27, 2026, the Company entered into Lease Agreements (collectively, the “AMD Leases”) with Advanced Micro Devices, Inc. (“AMD”) for an aggregate of 377 MW of critical IT capacity at the Company’s Pecos, TX; Muskogee, OK; and Hunt County, TX sites; and Lease Agreements (the “Neocloud Leases,” and collectively with the AMD Leases, the “Leases”) with a Neocloud (“Neocloud”), for 152 MW of critical IT capacity at the Company’s Auburn, AL and Dalton Phase 3, GA sites. Each of the Leases is for a fifteen year term with three five-year options. The AMD Leases provide AMD a reservation of capacity right to lease from the Company at certain times and under certain circumstances an additional 1,925 MWs of critical IT capacity through December 28, 2028.

~~On March 4, 2026, we entered into a loan facility Credit Agreement (the “Credit Agreement”), by and among us, as borrower,~~ 30

In connection with the ~~lenders~~Neocloud ~~party~~Leases, ~~thereto~~each ~~from~~of ~~time~~the Company, Neocloud and AMD has entered into a Credit Support Agreement with respect to ~~time~~each Neocloud Lease: (i) establishing protections for AMD equipment held within the ~~“Lenders”~~applicable Neocloud Lease premises, (ii) ~~and~~providing ~~Morgan~~AMD ~~Stanley~~the ~~Senior~~right, ~~Funding~~but not the obligation, ~~Inc.~~to cure certain defaults of Neocloud under the applicable Neocloud Lease, and (~~“MSSF”~~iii) establishing AMD’s rights and obligations in the event of certain material defaults by a Neocloud with respect to the applicable Neocloud Lease. Each Credit Support Agreement will terminate automatically upon earliest to occur of the expiration of the applicable Neocloud Lease, asspecified ~~administrative~~circumstances relating to the insolvency or default of Neocloud, and 15 years from the effective date of the applicable Neocloud Lease. In addition, AMD may terminate the applicable Credit Support Agreement upon the Company’s breach of a material representation, subject to a specified cure period.

~~agent~~In ~~and~~addition, ~~collateral~~the ~~agent.~~Company ~~The~~issued ~~Credit~~to ~~Agreement~~AMD ~~provides~~a ~~for~~warrant a(the ~~senior~~“Warrant”) ~~secured~~to ~~loan~~purchase ~~facility~~up to 30 million shares (the “~~Term~~Warrant ~~Loan~~Shares”) ~~Facility~~of the Company’s common stock, par value $0.00001 per share (“Common Stock”) inat an ~~aggregate~~exercise price of $23.47 per share, which represents the volume-weighted average price of the Company’s Common Stock on the Nasdaq Global Select Market for the five trading days prior to execution of the Leases.

~~principal~~The ~~amount~~Warrant is exercisable immediately, subject to satisfaction of ~~$500.0~~the ~~million~~vesting conditions therein, and will terminate on July 27, 2031. The ~~Credit~~Warrant ~~Agreement~~Shares ~~also~~will ~~provides~~vest ~~for~~at ana ~~accordion~~rate ~~feature~~of ~~that~~12,222 ~~allowed~~shares usper toeach ~~request~~one megawatt (“MW”) of critical IT load contemplated by the Leases. As a result of the Leases executed on July 27, 2026, an aggregate of approximately 6.5 million Warrant Shares vested and became exercisable.

~~increase~~The inWarrant ~~commitments~~was ~~under~~issued, and the ~~Credit~~Warrant ~~Agreement~~Shares byare upexpected to anbe ~~additional~~issued, ~~$500.0~~in ~~million.~~reliance ~~Subject~~on the exemption from registration pursuant to Section ~~certain~~4(a)(2) ~~customary~~of ~~conditions~~the Securities Act of 1933, as amended (the “Securities Act”).

we may borrow funds available under the Term Loan Facility, in up to ten separate advances, during the period commencing on May

4, 2026 and ending on the date that is one business day prior to the Maturity Date (as defined below). We borrowed the full $500.0

million initially available under the Credit Agreement on March 5, 2026.

On March 18, 2026, we entered into an Amendment No. 1 to the Credit Agreement (the “Incremental Amendment”) with

MSSF and JPMorgan Chase Bank, N.A. (“JPM”), as Amendment No. 1 Term Lender, which amends the Credit Agreement to increase

the term loan commitments thereunder by $500.0 million, to $1.0 billion total, pursuant to the accordion feature. We borrowed the full

$500.0 million incremental commitment on March 18, 2026.

The Term Loan Facility will mature, and all obligations thereunder will become due and payable, on March 3, 2027 (the

“Maturity Date”). Loans under the Term Loan Facility bear interest at a rate equal to term SOFR (subject to a 0% floor), plus an

applicable margin of 2.50% per annum.

Our obligations under the Credit Agreement are guaranteed by certain of our direct or indirect, wholly owned material domestic

subsidiaries and are secured by a first-priority lien on substantially all our and the guarantors assets.

In connection with the offering of $3.3 billion aggregate principal amount of 7.75% senior secured notes due 2031 by our

indirect wholly-owned subsidiary, Core Scientific Finance I LLC, as described below, we used a portion of the proceeds from such

offering that was distributed to us to repay in full the outstanding borrowings under the Term Loan Facility, including accrued interest

thereon and fees and expenses in connection therewith, and upon such repayment, we terminated the Term Loan Facility.

Senior Secured Notes Offering

On April 22, 2026, our indirect wholly-owned subsidiary, Core Scientific Finance I LLC ("Core Scientific Finance"), priced a

private offering of $3.30 billion aggregate principal amount of 7.75% senior secured notes due 2031 at an issue price of 99.25% of the

principal amount. Core Scientific Finance used the net proceeds from the offering to fund a debt service reserve account, and the

remaining proceeds to make a distribution to us, a portion of which we used to repay in full the outstanding borrowings under the

Term Loan Facility, including accrued interest thereon and fees and expenses in connection therewith. The Offering closed on May 6,

2026.

The Notes are guaranteed by each of Core Scientific Austin LLC, Core Scientific Denton LLC, Core Scientific Dalton LLC,

Core Scientific Marble LLC and Core Scientific Muskogee LLC, which collectively represent Core Scientific Finance's only

subsidiaries (the "Subsidiary Guarantors").

In connection with the Offering, we have commenced a series of restructuring transactions intended to transfer or grant all

assets and rights reasonably necessary for the development and operation of specified data center facilities to Core Scientific Finance

and the Subsidiary Guarantors.

The Notes and related guarantees are secured by first-priority liens on (i) substantially all assets of Core Scientific Finance and

the Subsidiary Guarantors, other than certain excluded property, (ii) all equity interests of Core Scientific Finance held by the direct

parent of Core Scientific Finance, Core Scientific Finance Holding LLC ("Holdco"), and (iii) certain of our assets and rights to be

transferred or granted, as applicable, to Core Scientific Finance and the Subsidiary Guarantors pursuant to the restructuring described

above that have not yet been transferred or granted as of the date hereof.

In addition, in connection with the issuance of the Secured Notes, we provide a customary, uncapped completion guarantee for

the benefit of the holders of the Notes with respect to the completion of the data center development projects. The completion

guarantee will require that we provide Core Scientific Finance with funds necessary to ensure the completion of such projects in the

event that the proceeds of the offering of Secured Notes and other available funds are insufficient to do so.

CoreWeave Special Purpose Vehicle

The Company received notice from its counterparty, CoreWeave, Inc., of its intention to enter into assignment and assumption

agreements for our Dalton 1 and Denton North Colocation License Agreements and Orders, as amended, ("License Agreements") with

a special purpose vehicle that is an indirect subsidiary of CoreWeave, Inc. ("CW SPV"). We understand that CW SPV received certain

commitments from a customer sufficient for the debt issued by CW SPV to obtain an investment grade rating. While CoreWeave

remains a primary obligor under the terms of the License Agreements, as a result of the assignment and assumption agreements, CW

SPV is now the Licensee under the License Agreements.

Key Factors Affecting Our Financial Performance

Our results of operations, liquidity and cash flows are affected by a number of factors, including (i) our ability to execute and scale our HDC business, retain our existing colocation customer and attract new colocation customers, (ii) our ability to complete construction of contracted data center capacity on schedule and within budget, (iii) customer concentration and the financial health of our primary colocation customer, (iv) bitcoin market conditions and network fundamentals that continue to affect our Digital Asset Self‑Mining segment during our transition period, (v) power costs and availability across our portfolio, (vi) broader macroeconomic, regulatory and tariff developments, and (vii) our ability to service our debt obligations and fund our capital requirements. The factors below highlight key drivers that have affected, and may continue to affect, our financial performance.

strategic transition toward high‑density colocation services, (ii) bitcoin market conditions and network fundamentals that drive

self‑mining economics, (iii) broader macroeconomic and regulatory developments, (iv) power prices and curtailment activity, and (v)

the competitive landscape for our industry. The factors below highlight key drivers that have affected, and may continue to affect, our

financial performance.

Our financial performance depends in part on our ability to operate our self‑mining fleet profitably and, as we transition our

business, to execute and expand our colocation operations and attract and retain colocation customers. Increases in power costs,

inability to mine digital assets efficiently and to sell digital assets at favorable prices will reduce our operating margins and could have

a material near-term adverse effect on our business, financial condition and results of operations. In addition, sustained declines in

bitcoin prices or adverse changes in network conditions could reduce cash generated from self‑mining during periods where

self‑mining remains a significant contributor to our results.

Strategic Transition to High-Density Colocation Services

AsHigh-density wecolocation ~~grow~~is now our ~~Colocation~~primary ~~operations~~business. ~~over~~For the ~~next~~six ~~several~~months ~~years~~ended byJune ~~converting~~30, 2026, colocation revenue represented 77% of total revenue, compared to 12% for the ~~remaining~~six months ended June 30, 2025, reflecting the rapid scaling of billable customer power capacity under our agreement with CoreWeave. We expect colocation to represent an increasingly dominant share of our results as additional capacity is commissioned and delivered, gradually reducing our exposure to bitcoin spot price volatility and the operational risks associated with digital asset mining. ~~sites~~During the transition period, our consolidated results reflect both the ramp up of colocation revenue and ~~adding~~the planned decline of our mining operations, and we expect this dynamic to continue as additional contracted capacity is placed in service.

~~new~~The ~~infrastructure~~Colocation segment is characterized by the implementation of long-term contracts spanning 10 or more years with payment structures that provide terms and ~~customers~~conditions resulting in stable, predictable revenue and cash flows over each contract period. As of June 30, 2026, we ~~expect~~had ~~Colocation~~contracted 590 MW of leased customer power capacity and were actively billing for 395 MW. The gap between leased and billable capacity represents our primary near-term revenue growth opportunity. The pace at which we convert leased capacity to ~~represent~~billable capacity depends on a ~~larger~~number ~~share~~of factors, including equipment lead times and availability, labor constraints, permitting and interconnection sequencing, supply chain and logistical challenges, and the pace of ~~our~~customer ~~results~~deployment under existing contracts. Changes in these inputs can affect when incremental capacity becomes billable and ~~gradually~~therefore ~~reduce~~may ~~our~~affect ~~exposure~~the totiming of colocation revenue, cost of services and related cash flows.

~~bitcoin~~In ~~spot~~addition ~~price~~to ~~volatility~~converting our existing facilities we are also developing new data center sites, including our recently acquired Hunt County, Texas campus. ~~The~~Both ~~Colocation~~conversion ~~segment~~and isnew ~~characterized~~site bydevelopment ~~the~~carry ~~implementation~~meaningful ofexecution ~~long-term~~risks, ~~contracts~~including construction cost variability, equipment lead times, permitting uncertainty, and technical requirements associated with ~~customers~~high-density colocation workloads.

~~spanning~~Our ~~10+~~colocation ~~years~~revenue ~~with~~is ~~terms~~currently ~~and~~derived ~~conditions~~entirely ~~resulting~~from ina ~~stable~~single customer, ~~predictable~~CoreWeave, a provider of HPC services. For the six months ended June 30, 2026, CoreWeave represented approximately 77% of our total revenue. This concentration means that our financial results, liquidity and cash flows ~~over~~are ~~each~~highly ~~period~~dependent on CoreWeave’s continued performance of its obligations under our license agreements, its financial health, and its ongoing demand for our data center capacity.

~~The~~During ~~pace~~the ofperiod, ~~this~~CoreWeave ~~transition,~~entered into assignment and ~~the~~assumption ~~timing~~agreements oftransferring ~~related~~certain ~~revenue~~license ~~and~~agreements ~~cash~~to ~~flows~~CW SPV, ~~depends~~a onspecial ~~(i)~~purpose ~~customer~~vehicle ~~deployment~~that ~~schedules~~is an indirect subsidiary of CoreWeave. CoreWeave remains a primary obligor under those

~~under existing and future contracts and (ii) the timing and cost of converting and commissioning incremental billable customer power~~ 31

~~capacity~~agreements. ~~Conversion~~While ~~capital~~we ~~expenditures~~believe this structure supports the long-term stability of these arrangements, the assignment introduces an additional layer of counterparty structure, and ~~timelines~~our ~~are~~revenue ~~sensitive~~and cash flows remain dependent on performance by entities within the CoreWeave corporate family. Our practical ability to ~~equipment~~enforce ~~lead~~recourse ~~times~~against ~~and~~CoreWeave ~~availability,~~would ~~labor~~depend ~~constraints,~~on its financial condition at the time of any default.

~~permitting~~Any ~~and~~material ~~interconnection~~adverse ~~sequencing~~change in CoreWeave’s business, ~~and~~financial ~~supply~~condition ~~chain~~or ability to perform under our license agreements could have a disproportionate impact on our revenue, results of operations and ~~logistical~~liquidity. ~~challenges~~Our deferred revenue balance as of June 30, 2026 includes significant customer prepayments for capacity not yet delivered. ~~Changes~~To inthe ~~these~~extent ~~inputs~~we ~~can~~are ~~affect~~unable ~~when~~to deliver contracted capacity on schedule, or if our customer relationship was disrupted, our revenue recognition, deferred revenue obligations and capital recovery could be materially affected.

~~incremental~~A ~~capacity~~key ~~becomes~~strategic ~~billable~~priority ~~and~~is ~~therefore~~diversifying ~~may~~our ~~affect~~customer base by signing new colocation customers. Our ability to do so depends on a number of factors, including the availability and timing of ~~colocation~~unleased ~~revenue~~capacity at our facilities, ~~cost~~the ofcompetitive ~~services~~environment for high-power data center capacity, pricing dynamics in the colocation market, and ~~related~~our ~~cash~~ability to demonstrate reliable execution on our existing contract. Until we successfully diversify our customer base, our financial results will remain highly sensitive to the performance of our relationship with CoreWeave.

~~flows.~~Electricity Costs

In our Colocation segment, power costs are passed through to our customer without markup and are recognized as revenue on a gross basis, with a corresponding charge to cost of colocation services. As a result, changes in power prices affect colocation revenue and cost of services in equal measure, with no corresponding impact on colocation gross profit. However, significant changes in power prices can cause large fluctuations in reported colocation revenue and cost of revenue that are not indicative of changes in underlying operating performance. Nonetheless, this pass-through structure provides an important degree of insulation from power price volatility on our largest and fastest growing revenue stream.

In our Digital Asset Self‑Mining and Digital Asset Hosted Mining segments, electricity is the primary operating cost and is not passed through to customers. In these segments, increases in power prices directly compress margins. The cost and availability of electricity are affected by changes in seasonal demand, with peak demand during summer months driving higher costs and increased curtailments to support grid operators. Severe weather events, geopolitical developments, and macroeconomic factors can also affect power costs and availability in ways outside our control. As our colocation business grows and our mining operations wind down, the proportion of our cost base subject to direct power price exposure will decrease.

Beyond cost, the availability of sufficient electrical power is one of the most important constraints on our colocation growth. The timing of utility approvals, interconnection studies, and power delivery agreements can affect when new capacity becomes available and therefore may affect the timing of our capital deployment and revenue ramp. We continue to be in active discussions with both our existing and future potential utility providers regarding additional power allocations across our portfolio, and we believe our ability to secure and maintain these agreements is a key factor affecting our long-term growth and competitive positioning.

Bitcoin Market Conditions

Our Digital Asset Self-Mining segment revenue is ~~heavily~~directly dependent on the spot price of bitcoin. ~~The~~For ~~prices~~the six months ended June 30, 2026, self-mining represented 18% of ~~digital~~total ~~assets~~revenue, down from 82% for the six months ended June 30, 2025, as we have strategically reallocated power capacity from mining to colocation operations.

~~specifically~~Bitcoin ~~bitcoin~~prices continue to affect the performance of our Digital Asset Self-Mining segment, ~~have~~including ~~experienced~~mining ~~substantial~~revenue, ~~volatility~~the value of digital assets held on our balance sheet, ~~meaning~~and ~~that~~the ~~high~~recoverability orof ~~low~~mining-related ~~prices~~assets. ~~may~~During ~~have~~the ~~little~~six ormonths noended ~~relationship~~June 30, 2026, deteriorating mining economics contributed to a $266.5 million impairment charge on mining-related assets. As our transition to colocation progresses, we expect bitcoin market conditions to have a diminishing effect on our overall financial results.

~~identifiable~~We ~~market~~continue ~~forces,~~to ~~may~~manage beour ~~subject~~self-mining tofleet ~~rapidly~~with ~~changing~~a ~~investor~~focus ~~sentiment,~~on generating cash flows and ~~may~~covering power expenses while we execute our colocation transition. We will be ~~influenced~~opportunistic byin ~~factors~~monetizing ~~such~~our asbitcoin holdings, subject to market conditions and our treasury strategy.

technology, regulatory developments and enforcement actions. Bitcoin (as well as other digital assets) may have value based on

various factors, including their acceptance as a means of exchange by consumers and others, scarcity, and market demand. Changes in

the market price of bitcoin can materially affect (i) revenue recognized from self‑mining, (ii) the fair value of digital assets we hold

and related gains or losses recognized in our results of operations, and (iii) liquidity to the extent we sell bitcoin as part of our treasury

strategy. Bitcoin miners also receive a transaction fee in the form of a portion of bitcoin for validating transactions on the Bitcoin

network. The transaction fee can vary in value over time, with higher fees prioritizing certain transactions over those with lower fees.

An increase in Bitcoin network transaction fees increases mining proceeds.

Higher power costs, lower realized bitcoin prices, or reduced mining efficiency would reduce self-mining margins and cash

generation during periods when self-mining remains a significant contributor to our results. As we transition, the timing of colocation

conversions and customer deployments, and our ability to execute and scale colocation operations and retain colocation customers,

will increasingly influence our revenue mix and profitability.

Bitcoin Network Fundamentals

Our ~~business~~self-mining isresults ~~not~~are ~~only~~also ~~impacted~~affected by competitive dynamics of the ~~volatility~~Bitcoin innetwork, ~~digital~~including ~~asset~~the ~~prices~~network hash rate and ~~transaction~~difficulty ~~fees,~~in ~~but~~solving ~~also~~blocks. byIncreases ~~increases~~in network hash rate result in higher network difficulty over time, which reduces the amount of bitcoin earned for a given level of deployed hash rate and power consumption. These dynamics are entirely outside of our control.

~~competition~~As ~~for~~we ~~digital~~wind ~~asset~~down ~~production.~~our ~~For~~mining ~~bitcoin,~~operations ~~this~~and ~~increased~~reallocate ~~competition~~capacity isto ~~described~~colocation, asnetwork ~~the~~difficulty ~~network~~affects ~~hash~~the rate ~~resulting~~at which we are able to generate value from our remaining mining fleet during the transition period. We are not investing in new mining equipment to

~~growth in the overall quantity and quality of miners working to solve blocks on the bitcoin blockchain, and the difficulty index~~ 32

~~associated~~maintain ~~with~~or ~~the~~expand ~~secure~~our ~~hashing~~mining ~~algorithm~~hash ~~employed~~rate. inRather, ~~solving~~our focus is on maximizing the ~~blocks~~cash generation from our existing fleet while we convert facilities and, where appropriate, selling or otherwise monetizing mining equipment as we retire it from service. ~~Increases~~To inthe extent network ~~hash~~difficulty ~~rate~~increases ~~generally~~materially ~~increase~~or bitcoin transaction fees decline, the revenue and cash generation from our remaining fleet during the transition period will be reduced.

network difficulty over time, which can reduce the amount of bitcoin earned for a given level of deployed hash rate and power

consumption.

Increased difficulty reduces the mining proceeds of the equipment proportionally and eventually requires bitcoin miners to

upgrade their mining equipment to remain profitable and compete effectively with other miners. Difficulty and network conditions are

outside of our control and can materially affect our self‑mining revenue and margins.

Tariffs

Beginning on February 1, 2025, the United States government announced a series of additional tariffs on goods imported to the United States, raising concerns about price inflation and delivery delays with respect to equipment and materials used in our data center conversions and our digital asset mining business. During the three and six months ended June 30, 2026, tariffs contributed to higher costs for certain equipment and materials procured directly by the Company for non-customer-funded projects.

~~United~~Our ~~States,~~agreement ~~raising~~with ~~concerns~~CoreWeave ~~about~~is ~~material~~funded ~~price~~almost ~~inflation~~entirely by the customer, and ~~delivery~~our ~~delays~~financial contribution to those projects is capped at a fixed dollar amount, limiting our exposure to tariff-related cost increases on customer-funded capital expenditures. However, capital expenditures associated with ~~respect~~developing new data center sites, including our Hunt County, Texas campus and the Muskogee, Oklahoma site we have agreed to acquire, are not subject to the same customer-funding structure as our existing CoreWeave conversion projects. To the extent these sites require significant equipment and material procurement funded directly by the Company, our exposure to tariff-related cost increases on those projects may be greater than on our existing customer-funded portfolio. Sustained or further increases in tariffs on key equipment and materials ~~needed~~could ~~for~~affect construction costs, timelines, and operating economics at these sites, which could affect the timing and profitability of our colocation expansion.

~~our~~We ~~high-density~~continue ~~colocation~~to ~~data~~analyze ~~center~~the ~~conversions~~impact of tariffs on our business and ~~also~~the ~~with~~actions ~~respect~~we can take to ~~parts,~~minimize ~~machinery~~current and ~~hardware~~future exposure. Certain equipment and material used in our ~~digital~~data ~~asset~~center development have lead times in excess of 12 months. To the extent we are able to place orders in advance of potential tariff increases, our exposure to future cost escalation on those items may be reduced.

~~mining~~Debt ~~business.~~Service ~~During the three months ended March 31, 2026, tariffs contributed to higher costs for certain equipment~~ and Capital Requirements

~~materials~~Our ~~procured~~capital ~~directly~~structure has changed materially during 2026. As of June 30, 2026, our consolidated indebtedness includes $460.0 million of 3.00% Convertible Senior Notes due 2029 (the “2029 Convertible Notes”), $625.0 million of 0.00% Convertible Senior Notes due 2031 (the “2031 Convertible Notes”), and $3.30 billion of 7.75% Senior Secured Notes due 2031 issued by our indirect subsidiary Core Scientific Finance. The Senior Secured Notes require semi-annual interest payments on May 15 and November 15 of each year, beginning November 15, 2026, and semi-annual principal amortization at an initial annual rate of 11.50% of the ~~Company~~original ~~for~~principal ~~non~~amount outstanding on the issue date until the notes are repaid, repurchased, redeemed or otherwise discharged, beginning on the First Installment Payment Date. The First Installment Payment Date is defined as the first semi-~~customer~~annual payment date occurring at least 15 days after both rent commencement under the related data center leases and the abatement of all revenue credits provided to the tenant. Revenue credits refer to fixed amounts credited against the tenant’s payment obligation during the initial ramp-~~funded~~up ~~projects~~period under the license agreements. ~~Our~~As ~~agreement~~a ~~with~~result, ~~our~~the ~~HDC~~timing ~~customer~~of principal amortization is ~~funded~~directly linked to our operational delivery milestones under our colocation arrangements.

~~almost~~Our ~~entirely~~construction bycapital ~~the~~requirements are also substantial. As of June 30, 2026, we were contractually committed to approximately $1.0 billion of future cash expenditures, of which approximately $264 million will be passed through to our customer as invoiced, ~~and~~with substantially all remaining expenditures expected to occur within the next 12 months. The interaction between our ~~financial~~debt ~~contribution~~service isobligations, ~~capped~~construction atcapital acommitments, ~~fixed~~customer ~~dollar~~prepayment ~~amount~~inflows, ~~limiting~~and operating cash flows is a key factor affecting our ~~exposure~~liquidity toand ~~tariff-~~capital allocation decisions. See "Liquidity and Capital Resources" below for further discussion.

~~related~~Our ~~cost increases on customer-funded capital expenditures.~~ Competition

WeIn ~~could~~our ~~experience~~Colocation ~~additional~~segment, ~~impacts~~we ~~from~~compete ~~tariffs~~for oncustomers ~~our~~and ~~results~~capacity with major data center real estate investment trusts, developers of ~~operations~~purpose-built data centers and other operators with high-power capacity suitable for AI and HPC workloads. Competition in ~~future~~this ~~periods~~market focuses primarily on facility location, timing, power capacity availability and scale, reliability and uptime, reputation, technical specifications including power density and cooling capabilities, pricing and contract terms, speed of delivery, and track record of execution. WeOur ~~continue~~ability to ~~analyze~~attract ~~the~~new colocation customers and diversify beyond our current single-customer concentration depends on our ability to compete effectively across these dimensions.

~~additional~~The ~~impact~~market offor ~~these~~HDC ~~tariffs~~capacity onserving ~~our~~AI ~~business~~workloads has grown rapidly, and ~~actions~~competition wefor both customers and new sites has intensified. Competition for new power capacity and land sites is particularly acute, as utilities and grid operators have limited interconnection capacity in many markets and the lead times for securing new power agreements can ~~take~~be significant. Our ability to ~~minimize~~secure ~~any~~attractive ~~current~~new sites and ~~future~~power ~~impact.~~agreements ~~Sustained~~before orcompetitors do is an important factor affecting our long-term growth.

~~further increases in tariffs on key equipment and materials could affect conversion economics, timelines and/or operating costs, which~~ 33

~~could~~In ~~affect~~our ~~the~~Digital ~~timing~~Asset Self-Mining segment, competition is driven by access to low-cost power, mining fleet efficiency, scale, and ~~profitability~~capital ofavailability. As we wind down our ~~colocation~~mining ~~expansion~~operations, our ability to compete effectively as a miner becomes a declining factor in our overall financial performance. We will continue to manage our existing fleet with a focus on cash generation rather than competitive positioning, and we do not intend to make material new investments in mining capacity.

Electricity Costs

Electricity cost is the major operating cost for our mining fleet, as well as for the hosted mining services provided to customers.

The cost and availability of electricity are affected primarily by changes in seasonal demand, with peak demand during the summer

months driving higher costs and increased curtailments to support grid operators. Severe winter weather can increase the cost of

electricity and the frequency of curtailments when it results in damage to power transmission infrastructure that reduces the grid’s

ability to deliver power. Geopolitical and macroeconomic factors, such as overseas military or economic conflict between states, can

adversely affect electricity costs by raising the cost of power generation inputs such as natural gas. Other events out of our control can

also impact electricity costs and availability. In our self‑mining and hosted mining operations, increases in power prices and/or

increased curtailments can materially reduce margins and cash generation. In our colocation operations, power costs are passed

through to customers and changes in power prices may increase revenue and cost of colocation services without a corresponding

change in gross profit.

Our Competition and Customers

In addition to factors underlying our mining business growth and profitability, the success of our Colocation business greatly

depends on our ability to retain and develop opportunities with our existing customers, secure additional infrastructure and attract new

customers.

Competition in digital asset mining is driven in part by access to low‑cost power, scale, fleet efficiency and capital availability,

and can contribute to increases in network hash rate and difficulty. We face significant competition in every aspect of our business,

including, but not limited to, the acquisition of new miners, the ability to raise capital, obtaining low-cost electricity, obtaining access

to sites with reliable sources of high power, and evaluating new technology developments in the industry.

Based on available data, we believe that an increase in the scale and sophistication of competition in the digital asset mining

industry has continued to increase network hash rate, with new entrants and existing competitors increasing the number of miners

mining for bitcoin.

Despite this trend, our ability to compete in self‑mining will depend on managing fleet efficiency, power costs and capital

allocation as we shift resources toward colocation.

In our Colocation operations, we compete with other providers of high-power data center capacity, such as major data center

real estate investment trusts, developers of data centers, hyperscalers and bitcoin miners with capacity suitable for high-density

colocation services. This competition focuses primarily on the identification and acquisition of new, high-power sites, but also

includes competition for the capital required to build or modify existing sites to support high-density colocation.

Competition in colocation may affect pricing, contract terms, and the pace at which we can secure additional power and sites

and therefore may affect revenue growth and required capital expenditures.

Regulation

We operate in a dynamic regulatory environment. For a discussion of federal, state, and international regulatory developments affecting our digital asset mining and colocation activities, see “Government Regulation” in Part I, Item 1 “Business” section in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 2, 2026. We continue to evaluate whether regulatory developments present known trends or uncertainties that may materially impact our operations, energy costs, or customer demand.

Regulatory developments affecting data centers, energy markets, AI infrastructure, and environmental matters could affect compliance costs, power availability and pricing, permitting timelines, and customer demand, each of which could impact our ~~digital~~results ~~asset~~of ~~mining~~operations and ~~colocation~~liquidity. ~~activities~~In particular, ~~see~~regulatory ~~“Government~~requirements ~~Regulation”~~governing indata ~~Part~~center Iconstruction, ~~Item~~environmental 1impact, ~~“Business”~~and ~~section~~utility ininterconnection could affect the timeline and cost of developing our new sites, and our ability to complete our contracted data center development projects on schedule. We continue to monitor these developments closely and incorporate regulatory considerations into our site selection, development planning, and capital allocation decisions.

Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on March 2,

2026. We continue to evaluate whether any such developments present known trends or uncertainties that may materially impact our

operations, energy costs, or customer demand. Regulatory developments affecting digital assets, data centers, energy markets and

environmental matters could affect compliance costs, power availability and pricing, and customer demand, which could impact our

results of operations and liquidity.

Key Business Operating Metrics and Non-GAAP Financial Measures

In addition to our financial results, we use the following business operating metrics and non-GAAP financial measures to evaluate our business, measure our performance, identify trends affecting our business, and make strategic decisions. These operating metrics and non‑GAAP financial measures should be considered in addition to, and not as a substitute for, our consolidated financial statements prepared in accordance with GAAP.

Management also uses the following data center capacity and power metrics (measured in megawatts) to evaluate the scale of our ~~business~~utility power footprint and customer IT load capacity, ~~measure~~monitor ~~our~~customer ~~performance~~commitments and remaining available capacity, ~~identify~~assess ~~trends~~commissioning ~~affecting~~progress ~~our~~and ~~business~~deployment pacing, and ~~make~~inform ~~strategic~~capital allocation and site planning decisions. ~~These~~Unless ~~operating~~otherwise indicated, these metrics are presented as of period end and represent management estimates based on operational and engineering data and may not be comparable to similarly titled measures used by other operators.

~~metrics~~Metric (MW) Definition How management uses it Gross Utility Power Capacity Total electric utility power capacity agreements associated with our data center sites under our control as of period end, including capacity that is commissioned for future use. Used for portfolio planning and utility power allocation discussions. Total Leasable Customer Power Capacity Our estimate of the total non~~‑GAAP~~-redundant ~~financial~~customer ~~measures~~IT ~~should~~load bethat ~~considered~~our data center sites could support in ~~addition~~the aggregate as of period end, regardless of whether such capacity has been contracted with customers or remains available for sale. This metric is representative of the amount of power available for customer use in servicing their workloads. Used to assess total customer‑usable IT load available for leasing, evaluate leased versus unleased capacity, and plan conversion/development sequencing and sales capacity. Leased Customer Power Capacity Power capacity that is committed to customers under executed customer contracts, regardless of whether service has commenced as of period end. Used to monitor signed customer commitments and contracted backlog and to plan future deployment/commissioning requirements. Unleased Customer Power Capacity The portion of Total Leasable Customer Power Capacity not committed under customer contracts as aof ~~substitute~~period end. This metric is calculated as Total Leasable Customer Power Capacity minus Leased Customer Power Capacity. Used to monitor remaining uncommitted customer IT load and to prioritize incremental contracting and conversion/commissioning plans. Billable Customer Power Capacity Portion of Leased Customer Power Capacity for, ~~our~~which ~~consolidated~~service ~~financial~~has commenced and we are actively billing as of period end. Used to monitor in-service customer power that is billing and to track deployment/commissioning pace and near-term revenue ramp.

~~statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”).~~34

~~Management~~Billable ~~also~~Customer ~~uses~~Power Capacity is the ~~following~~primary ~~data~~driver ~~center~~of our Colocation segment revenue in each period, as revenue recognition commences when capacity is delivered and ~~power~~service ~~metrics~~begins. ~~(measured~~The ingap ~~megawatts)~~between Leased Customer Power Capacity and Billable Customer Power Capacity represents contracted capacity for which we are constructing and commissioning infrastructure, and reflects our near-term revenue growth opportunity as that capacity is placed into service. Gross Utility Power Capacity and Total Leasable Customer Power Capacity are used primarily for portfolio planning and to evaluate ~~the~~our ~~scale~~available ofcapacity for future customer contracting.

~~our~~The ~~utility~~following ~~power~~table ~~footprint~~presents ~~and~~the ~~customer~~values ITfor ~~load~~these ~~capacity,~~metrics ~~monitor~~as ~~customer~~of ~~commitments~~the ~~and~~dates ~~remaining~~indicated ~~available~~(in ~~capacity, assess~~ megawatts):

commissioning progress and deployment pacing, and inform capital allocation and site planning decisions. Unless otherwise indicated,


	June 30, 2026	March 31, 2026	December 31, 2025
Gross Utility Power Capacity	2,115	1,860	1,426
Total Leasable Customer Power Capacity	1,275	1,275	920
Leased Customer Power Capacity	590	590	590
Unleased Customer Power Capacity	685	685	330
Billable Customer Power Capacity	395	225	120

these metrics are presented as of period end and represent management estimates based on operational and engineering data and may

not be comparable to similarly titled measures used by other operators.

Metric (MW) Definition How management uses it Gross Utility Power Capacity Total electric utility power capacity agreements associated with our data center sites under our control as of period end, including capacity that is commissioned for future use. Used for portfolio planning and utility power allocation discussions. Total Leasable Customer Power Capacity Our estimate of the total non-redundant customer IT load that our data center sites could support in the aggregate as of period end, regardless of whether such capacity has been contracted with customers or remains available for sale. This metric is representative of the amount of power available for customer use in servicing their workloads. Used to assess total customer‑usable IT load available for leasing, evaluate leased versus unleased capacity, and plan conversion/development sequencing and sales capacity. Leased Customer Power Capacity Power capacity that is committed to customers under executed customer contracts, regardless of whether service has commenced as of period end. Used to monitor signed customer commitments and contracted backlog and to plan future deployment/commissioning requirements. Unleased Customer Power Capacity The portion of Total Leasable Customer Power not committed under customer contracts as of period end. This metric is calculated as Total Leasable Customer Power minus Leased Customer Power Capacity. Used to monitor remaining uncommitted customer IT load and to prioritize incremental contracting and conversion/commissioning plans. Billable Customer Power Capacity Portion of Leased Customer Power Capacity for which service has commenced and we are actively billing as of period end. Used to monitor in-service customer power that is billing and to track deployment/commissioning pace and near-term revenue ramp.

The following table presents the values for these metrics as of March 31, 2026 and December 31, 2025 (in megawatts).

	March 31, 2026	December 31, 2025
Gross Utility Power Capacity	1,860	1,426
Total Leasable Customer Power Capacity	1,275	920
Leased Customer Power Capacity	590	590
Unleased Customer Power Capacity	685	330
Billable Customer Power Capacity	225	120

Adjusted EBITDA

We report our financial results in accordance with GAAP. To supplement our consolidated financial statements, we provide investors with Adjusted EBITDA, a non‑GAAP financial measure. Adjusted EBITDA is defined as our net loss, adjusted to eliminate the effect of (i) interest expense (income), net; (ii) provision for income taxes; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) loss on disposal and impairment of property, plant and equipment; (vi) loss on remeasurement of assets held for sale; (vii) loss on contract termination; (viii) colocation organizational startup costs primarily related to the initial ramp up of new colocation sits and the conversion of existing facilities to colocation data center operations; (ix) loss on debt extinguishment; (x) change in fair value of warrant and contingent value rights; (xi) loss on legal settlements; (xii) post-emergence bankruptcy advisory costs incurred related to reorganization and (xiii) certain additional non-cash items that do not reflect the performance of our ongoing business operations. The most directly comparable GAAP measure to Adjusted EBITDA is net loss.

~~investors~~We ~~with~~believe Adjusted EBITDA is useful to management, ~~which~~investors, isand aour Board of Directors because it removes the effect of items that are either non~~‑GAAP~~-cash ~~financial~~in ~~measure~~nature, not reflective of our core operating performance, or subject to timing and variability that makes period-to-period comparisons less meaningful. This includes impairment charges on mining-related assets, which are non-cash and reflect changes in bitcoin market conditions rather than the operating performance of our colocation business. Adjusted EBITDA is ~~defined~~used asby management internally to make operating decisions, evaluate performance, and perform strategic and financial planning, including assessment of return on capital and operating efficiencies. In addition, we believe it provides useful information to investors in understanding and evaluating our ~~net~~results ~~(loss)~~of ~~income~~operations and making period-to-period comparisons of our business, as it removes the effect of interest, taxes, non-cash charges, and other items subject to timing variability.

~~adjusted~~You should be aware that when evaluating Adjusted EBITDA, we may incur future expenses similar to ~~eliminate~~those ~~the~~when ~~effect~~calculating this measure. Our presentation of ~~(i) interest~~this ~~income~~measure should not be construed as an inference that its future results will be unaffected by unusual items. This measure should be considered in addition to, ~~interest~~and ~~expense~~not as a substitute for, our condensed consolidated financial statements prepared in accordance with GAAP. We compensate for these limitations by relying primarily on GAAP results and using Adjusted EBITDA on a supplemental basis. Our computation of Adjusted EBITDA may not be comparable to similarly titled measures used by other ~~income~~companies ~~(expense),~~because not all companies calculate this measure in the same fashion. You should review the reconciliation of net; ~~(ii) provision~~loss ~~for~~to ~~income~~Adjusted EBITDA below and not rely on any single financial measure to evaluate our business.

~~taxes; (iii) depreciation and amortization; (iv) stock-based compensation expense; (v) loss on disposal and impairment of property,~~ 35

~~plant~~The ~~and~~following ~~equipment;~~table ~~(vi)~~presents ~~site~~a ~~demolition~~reconciliation ~~costs~~of ~~incurred~~net inloss ~~connection~~to ~~with~~Adjusted ~~the~~EBITDA ~~conversion~~for ofthe ~~existing~~periods ~~facilities~~indicated to(in ~~colocation data~~ thousands):

center operations; (vii) change in fair value of warrant and contingent value rights; (viii) loss on legal settlements; (ix) post-emergence


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Net loss	$	(1,155,310)	$	(936,799)	$	(1,502,498)	$	(360,548)
Adjustments:
Interest expense (income), net	23,833		(1,185)		28,690		(3,372)
Income tax expense	1,907		158		2,507		363
Depreciation and amortization	15,498		18,756		32,146		38,487
Stock-based compensation expense	13,938		19,533		27,475		32,765
Loss on disposal of property, plant and equipment	1,273		4,166		14,911		4,172
Loss on remeasurement of assets held for sale	19,495		—		19,495		—
Impairment of property, plant and equipment	—		—		266,488		—
Colocation organizational and site startup costs(1)	27,039		11,655		35,704		23,322
Loss on contract termination	41,948		—		41,948		—
Loss on debt extinguishment	5,435		1,377		5,435		1,377
Change in fair value of warrants and contingent value rights	1,045,515		909,958		1,076,314		288,494
Loss on legal settlements(2)	—		—		500		—
Post-emergence bankruptcy advisory costs(3)	397		695		714		1,298
Other	135		207		162		364
Adjusted EBITDA	$	41,103	$	28,521	$	49,991	$	26,722

~~bankruptcy~~(1)Included ~~advisory~~in Colocation organizational and site startup costs ~~incurred~~are ~~related~~costs associated to ~~reorganization~~Stock-based compensation expense of $4.3 million and $8.5 million for the three and six months ended June 30, 2026, respectively, and ~~(x)~~$4.6 ~~certain~~million ~~additional non-cash items~~and ~~that~~$7.6 domillion ~~not~~for ~~reflect~~the three and six months ended June 30, 2025, respectively. For the six months ended June 30, 2025, there was also $4.4 million in site conversion demolition costs.

~~performance~~(2)Included ofin ~~our~~Other ~~ongoing~~non-operating ~~business~~expense, ~~operations.~~net ~~The~~on ~~most~~the ~~directly~~condensed ~~comparable~~consolidated ~~GAAP~~statements ~~measure~~of ~~to Adjusted EBITDA is net (loss)~~ operations.

~~income.~~(3)Included ~~For~~in ~~additional information~~Selling, ~~including~~general aand ~~reconciliation~~administrative ofon ~~net~~the ~~(loss)~~condensed ~~income~~consolidated tostatements ~~Adjusted~~of ~~EBITDA, please refer to the table~~ operations.

~~below.~~Results of operations for the three and six months ended June 30, 2026 and 2025

We believe Adjusted EBITDA is an important measure because it allows management, investors, and our Board of Directors to

evaluate and compare our operating results, including our return on capital and operating efficiencies, from period-to-period by

making the adjustments described above. In addition, it provides useful information to investors and others in understanding and

evaluating our results of operations, as well as provides a useful measure for period-to-period comparisons of our business, as it

removes the effect of net interest expense, taxes, certain non-cash items, variable charges and timing differences. Moreover, we have

included Adjusted EBITDA in this Quarterly Report on Form 10-Q because it is a key measurement used by our management

internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic and

financial planning.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature or because the

amount and timing of these items are not related to the current results of our core business operations which renders evaluation of our

current performance, comparisons of performance between periods and comparisons of our current performance with our competitors

less meaningful. However, you should be aware that when evaluating Adjusted EBITDA, we may incur future expenses similar to

those excluded when calculating this measure. Our presentation of this measure should not be construed as an inference that its future

results will be unaffected by unusual items. Further, this non-GAAP financial measure should not be considered in isolation from, or

as a substitute for, financial information prepared in accordance with GAAP. We compensate for these limitations by relying primarily

on GAAP results and using Adjusted EBITDA on a supplemental basis. Our computation of Adjusted EBITDA may not be

comparable to other similarly titled measures computed by other companies because not all companies calculate this measure in the

same fashion. You should review the reconciliation of net (loss) income to Adjusted EBITDA below and not rely on any single

financial measure to evaluate our business.

The following table presents a reconciliation of net (loss) income to Adjusted EBITDA for the three months ended March 31,

2026 and 2025 (in thousands):

	Three Months Ended March 31,
	2026	2025
Adjusted EBITDA
Net (loss) income	$(347,188)	$576,251
Adjustments:
Interest expense (income), net	4,857	(2,187)
Income tax expense	600	205
Depreciation and amortization	16,553	19,731
Stock-based compensation expense	17,761	16,185
Loss on disposal of property, plant and equipment	13,638	6
Impairment of property, plant and equipment	266,488	—
Site conversion demolition costs	—	4,442
Change in fair value of warrants and contingent value rights	30,799	(621,464)
Loss on legal settlements	500	—
Post-emergence bankruptcy advisory costs	317	603
Other	27	157
Adjusted EBITDA	$4,352	$(6,071)

Results of Operations for the Three Months Ended March 31, 2026 and 2025

The following table sets forth our selected condensed consolidated statements of operations for each of the periods indicated (in

thousands).

	Three Months Ended March 31,
	2026	2025	$ Change
Revenue:
Colocation revenue	$77,539	$8,573	$68,966
Digital asset self-mining revenue	30,105	67,179	(37,074)
Digital asset hosted mining revenue from customers	7,600	3,773	3,827
Total revenue	115,244	79,525	35,719
Cost of revenue:
Cost of colocation services	33,618	8,106	25,512
Cost of digital asset self-mining	47,189	61,170	(13,981)
Cost of digital asset hosted mining services	4,331	2,036	2,295
Total cost of revenue	85,138	71,312	13,826
Gross profit	30,106	8,213	21,893
Decrease in fair value of digital assets	6,558	10,688	(4,130)
Loss on disposal of property, plant and equipment	13,638	6	13,632
Impairment of property, plant and equipment	266,488	—	266,488
Colocation organizational and site startup costs	8,665	11,667	(3,002)
Advisor fees	333	603	(270)
Selling, general and administrative	44,846	32,287	12,559
Operating loss	(310,422)	(47,038)	(263,384)
Non-operating expense (income), net:
Interest expense (income), net	4,857	(2,187)	7,044
Change in fair value of warrants and contingent value rights	30,799	(621,464)	652,263
Loss on legal settlements	500	—	500
Other non-operating expense, net	10	157	(147)
Total non-operating expense (income), net	36,166	(623,494)	659,660
(Loss) income before income taxes	(346,588)	576,456	(923,044)
Income tax expense	600	205	395
Net (loss) income	$(347,188)	$576,251	$(923,439)

The following table summarizes gross profit and gross margin by reportable segment for each of the periods indicated (in

thousands).

	Three Months Ended March 31,
	2026	2025	Change
Colocation Segment
Colocation gross profit	$43,921	$467	$43,454
Colocation gross margin	57%	5%	51%
Digital Asset Self-Mining Segment
Digital asset self-mining gross (loss) profit	$(17,084)	$6,009	$(23,093)
Digital asset self-mining gross margin	(57)%	9%	(66)%
Digital Asset Hosted Mining Segment
Digital asset hosted mining gross profit	$3,269	$1,737	$1,532
Digital asset hosted mining gross margin	43%	46%	(3)%

Gross profit represents segment revenue less segment cost of revenue. Accordingly, the year over year changes in gross profit

and gross margin by segment are primarily driven by the changes in revenue and cost of revenue discussed in the “Revenue” and

“Cost of revenue” sections below.

Revenue

	Three Months Ended March 31,
	2026	2025	$ Change
Revenue:
Colocation revenue	$77,539	$8,573	$68,966
Digital asset self-mining revenue	30,105	67,179	(37,074)
Digital asset hosted mining revenue from customers	7,600	3,773	3,827
Total revenue	$115,244	$79,525	$35,719
Percentage of total revenue:
Colocation revenue	67%	11%
Digital asset self-mining revenue	26%	84%
Digital asset hosted mining revenue from customers	7%	5%
Total revenue	100%	100%

The following table presents the components of revenue for the periods indicated (dollars in thousands):


	Three Months Ended June 30,								Six Months Ended June 30,
	2026			2025			$ Change		2026			2025			$ Change
Colocation revenue	$	136,669		$	10,560		$	126,109	$	214,208		$	19,133		$	195,075
Digital asset self-mining revenue	21,535			62,424			(40,889)		51,640			129,603			(77,963)
Digital asset hosted mining revenue from customers	5,997			5,644			353		13,597			9,417			4,180
Total revenue	$	164,201		$	78,628		$	85,573	$	279,445		$	158,153		$	121,292
Percentage of total revenue:
Colocation revenue	83		%	13		%			77		%	12		%
Digital asset self-mining revenue	13		%	80		%			18		%	82		%
Digital asset hosted mining revenue from customers	4		%	7		%			5		%	6		%
Total revenue	100		%	100		%			100		%	100		%

Colocation revenue

Colocation revenue consists of fees charged to customers for licensed data center space, power and related services. Under our contract, the customer generally pays fixed monthly fees based on billable customer power capacity and variable usage‑based charges and other billable services. Power fees are passed through to our customer without markup and are recognized as revenue on a gross basis, with a corresponding charge to cost of colocation services. As a result, changes in power prices can cause fluctuations in colocation revenue that are not indicative of changes in our underlying colocation margins.

~~contracts,~~The ~~customers~~increase ~~generally~~in ~~pay~~colocation ~~fixed~~revenue ~~monthly~~for ~~fees~~the ~~based~~three onand ~~billable~~six ~~customer~~months ~~power~~ended ~~capacity~~June 30, 2026, compared to the three and ~~variable~~six ~~usage‑based~~months ~~charges~~ended June 30, 2025, was primarily attributable to incremental billable customer power capacity.

and other billable services. Power fees are passed through to customers without markup and are recognized as revenue on a gross

basis, with a corresponding charge to cost of colocation services. As a result, changes in power prices can cause fluctuations in

colocation revenue that are not indicative of changes in our underlying colocation margins.

The year over year increase in colocation revenue was primarily attributable to incremental billable customer power capacity at

our Denton, Texas and Marble, North Carolina data centers during the three months ended March 31, 2026.

Digital asset self-mining revenue

Digital asset self‑mining revenue consists primarily of bitcoin earned from operating our owned mining fleet. We participate in mining pools under which we receive consideration based on the hash rate we contribute to the pool.

~~mining~~The ~~pools~~decrease ~~under~~in ~~which~~self-mining werevenue ~~receive~~for ~~consideration~~the ~~based~~three onand ~~the~~six ~~hash~~months ~~rate~~ended weJune 30, ~~contribute~~2026, compared to the ~~pool~~three and six months ended June 30, 2025, was driven primarily by lower bitcoin production and lower average realized bitcoin prices.

The year over year decrease in self-mining revenue was driven primarily by lower bitcoin production and lower average

realized bitcoin prices during the three months ended March 31, 2026.

Cost of revenue

	Three Months Ended March 31,
	2026	2025	$ Change
Cost of revenue:
Cost of colocation services	$33,618	$8,106	$25,512
Cost of digital asset self-mining	47,189	61,170	(13,981)
Cost of digital asset hosted mining services	4,331	2,036	2,295
Total cost of revenue	$85,138	$71,312	$13,826

The following table presents the components of cost of revenue for the periods indicated (in thousands):

Cost of revenue includes the costs to operate our colocation, digital asset self‑mining, and digital asset hosted mining


	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		$ Change		2026		2025		$ Change
Cost of colocation services	$	56,686	$	9,430	$	47,256	$	90,304	$	17,536	$	72,768
Cost of digital asset self-mining	33,700		59,589		(25,889)		80,889		120,759		(39,870)
Cost of digital asset hosted mining services	3,771		4,584		(813)		8,102		6,620		1,482
Total cost of revenue	$	94,157	$	73,603	$	20,554	$	179,295	$	144,915	$	34,380

Cost of revenue includes the costs to operate our colocation, digital asset self‑mining, and digital asset hosted mining businesses, including power fees, depreciation, personnel and facility-related costs.

41Cost of colocation services

~~Colocation~~The increase in cost of colocation services for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, was driven primarily by incremental billable capacity, in line with increased colocation revenue.

~~The~~Cost ~~year over year increase in cost~~ of ~~colocation~~digital ~~services~~asset ~~was driven primarily by incremental billable capacity at our Denton,~~ self-mining

~~Texas~~The ~~and~~decrease ~~Marble,~~in ~~North~~cost ~~Carolina~~of ~~data~~digital ~~centers~~asset ~~during~~self-mining for the three and six months ended ~~March~~June 3130, 2026, compared to the three and six months ended June 30, 2025, was driven primarily by reduced self-mining activity, including lower power consumption resulting from the reallocation of power capacity to colocation operations and lower depreciation expense.

~~Digital asset self-mining cost of revenue~~37

~~The~~Gross ~~year over year decrease in cost of digital asset self-mining was driven primarily by reduced self-mining activity during the~~ Profit

~~three~~The ~~months~~following ~~ended~~table ~~March 31,~~summarizes ~~2026,~~gross ~~including~~profit ~~lower~~(loss) ~~power~~and ~~consumption~~gross ~~resulting~~margin ~~from~~by ~~the~~reportable ~~reallocation~~segment offor ~~power~~the ~~capacity~~periods toindicated (dollars in thousands):

colocation operations and lower depreciation expense as a larger portion of the mining fleet became fully depreciated.


	Three Months Ended June 30,									Six Months Ended June 30,
	2026			2025			Change			2026			2025			Change
Colocation Segment
Colocation gross profit	$	79,983		$	1,130		$	78,853		$	123,904		$	1,597		$	122,307
Colocation gross margin	59		%	11		%	48		%	58		%	8		%	50		%

Digital Asset Self-Mining Segment
Digital asset self-mining gross profit (loss)	$	(12,165)		$	2,835		$	(15,000)		$	(29,249)		$	8,844		$	(38,093)
Digital asset self-mining gross margin	(56)		%	5		%	(61)		%	(57)		%	7		%	(64)		%

Digital Asset Hosted Mining Segment
Digital asset hosted mining gross profit	$	2,226		$	1,060		$	1,166		$	5,495		$	2,797		$	2,698
Digital asset hosted mining gross margin	37		%	19		%	18		%	40		%	30		%	10		%

Gross profit (loss) represents segment revenue less segment cost of revenue. Accordingly, the changes in gross profit (loss) and gross margin by segment for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, are primarily driven by the changes in revenue and cost of revenue discussed in the “Revenue” and “Cost of revenue” sections above.

Operating Expenses

The following table summarizes the components of operating expenses for the periods indicated (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		$ Change		2026		2025		$ Change
Loss (gain) on fair value of digital assets	$	9,368	$	(29,797)	$	39,165	$	15,926	$	(19,109)	$	35,035

Loss on disposal of property, plant and equipment	1,273		4,166		(2,893)		14,911		4,172		10,739
Loss on remeasurement of assets held for sale	19,495		—		19,495		19,495		—		19,495
Impairment of property, plant and equipment	—		—		—		266,488		—		266,488
Loss on contract termination	41,948		—		41,948		41,948		—		41,948
Colocation organizational and site startup costs	27,039		11,655		15,384		35,704		23,322		12,382

Selling, general and administrative	49,389		45,285		4,104		94,568		78,175		16,393
Total operating expenses	$	148,512	$	31,309	$	117,203	$	489,040	$	86,560	$	402,480

Loss (gain) on fair value of digital assets

The loss (gain) on fair value of digital assets reflects the movement in fair value of bitcoin held from our self-mining operations for each period presented. The loss recognized for the three and six months ended June 30, 2026, compared to a gain for the three and six months ended June 30, 2025, reflects a decrease in the price of bitcoin during the respective periods.

Loss on remeasurement of assets held for sale

During the three months ended June 30, 2026, we classified certain mining equipment as held for sale and remeasured the assets to fair value less cost to sell, resulting in a $19.5 million loss. See Note 4 — Property, Plant, and Equipment and Note 9 — Fair Value Measurements for further detail.

Impairment of property, plant and equipment

	Three Months Ended March 31,
	2026	2025	$ Change
Impairment of property, plant and equipment	266,488	—	$266,488
Percentage of total revenue	231%	—%

During the three months ended March 31, 2026, we recognized non-cash impairment charges of $266.5 million on our mining-related property, plant and equipment. The charges resulted from sustained deterioration in bitcoin mining economics during the period, including declines in bitcoin prices, hashprice reaching historic lows, and significant decreases in secondary market values for mining equipment. Of the total charge, $151.6 million related to mining equipment whose carrying value exceeded current secondary market values, and $114.9 million related to mining infrastructure at facilities used in our self-mining operations, whose carrying values exceeded fair values determined using a discounted cash flow methodology. No impairment charges were recognized during the three months ended June 30, 2026, or during the three and six months ended June 30, 2025.

~~During~~Loss ~~the three months ended March 31, 2026, we recognized non-cash impairment charges of $266.5 million~~ on ~~our~~contract ~~mining-~~termination

~~related~~During ~~property~~the three months ended June 30, ~~plant~~2026, we entered into a termination and ~~equipment~~settlement agreement with Block, Inc. ~~The~~and ~~charges~~Proto ~~resulted~~Global ~~from~~LLC ~~sustained~~to ~~deterioration~~terminate inour ~~bitcoin~~existing contract and all future delivery obligations of mining ~~economics~~equipment ~~during~~thereunder, resulting in a loss of $41.9 million. We terminated this agreement in connection with the wind-down of our remaining mining obligations as part of our ongoing strategic transition to high-density colocation operations.

~~quarter,~~Colocation ~~including~~organizational ~~declines in bitcoin prices, hashprice reaching historic lows,~~ and ~~significant~~site ~~decreases~~startup ~~in secondary market values for~~ costs

~~mining~~Colocation ~~equipment.~~organizational Ofand ~~the~~site ~~total~~startup ~~charge~~costs are expected to continue declining as a percentage of revenue as our initial CoreWeave facilities reach full operational maturity, ~~$151.6~~though ~~million~~the ~~related~~Company tomay ~~mining~~incur ~~equipment~~similar ~~whose~~costs ~~carrying~~in ~~value~~future ~~exceeded~~periods ~~current~~in ~~secondary~~connection with new customer relationships and new site development activities.

~~market values, and $114.9 million related to mining infrastructure at facilities used in our self~~Non-~~mining~~Operating ~~operations~~Expenses, ~~whose carrying~~ Net

~~values~~The ~~exceeded~~following ~~fair~~table ~~values~~summarizes ~~determined~~the ~~using~~components aof ~~discounted~~non-operating ~~cash~~expenses ~~flow~~(income), ~~methodology.~~net Nofor ~~impairment~~the ~~charges~~periods ~~were~~indicated ~~recognized~~(in ~~during~~ thousands):

the three months ended March 31, 2025.


	Three Months Ended June 30,						Six Months Ended June 30,
	2026		2025		$ Change		2026		2025		$ Change
Loss on debt extinguishment	$	5,435	$	1,377	$	4,058	$	5,435	$	1,377	$	4,058
Interest expense (income), net	23,833		(1,185)		25,018		28,690		(3,372)		32,062

Change in fair value of warrants and contingent value rights	1,045,515		909,958		135,557		1,076,314		288,494		787,820

Other non-operating expense, net	152		207		(55)		662		364		298
Total non-operating expenses, net	$	1,074,935	$	910,357	$	164,578	$	1,111,101	$	286,863	$	824,238

Interest expense (income), net

The increase in interest expense (income), net for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, was driven primarily by interest incurred on the $3.30 billion aggregate principal amount of 7.75% Senior Secured Notes issued in May 2026 and on the $1.0 billion Term Loan Facility that was borrowed in March 2026 and repaid in May 2026.

Change in fair value of warrants and contingent value rights

	Three Months Ended March 31,
	2026	2025	$ Change
Change in fair value of warrants and contingent value rights	30,799	(621,464)	652,263
Percentage of total revenue	27%	(781)%

The increase in change in fair value of warrants and contingent value rights for the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, was driven by changes in our stock price during the respective periods.

~~The year over year decrease in change in fair value of warrants and contingent value rights shifted from a $621.5 million gain in~~ 39

the prior year period to a $30.8 million loss in the current period, driven by changes in our stock price during the respective periods.

Liquidity and Capital Resources

Sources and Uses of Cash

We finance our operating and capital requirements primarily through a combination of ~~(i)~~ cash and cash equivalents, cash generated from operations, customer prepayments received under our colocation arrangements, proceeds from sales of digital assets (iibitcoin), ~~cash~~and external financing activities, including debt financing arrangements. Customer prepayments under our colocation arrangements are associated with, and expected to offset a significant portion of, the capital expenditures required to build out and convert facilities for those arrangements.

~~generated~~Based ~~from~~on ~~operations~~our assessment of current and expected operating and capital expenditure requirements, ~~(iii)~~we ~~sales~~have ofdetermined ~~digital~~that ~~assets~~our ~~(bitcoin)~~available liquidity, ~~subject~~including tocash ~~market~~and ~~conditions~~cash equivalents, expected operating cash flows, and customer funding related to our ~~treasury~~colocation ~~strategy~~arrangements, will be sufficient to satisfy our cash requirements for at least the next twelve months from the date of this filing. The following table summarizes our cash and cash equivalents and the fair value of our digital assets at the dates indicated (~~iv)~~in thousands):

financing activities, including debt financing arrangements. We also receive customer prepayments under our colocation


	June 30, 2026		December 31, 2025

Cash and cash equivalents	$	1,769,735	$	311,378

Digital assets	49,675		222,000

	$	1,819,410	$	533,378

~~arrangements,~~Term ~~which~~Loan ~~are associated with, and are expected to offset a significant portion of, the capital expenditures required to build~~ Facility

~~out~~In March 2026, we entered into a loan facility credit agreement and ~~convert~~fully ~~facilities~~drew ~~for~~a ~~those~~$1.0 billion ~~arrangements~~senior secured loan facility (the “Term Loan Facility”). On May 6, 2026, we repaid in full all outstanding borrowings under the Term Loan Facility, including accrued interest and fees, using proceeds from the Senior Secured Notes offering described below, and terminated the facility. As of June 30, 2026, there were no remaining borrowings or obligations outstanding under the Term Loan Facility.

In March 2026, we entered into the Term Loan Facility, pursuant to which we borrowed the full $500.0 million initially

available under the Credit Agreement. Subsequently, in March 2026, we entered into the Incremental Amendment, pursuant to which

we borrowed the full $500.0 million incremental commitment.

In April 2026, our indirect wholly-owned subsidiary, Core Scientific Finance priced the private offering of $3.30 billion

aggregate principal amount of 7.75% Secured Notes at an issue price of 99.250% of the principal amount. In connection with the

offering of Secured Notes, Core Scientific Finance used a portion of the net proceeds to fund a debt service reserve account, and the

remaining proceeds to make a distribution to us. We used a portion of the net proceeds we received from Core Scientific Finance to

repay in full the outstanding balance under the Term Loan Facility, including accrued interest thereon and fees and expenses in

connection therewith. The offering of Secured Notes closed on May 6, 2026, and upon such repayment, we terminated the Term Loan

Facility. See “Senior Secured Notes Offering” under Recent Developments above for additional details.

During the three months ended March 31, 2026, we sold 2,385 bitcoin for aggregate proceeds of $208.3 million to fund planned

capital expenditures and other cash requirements. We will be opportunistic in liquidating the remainder of our bitcoin balance.

Our planned capital expenditures and other cash requirements may require additional external financing. We may from time to

time seek additional financing to fund our operations and capital expenditures. If we are unable to obtain financing on acceptable

terms, we may be required to reduce, delay or modify planned expenditures or pursue other alternatives.

We have assessed our current and expected operating and capital expenditure requirements and our current and expected

sources of liquidity, and have determined, based on our forecasted financial results and financial condition as of March 31, 2026, that

our available liquidity, including cash and cash equivalents and expected operating cash flows and customer funding related to our

colocation arrangements, will be sufficient to satisfy our cash requirements for at least the next twelve months.

The following table summarizes our cash and cash equivalents and the fair value of our digital assets (in thousands):

	March 31, 2026	December 31, 2025
Cash and cash equivalents	$1,005,148	$311,378
Digital assets	$37,312	$222,000

The following table presents our cash flows (in thousands):

	Three Months Ended March 31,
	2026	2025
Net cash provided by (used in) operating activities	249,877	(45,041)
Net cash used in investing activities	(386,652)	(89,016)
Net cash provided by (used in) financing activities	971,382	(4,198)

Net cash provided by (used in) operating activities increased to $249.9 million from $(45.0) million in the prior year period,

primarily due to customer prepayments received under our colocation arrangements and proceeds from sales of digital assets.

Net cash used in investing activities increased to $386.7 million from $89.0 million in the prior year period, primarily reflecting

capital expenditures related to our colocation expansion, primarily related to long-lead equipment and other data center development

costs.

Net cash provided by (used in) financing activities was $971.4 million compared to $(4.2) million in the prior year period,

primarily due to net proceeds from the Company's Term Loan Facility.

Material Cash Requirements

Our material cash requirements from known contractual and other obligations are discussed below on both a short-term and

long-term basis.

Short-Term Cash Requirements

Capital Expenditures and Other Commitments

During the three months ended March 31, 2026 and 2025, we spent $389.2 million and $84.0 million respectively, on capital

expenditures, primarily related to the conversion and expansion of our data center portfolio for colocation operations. As of March 31,

2026, we were contractually committed to approximately $1.47 billion, of which $434.0 million will be passed through to the

Company’s customer as invoiced. Substantially all of these expenditures are expected to occur within the next 12 months.

Operating Leases

For our operating lease payment obligations due within the next 12 months, see Note 5 — Leases to our consolidated financial

statements in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional details.

Long-Term Cash Requirements

Senior Secured Notes

InOn May 6, 2026, Core Scientific Finance, our indirect wholly-owned subsidiary, ~~Core~~completed ~~Scientific~~a ~~Finance,~~private ~~issued~~offering of $3.330 billion aggregate principal amount of 7.75% Senior Secured Notes due 2031. Core Scientific Finance used the net proceeds to fund a debt service reserve account and to make a distribution to the Company, a portion of which was used to repay and terminate the Term Loan Facility. As of June 30, 2026, $345 million remained in the debt service reserve account and is included in Restricted cash, net of current portion on our condensed consolidated balance sheet.

~~7.75%~~In connection with the Senior Secured Notes ~~due~~offering, ~~2031.~~we ~~For~~provided an uncapped completion guarantee for the ~~maturity~~benefit ~~date,~~of ~~principal~~the ~~amount~~noteholders ~~and~~with ~~terms~~respect to the completion of ~~these~~specified ~~notes~~data center development projects. This guarantee reflects our commitment to complete the specified development projects and is consistent with our existing contractual construction obligation, ~~see~~which ~~"Senior~~are ~~Secured~~discussed ~~Notes~~further below.

~~Offering"~~The ~~under~~Senior ~~Recent~~Secured ~~Developments~~Notes ~~above~~require semi-annual interest payments on May 15 and ~~Note~~November 615, —beginning ~~Debt~~November to15, ~~our~~2026. ~~consolidated~~Semi-annual ~~financial~~principal ~~statements~~amortization inon ~~Item~~May 115 and November 15 will commence on the First Installment Payment Date at an initial annual rate of ~~Part~~11.50% Iof the $3.30 billion original principal amount. We also have outstanding $460 million of ~~this~~2029 Convertible Notes and $625 million of 2031 Convertible Notes. For maturity dates, amortization schedules, and full terms of all outstanding debt, see Note 7 — Debt to our consolidated financial statements.

~~Quarterly Report on Form 10-Q.~~40

~~Convertible~~Deferred ~~Notes~~Revenue

WeCustomer ~~have~~prepayments ~~outstanding~~received ~~3.00%~~under ~~Convertible~~our ~~Senior~~colocation ~~Notes~~license ~~due~~agreements ~~2029~~represent a significant source of operating cash inflows and 0are recorded as deferred revenue until the related capacity is delivered and revenue is recognized.~~00%~~ ~~Convertible~~Colocation ~~Senior~~deferred ~~Notes~~revenue reflects advance payments received from our customer for contracted capacity, including prepaid base license fees received in connection with the customer-funded development of colocation facilities. During the initial billing period, CoreWeave receives build credits that offset a portion of amounts otherwise due, ~~2031~~which affects the timing of cash collection relative to revenue recognition. ~~For~~Deferred revenue is recognized as revenue as capacity is placed into service over the course of several billing cycles as the prepaid fees are used up. Hosted mining deferred revenue reflects deposits received from customers in advance of providing equipment deployment, monitoring, and infrastructure services under our hosted mining arrangements. The following table presents a rollforward of deferred revenue for the six months ended June 30, 2026:

maturity dates, principal amounts, and terms of these instruments, see Note 6 — Debt to our consolidated financial statements in Item


	Deferred Revenue from Colocation Services		Deferred Revenue from Hosted Mining Services		Total Deferred Revenue
Balance at December 31, 2025	$	553,878	$	1,973	$	555,851
Cash payments received	181,149		2,154		183,303
Revenue recognized - amounts billed and earned	(58,710)		(1,972)		(60,682)
Non-cash straight line adjustment - base license fees earned but not yet billed	(24,029)		—		(24,029)
Balance at June 30, 2026	$	652,288	$	2,155	$	654,443

1The ofnon-cash ~~Part~~straight-line Iadjustment ofreflects ~~this~~the ~~Quarterly~~base ~~Report~~license onfees ~~Form~~that ~~10-Q~~are earned ratably over the contract term under ASC 842 but are not yet due from customer under the contractual billing schedule. This component reduces colocation deferred revenue and does not represent a cash receipt. Hosted mining deferred revenue is immaterial to our consolidated balance sheet.

~~Capital~~Digital ~~Expenditures~~Asset Sales

WeDuring ~~expect~~the six months ended June 30, 2026, we mined approximately 695 bitcoin, sold 2,385 bitcoin for aggregate proceeds of $208.2 million to ~~incur~~fund ~~significant~~planned capital expenditures ~~beyond~~and ~~the~~other ~~next~~cash 12requirements, ~~months~~and asrecognized wea ~~continue~~$15.9 million decrease in fair value, resulting in a closing balance of 848 bitcoin with a fair value of $50 million, compared to ~~convert~~2,537 bitcoin with a fair value of $222 million at December 31, 2025. We will be opportunistic in monetizing our remaining ~~data~~bitcoin holdings, subject to market conditions and our treasury strategy.

~~center~~Cash ~~portfolio~~flow ~~to colocation infrastructure and pursue new site acquisitions to expand our footprint. The pace and magnitude of these~~ Summary

The following table presents our cash flows for the periods indicated (in thousands):

expenditures will depend on customer deployment schedules, the timing of site conversions, and the availability and cost of financing.


	Six Months Ended June 30,
	2026		2025



Net cash provided by (used in) operating activities	$	230,949	$	(11,041)
Net cash used in investing activities	$	(1,182,891)	$	(208,624)
Net cash provided by (used in) financing activities	$	3,191,955	$	(35,970)

Operating ~~Leases~~Activities

~~For~~The ~~our~~improvement ~~operating~~of ~~lease~~approximately ~~payment~~$242.0 ~~obligations~~million ~~due~~in ~~beyond~~cash ~~the~~provided ~~next~~by 12(used ~~months,~~in) ~~see~~operating ~~Note~~activities 5was —primarily ~~Leases~~due to: ~~our consolidated financial~~

~~statements~~•Digital inasset ~~Item~~sales: 1$208.2 million of ~~Part~~proceeds Ifrom sales of ~~this~~digital ~~Quarterly~~assets ~~Report~~generated onby ~~Form 10~~self-Qmining ~~for~~revenues ~~additional~~during ~~details~~the six months ended June 30, 2026, as management elected to monetize the majority of our bitcoin holdings to fund capital requirements.

•Non-cash charges: While net loss increased $1.1 billion year-over-year, this was substantially offset by a corresponding increase in non-cash charges, most notably the $787.8 million increase in fair value of warrant and contingent value rights liabilities and the $266.5 million impairment of property, plant and equipment recognized in the current period.

Continued growth and scaling of our colocation operations, including higher billable customer power capacity, increased customer prepayments received under our colocation arrangement, and the associated operating cash flows generated as our colocation business ramps towards full operational capacity also contributed to the overall improvement in operating cash flows.

Investing Activities

The increase in cash used in investing activities reflects higher capital expenditures of $954.2 million for the six months ended June 30, 2026 compared to $205.3 million for the six months ended June 30, 2025, driven by our conversion and expansion of data center infrastructure for colocation operations. Of the $954.2 million of capital expenditures, $180.9 million was funded by CoreWeave pursuant to its existing colocation service agreement.

In addition, during the six months ended June 30, 2026, we paid $232.5 million in connection with the acquisition of land and development rights in Hunt County, Texas. See Note 3 — Asset Acquisition for further detail.

Financing Activities

The improvement in cash provided by (used in) financing activities was primarily driven by $3.3 billion in gross proceeds from the issuance of the Senior Secured Notes in May 2026, partially offset by the repayment of $1.0 billion of outstanding borrowings under the Term Loan Facility.

As of June 30, 2026, we were contractually committed to approximately $1.0 billion of future cash expenditures under outstanding purchase and construction commitments, of which $264 million will be passed through to our customer as invoiced. These commitments relate to the remaining build-out at existing customer conversion sites, our recently acquired Hunt County, Texas campus, and new development activities undertaken for prospective customers. Substantially all of these expenditures are expected to occur within the next 12 months. We expect to incur significant capital expenditures beyond the next 12 months as we continue to develop our data center portfolio. We also have ongoing operating lease obligations for our data center and office facilities; for the amounts and timing of those obligations, see Note 6 — Leases to our condensed consolidated financial statements.

We may from time to time seek additional financing to fund our operations and capital expenditures. If we are unable to obtain financing on acceptable terms, we may be required to reduce, delay, or modify planned expenditures or pursue other alternatives.

Critical Accounting Estimates

The critical accounting estimates, assumptions, judgments and the related policies that we believe have the most significant impact on our condensed consolidated financial statements are described below.

impact on our consolidated financial statements are described below.

Property, Plant, and Equipment

Our mining-related property, plant, and equipment involves significant estimates, including the determination of useful lives and the evaluation of recoverability and fair value. These estimates require judgment about future bitcoin mining economics, including technology improvements, bitcoin prices, hashprice, power prices, secondary market values for mining equipment, and the assumptions underlying fair value measurements such as discount rates and projected cash flows. During the six months ended June 30, 2026, we recognized significant impairment charges on our mining-related assets (see Note 4 — Property, Plant, and Equipment and Note 9 — Fair Value Measurements to our condensed consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q).

and the evaluation of recoverability and fair value. These estimates require judgment about future bitcoin mining economics, including

technology improvements, bitcoin prices, hashprice, power prices, secondary market values for mining equipment, and the

assumptions underlying fair value measurements such as discount rates and projected cash flows. During the three months ended

March 31, 2026, we recognized significant impairment charges on our mining-related assets (see Note 3 — Property, Plant, and

Equipment and Note 8 — Fair Value Measurements to our consolidated financial statements in Item 1 of Part I of this Quarterly

Report on Form 10-Q). The fair value of mining infrastructure is particularly sensitive to the discount rate applied to projected cash

flows; refer to Note 8 for the significant unobservable inputs used in the Level 3 measurement.

Stock-Based Compensation

We have outstanding equity awards that include performance conditions, the achievement of which must be assessed by management at each reporting date. Compensation expense for these awards is recognized based on the estimated number of awards expected to vest, applying a cumulative catch-up adjustment when those estimates change. The assessment of probable achievement requires significant judgment, including assumptions about our infrastructure deployment progress, customer pipeline activity, and a degree of Compensation Committee discretion. Given the range of potential payout outcomes, changes in management's probability assessments could result in material adjustments to stock-based compensation expense recognized in future periods.

~~management~~Management atbelieves ~~each~~its ~~reporting~~current ~~date~~estimates are reasonable based on available information. ~~Compensation~~Actual ~~expense~~results ~~for~~may ~~these~~differ, ~~awards~~and isany ~~recognized~~such ~~based~~differences oncould ~~the~~materially ~~estimated~~impact ~~number~~our offinancial ~~awards~~condition and results of operations.

expected to vest, applying a cumulative catch-up adjustment when those estimates change. The assessment of probable achievement

requires significant judgment, including assumptions about our infrastructure deployment progress, customer pipeline activity, and a

degree of Compensation Committee discretion. Given the range of potential payout outcomes, changes in management's probability

assessments could result in material adjustments to stock-based compensation expense recognized in future periods.

Management believes its current estimates are reasonable based on available information. Actual results may differ, and any

such differences could materially impact our financial condition and results of operations.

Recent Accounting Pronouncements

For a discussion of new accounting standards relevant to our business, refer to Note 2 — Summary of Significant Accounting Policies to our condensed consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q.

~~Policies to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q.~~42

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in the price of bitcoin and commodities.

our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of

fluctuations in the price of bitcoin and commodities.

Risk Regarding the Price of Bitcoin

As of ~~March~~June 3130, 2026, we held ~~547~~848 bitcoin, with a carrying value of $~~37.3~~50 million, all of which were produced from our bitcoin mining operations.

~~mining~~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.

WeBitcoin ~~cannot~~prices ~~predict~~for the ~~future~~six ~~market~~months ~~price~~ended ofJune 30, ~~bitcoin~~2026 ~~and,~~ranged asfrom ~~such~~a low of $58,097 weto ~~cannot~~a ~~predict~~high ~~future~~of ~~changes~~$97,877, inwith ~~the~~an ~~carrying~~average ~~value~~price of ~~our~~ $74,142.

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, 2026 ranged from a low of $60,123 to a high of $97,877, with an average

price of $76,649.

Interest Rate Risk

As of ~~March~~June 3130, 2026, we had ~~$1.0~~no ~~billion~~variable-rate debt outstanding. ~~under~~The ~~our~~ Term Loan Facility, which ~~bears~~bore interest at Term SOFR plus 2.50% per annum, was repaid in full and terminated on May 6, 2026, using proceeds from the Senior Secured Notes offering. Our primary debt obligations as of June 30, 2026 consist of the Senior Secured Notes, which bear interest at a fixed rate of 7.75% per annum, the 2029 Convertible Notes, which bear interest at a fixed rate of 3.00% per annum, and the 2031 Convertible Notes, which bear no stated interest. As of June 30, 2026, we do not have material exposure to interest rate fluctuation risk on our debt. We do not currently use interest rate hedging instruments to manage this exposure. See Note 7 — Debt to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q for additional details.

Overnight Financing Rate (“SOFR”) plus 2.50% per annum. A hypothetical 100 basis point increase in Term SOFR would increase

our annual interest expense by approximately $10.0 million. We do not currently use interest rate hedging instruments to manage this

exposure. See Note 6 — Debt to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q for

additional details.

Commodity Price Risk

Certain operating costs incurred by us are subject to price fluctuations caused by the volatility of underlying commodity prices, the most significant of which is electricity. We closely monitor the cost of electricity at all of our locations. Our colocation customer agreements include power pass-through provisions that allow us to recover the cost of customer power usage. We did not have commodity derivative instruments outstanding as of June 30, 2026.

the most significant of which is electricity. We closely monitor the cost of electricity at all of our locations. Our colocation customer

agreements include power pass-through provisions that allow us to recover the cost of customer power usage. We did not have

commodity derivative instruments outstanding as of March 31, 2026.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, have conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2026.

~~evaluation~~Based ofon ~~the~~that ~~effectiveness~~evaluation, ofour ~~the~~Chief ~~design~~Executive Officer and ~~operation~~our Chief Financial Officer have concluded that, as of June 30, 2026, our disclosure controls and procedures ~~(as~~were ~~defined~~not effective due to the material weakness in ~~Rules~~internal ~~13a-15(e)~~control over financial reporting described below.

~~and~~As ~~15d~~previously disclosed in our Annual Report on Form 10-~~15(e)~~K ~~under~~for the ~~Exchange~~year ~~Act)~~ended asDecember 31, of2025, ~~March~~we 31identified a material weakness in our internal control over financial reporting. As of June 30, 2026, this material weakness has not been remediated.

~~Based~~Our ondisclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving the desired control objectives. Our management recognizes that ~~evaluation~~any control system, ~~our~~no ~~Chief~~matter ~~Executive~~how ~~Officer~~well designed and ~~our~~operated, ~~Chief~~is ~~Financial~~based ~~Officer~~upon ~~have~~certain ~~concluded~~judgments and assumptions and cannot provide absolute assurances that its objectives will be met. Similarly, asan evaluation of ~~March~~controls 31cannot provide absolute assurances that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have not been detected.

~~2026, our disclosure controls and procedures were not effective due to the material weakness in internal control over financial~~ 43

reporting described below.

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, we identified a material

weakness in our internal control over financial reporting. As of March 31, 2026, this material weakness has not been remediated.

Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable

assurance of achieving the desired control objectives. Our management recognizes that any control system, no matter how well

designed and operated, is based upon certain judgments and assumptions and cannot provide absolute assurances that its objectives

will be met. Similarly, an evaluation of controls cannot provide absolute assurances that misstatements due to error or fraud will not

occur or that all control issues and instances of fraud, if any, have not been detected.

Material Weakness in Internal Control over Financial Reporting

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness previously identified and which remains unremediated as of June 30, 2026 is as follows:

isWe adid ~~reasonable~~not ~~possibility~~effectively ~~that~~operate acontrols ~~material~~to ~~misstatement~~account for intended demolition of ~~our~~building ~~annual~~and orinfrastructure ~~interim~~assets, ~~financial~~including ~~statements~~evaluation ~~will~~of ~~not~~impairment, berelated ~~prevented~~to orthe ~~detected~~conversion of facilities from digital asset mining operations to HPC colocation infrastructure due to insufficient complement of trained personnel.

This material weakness resulted in material misstatements to property, plant and equipment on the consolidated balance sheet and impairment of property, plant and equipment on the consolidated statement of operations, which were corrected prior to the issuance of the consolidated financial statements as of and for the year ended December 31, 2025, however, resulted in the restatement of previously issued annual and interim financial statements. The control deficiency described above created a reasonable possibility that a material misstatement of the consolidated financial statements will not be prevented or detected on a timely basis., ~~The~~we concluded the deficiency represents a material weakness ~~previously~~in ~~identified~~our internal control over financial reporting and ~~which~~our ~~remains~~internal ~~unremediated~~control over financial reporting was determined to be not effective as of ~~March~~ December 31, ~~2026~~2025 isand continues to be not effective as ~~follows:~~of June 30, 2026.

We did not effectively operate controls to account for intended demolition of building and infrastructure assets, including

evaluation of impairment, related to the conversion of facilities from digital asset mining operations to HPC colocation infrastructure

due to insufficient complement of trained personnel.

This material weakness resulted in material misstatements to property, plant and equipment on the consolidated balance sheet

and impairment of property, plant and equipment on the consolidated statement of operations, which were corrected prior to the

issuance of the consolidated financial statements as of and for the year ended December 31, 2025, however, resulted in the restatement

of previously issued annual and interim financial statements. The control deficiency described above created a reasonable possibility

that a material misstatement of the consolidated financial statements will not be prevented or detected on a timely basis, we concluded

the deficiency represents a material weakness in our internal control over financial reporting and our internal control over financial

reporting was determined to be not effective as of December 31, 2025 and continues to be not effective as of March 31, 2026.

Remediation Plan for the Material Weakness

With the oversight of senior management and the Audit Committee, we have developed a remediation plan to address the material weakness. The plan includes the elements described below, which we are in various stages of implementing.

~~material~~•Implementing ~~weakness.~~additional ~~The~~training ~~plan~~for ~~includes~~accounting personnel on the ~~elements~~evaluation ~~described~~of ~~below~~novel transactions related to property, ~~which~~plant and equipment. During the six months ended June 30, 2026, we ~~are~~conducted intraining ~~various~~for ~~stages~~accounting personnel on the identification of ~~implementing~~novel and non-routine transactions and completed an assessment of the scope of property, plant and equipment transactions subject to enhanced review procedures during the period.

•Implementing additional ~~training~~levels ~~for~~of management review and oversight, including consultation with external technical accounting ~~personnel~~resources onas necessary, over significant accounting conclusions related to property, plant and equipment, including those involving the ~~evaluation~~application of accounting guidance to novel or non-routine transactions. ~~related~~During tothe six months ended June 30, 2026, we implemented a quarterly management review process for property, plant and equipment and established an accounting policy review committee. During the first and second quarter of 2026, the accounting policy review committee met and completed review of the Company’s application of accounting guidance to non-routine transactions and accounting policies and concluded that no policy changes were required.

~~plant~~We ~~and~~believe ~~equipment.~~our ~~During~~remediation plan will be sufficient to remediate the ~~three~~material ~~months~~weakness ~~ended~~upon ~~March~~the completion of the annual assessment of internal control over financial reporting as of December 31, 2026. However, wethe ~~conducted~~material ~~training~~weakness will not be considered remediated until management completes the design and implementation of the actions described above and the controls operate for ~~accounting~~a ~~personnel~~sufficient period of time, and management has concluded, through testing, that these controls are effective. As we test our internal controls over financial reporting, we may determine that additional measures or modifications to the remediation plan are necessary or appropriate.

on the identification of novel and non-routine transactions.

•Implementing additional levels of management review and oversight, including consultation with external technical

accounting resources as necessary, over significant accounting conclusions related to property, plant and equipment,

including those involving the application of accounting guidance to novel or non-routine transactions. During the three

months ended March 31, 2026, we implemented a quarterly management review process for property, plant and

equipment and established an accounting policy review committee.

We believe our remediation plan will be sufficient to remediate the material weakness. However, the material weakness will not

be considered remediated until management completes the design and implementation of the actions described above and the controls

operate for a sufficient period of time, and management has concluded, through testing, that these controls are effective. As we test our

internal controls over financial reporting, we may determine that additional measures or modifications to the remediation plan are

necessary or appropriate.

Changes in Internal Control over Financial Reporting

Except for the ongoing remediation efforts described above, during the most recently completed fiscal quarter, there was no change in Core Scientific, Inc.’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

~~change in Core Scientific, Inc.’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the~~ 44

~~Exchange~~PART ~~Act)~~II. ~~that~~OTHER ~~has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial~~ INFORMATION

reporting.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in lawsuits, claims and other legal matters that arise in the ordinary course of business. The outcome of these matters cannot be predicted with certainty, and the resolution of one or more of these matters could materially adversely affect our business, financial position, results of operations or cash flows; to the extent the ultimate resolution of any matter differs from amounts accrued, we could incur charges that could be significant. Information regarding our material pending legal proceedings is included in Note 10 — Commitments and Contingencies, to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q.

matters cannot be predicted with certainty; however, we believe that the ultimate resolution of these matters will not have a material

adverse effect on our consolidated financial position, results of operations or cash flows. To the extent that the ultimate resolution of

any matter differs from our current estimates reflected in the recorded reserves, we could incur additional charges that could be

significant. Information regarding our material pending legal proceedings is included in Note 9 — Commitments and Contingencies,

to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

For a discussion of our risk factors, see Part I, Item 1A. — “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the SEC on March 2, 2026.

~~the~~There ~~year~~were ~~ended~~no ~~December~~material ~~31,~~changes ~~2025,~~during ~~which~~the ~~was~~period ~~filed~~covered ~~with~~in this Quarterly Report to the ~~SEC~~risk onfactors ~~March~~previously 2disclosed in the Annual Report, ~~2026~~except for the risk factors noted below.

~~There~~We ~~were~~may nobe ~~material~~unable ~~changes~~to ~~during~~attract ~~the~~new ~~period~~high-density ~~covered~~colocation incustomers, ~~this~~which ~~Quarterly~~could ~~Report~~constrain toour ~~the~~growth ~~risk~~and ~~factors~~leave ~~previously~~our ~~disclosed~~revenue independent ~~the~~on a single counterparty.

~~Annual~~Our ~~Report~~HPC colocation revenue is currently derived from a single customer, ~~except~~and our strategy depends on our ability to secure additional customers beyond our existing contract. We compete for ~~the~~new customers with major data center REITs, hyperscalers, and purpose-built data center developers, many of whom have greater resources and more established track records than we do. If we are unable to attract new customers on acceptable terms, or at all, our growth may be constrained and our revenue will remain dependent on one counterparty, exposing us to heightened risk ~~factors~~if ~~noted~~that ~~below~~customer reduces, delays, or terminates its commitments.

Our indebtedness and liabilities could limit the cash flow available for our operations, expose us to risks that could adversely affect our business, financial condition and results of operations and impair our ability to satisfy our obligations under the notes.

~~our~~As ~~business~~of June 30, ~~financial~~2026, ~~condition~~we ~~and~~had ~~results~~approximately $4.4 billion aggregate principal amount of ~~operations~~indebtedness ~~and~~for ~~impair~~borrowed ~~our~~money. ~~ability~~We may also incur additional indebtedness to ~~satisfy~~meet future financing needs. Our indebtedness could have significant negative consequences for our ~~obligations~~security ~~under~~holders ~~the~~and ~~notes.~~our business, results of operations and financial condition by, among other things:

As of March 31, 2026, we had approximately $2.09 billion aggregate principal amount of indebtedness for borrowed money. In

addition, in May 2026, Core Scientific Finance, our indirect wholly owned subsidiary, issued $3.30 billion aggregate principal amount

of Secured Notes. We may also incur additional indebtedness to meet future financing needs. Our indebtedness could have significant

negative consequences for our security holders and our business, results of operations and financial condition by, among other things:

•increasing our vulnerability to adverse economic and industry conditions;

•limiting our ability to obtain additional financing;

•requiring the dedication of a substantial portion of our cash flow from operations to service our indebtedness, which will reduce the amount of cash available for other purposes;

reduce the amount of cash available for other purposes;

•limiting our flexibility to plan for, or react to, changes in our business;

•diluting the interests of our existing stockholders as a result of issuing shares of our common stock upon conversion of the notes; and

~~notes;~~•placing ~~and~~us at a possible competitive disadvantage with competitors that are less leveraged than us or have better access to capital.

~~•placing~~Our usbusiness ator athe ~~possible~~business ~~competitive~~of ~~disadvantage~~Core Scientific Finance, as applicable, may not generate sufficient funds, and may otherwise be unable to maintain sufficient cash reserves, to pay amounts due under our or its indebtedness, including our 3.00% Convertible Senior Notes due 2029 (the “2029 Convertible Notes”), 0.00% convertible senior notes due 2031 (the “2031 Convertible Notes” and, together with ~~competitors~~the 2029 Convertible Notes, the “Convertible Notes”) and Secured Notes, and our cash needs may increase in the future. In addition, any future indebtedness that ~~are~~we ~~less~~may ~~leveraged~~incur ~~than~~may uscontain financial and other restrictive covenants that limit our ability to operate our business, raise capital or ~~have~~make ~~better~~payments ~~access~~under our other indebtedness. If we or Core Scientific Finance, as applicable, fail to comply with these covenants or to make payments under our or its indebtedness when due, then we or Core Scientific Finance would be in default under that indebtedness, which could, in turn, result in that and other indebtedness becoming immediately payable in full.

~~capital.~~45

Our business or the business of Core Scientific Finance, as applicable, may not generate sufficient funds, and may otherwise be

unable to maintain sufficient cash reserves, to pay amounts due under our or its indebtedness, including our 3.00% Convertible Senior

Notes due 2029 (the “2029 Convertible Notes”), 0.00% convertible senior notes due 2031 (the “2031 Convertible Notes” and, together

with the 2029 Convertible Notes, the “Convertible Notes”) and Secured Notes, and our cash needs may increase in the future. In

addition, any future indebtedness that we may incur may contain financial and other restrictive covenants that limit our ability to

operate our business, raise capital or make payments under our other indebtedness. If we or Core Scientific Finance, as applicable, fail

to comply with these covenants or to make payments under our or its indebtedness when due, then we or Core Scientific Finance

would be in default under that indebtedness, which could, in turn, result in that and other indebtedness becoming immediately payable

in full.

Provisions in our indentures could delay or prevent an otherwise beneficial takeover of us.

Certain provisions in the indentures governing our Convertible Notes or the Secured Notes, or agreements governing any future indebtedness, could make a third-party attempt to acquire us more difficult or expensive. For example, if a takeover constitutes a fundamental change under the indentures governing our Convertible Notes, then, except as described in the applicable indenture, noteholders of such Convertible Notes will have the right to require us to repurchase their notes for cash. The indenture governing the Secured Notes contains a similar requirement for Core Scientific Finance to offer to repurchase for cash such Secured Notes upon the occurrence of a change of control as set forth in such indenture. In addition, if a takeover constitutes a make-whole fundamental change under the applicable indenture governing our Convertible Notes, then we may be required to temporarily increase the conversion rate for any conversion of such Convertible Notes. In any such case, and in other cases, our obligations under the indentures governing our Convertible Notes or Secured Notes, or agreements governing any future indebtedness, could increase the cost of acquiring us or otherwise discourage a third party from acquiring us or removing incumbent management, including in a transaction that noteholders or holders of our common stock may view as favorable.

indebtedness, could make a third-party attempt to acquire us more difficult or expensive. For example, if a takeover constitutes a

fundamental change under the indentures governing our Convertible Notes, then, except as described in the applicable indenture,

noteholders of such Convertible Notes will have the right to require us to repurchase their notes for cash. The indenture governing the

Secured Notes contains a similar requirement for Core Scientific Finance to offer to repurchase for cash such Secured Notes upon the

occurrence of a change of control as set forth in such indenture. In addition, if a takeover constitutes a make-whole fundamental

change under the applicable indenture governing our Convertible Notes, then we may be required to temporarily increase the

conversion rate for any conversion of such Convertible Notes. In any such case, and in other cases, our obligations under the

indentures governing our Convertible Notes or Secured Notes, or agreements governing any future indebtedness, could increase the

cost of acquiring us or otherwise discourage a third party from acquiring us or removing incumbent management, including in a

transaction that noteholders or holders of our common stock may view as favorable.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended ~~March~~June 3130, 2026, ~~nominal~~0.3 million shares of common stock were issued upon the exercise of Tranche 1 Warrants in reliance on the exemption provided by Section 1145 of the Bankruptcy Code. The Company received cash proceeds of $1.2 million from the exercise.

During the quarter ended June 30, 2026, 1.2 million shares of common stock were issued upon the exercise of Tranche 2 Warrants in reliance on the exemption provided by Section 1145 of the Bankruptcy Code. The Company received minimal cash proceeds offrom the exercise.

$0.1 million from the exercise.

During the quarter ended March 31, 2026, 0.4 million shares of common stock were issued upon the exercise of Tranche 2

Warrants in reliance on the exemption provided by Section 1145 of the Bankruptcy Code. The Company received minimal cash

proceeds from the exercise.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Trading Arrangements

During the three months ended ~~March 31~~June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

~~trading~~Clawback ~~arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.~~Policy

48In connection with the restatement described in Part I, Item 4, the Company's Board of Directors completed its analysis under the Company's clawback policy as required by SEC Rule 10D-1. Based on this analysis, the Board determined that no recovery of previously paid incentive-based compensation was required.

Item 6. Exhibits

	~~Exhibit Description~~	Exhibit Description
10.1	Agreement and Plan of Merger, dated as of May 5, 2026, by and among Core Scientific, Inc., Polar Merger Sub, LLC, Top Access Enterprises Limited, Polaris DS LLC, and solely for the purposes of Article XI (and Article I and Article VII to the extent relating thereto), Altair LLC. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 6, 2026).
4.1		Indenture, dated as of May 6, 2026, by and between the Issuer and Wilmington Savings Fund Society, FSB, as Trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 6, 2026).
10.2*	Membership Interest Purchase Agreement, dated December 26, 2025, by and among Core Scientific, Inc. and McCall Family Limited Partnership.
4.2		Form of Global Note, representing the Issuer’s 7.750% Senior Secured Notes due 2031 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K filed May 6, 2026).
10.3	Cooperation Agreement, dated as of February 18, 2026, by and between Core Scientific, Inc. and Two Seas Capital LP (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on February 19, 2026).
10.1		Agreement and Plan of Merger, dated as of May 5, 2026, by and among Core Scientific, Inc., Polar Merger Sub, LLC, Top Access Enterprises Limited, Polaris DS LLC, and solely for the purposes of Article XI (and Article I and Article VII to the extent relating thereto), Altair LLC. (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 6, 2026).
10.4	Delayed-Draw Bridge Credit Agreement, dated as of March 4, 2026, among Core Scientific, Inc., as borrower, the lenders party thereto from time to time, and Morgan Stanley Senior Fundings, Inc., as administrative agent and as collateral agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 6, 2026).
31.1*		Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
10.5	Amendment No. 1 to Credit Agreement, dated as of March 18, 2026, among Core Scientific, Inc., as borrower, JPMorgan Chase Bank, N.A., as amendment no. 1 term lender, and Morgan Stanley Senior Funding, Inc., as administrative agent and as collateral agent (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on March 23, 2026).
31.2*		Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.1*	Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.2*		Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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32.2*	Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.SCH		XBRL Taxonomy Extension Schema Document.
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___________

*	Filed or furnished herewith.
††	Certain of the exhibits and schedules to these exhibits have been omitted in accordance with Regulation S-K Item 601(a)(5). The registrant agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.


*			Filed or furnished herewith.

4947

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

signed on its behalf by the undersigned, thereunto duly authorized.


			Core Scientific, Inc.

			By:						/s/ Jim Nygaard
			Name:						Jim Nygaard
			Title:						Duly Authorized Officer & Principal Financial Officer
			Date:						July 28, 2026

	Core Scientific, Inc.
	By:		/s/ Jim Nygaard
	Name:		Jim Nygaard
	Title:		Duly Authorized Officer & Principal Financial Officer
	Date:		May 6, 2026

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