Core Scientific, Inc.
OTCPK:CORZ.Q
$ 3.71
$-0.32 (-7.94%)
$ 3.71
$-0.32 (-7.94%)
End-of-day quote: 03/11/2024

Core Scientific Stock

About Core Scientific

Core Scientific, Inc. is an operator of purpose-built facilities for digital asset mining and a provider of blockchain infrastructure, software solutions and services. Core Scientific share price history

The company mines digital assets for its own account and provides hosting services for other large-scale miners. The company is one of the largest blockchain infrastructure, hosting provider, and digital asset mining companies in North America. The company mines bitcoin for third-party hosting customers and for its own account at its eight fully operational data centers. In February 2022, the Muskogee City-County Port Authority (Oklahoma) announced an agreement with the company to develop a 500MW data center at the Port of Muskogee John T. Griffin Industrial Park which remains substantially undeveloped.

Since 2018, the company has operated for itself and on behalf of its customers and related parties, miners of varying models, types, and manufacturers, but primarily miners of bitcoin manufactured by Bitmain Technologies, Ltd (Bitmain). The company has accumulated significant expertise in the installation, operation, optimization, and repair of digital mining equipment.

The company's hosting colocation business provides a full suite of services to digital asset mining customers. The company provides deployment, monitoring, troubleshooting, optimization, and maintenance of its customers' digital asset mining equipment; and necessary electrical power and repair, and other infrastructure services necessary to operate, maintain, and efficiently mine digital assets.

Operations and Solutions

As a large-scale bitcoin digital asset miner and provider of blockchain solutions, the company is well positioned to serve customers in a rapidly expanding market for digital asset mining and blockchain solutions. Core Scientific share price history

As one of the largest owner operator of digital asset mining infrastructure in North America, the company focuses on colocation clients with large-scale deployments and provide power, racks, proprietary thermodynamic management (heat dissipation and airflow management), redundant connectivity, 24/7 security, as well as its proprietary software platforms, Minder and MinderOS, which provides infrastructure management and custom firmware that are designed to increase performance and energy efficiency. The company's blockchain business is one of the only large-scale, vertically integrated digital asset mining and blockchain infrastructure and hosting solutions businesses in North America. The company's digital asset mining operation focuses on the generation of bitcoin by solving complex cryptographic algorithms to validate transactions on specific digital asset network blockchains, which is commonly referred to as mining.

The company's proprietary data centers in Georgia, Kentucky, North Carolina, North Dakota, and Texas are purpose-built facilities optimized for the unique requirements of high density blockchain computer servers. The company has eight fully operational data centers in Georgia (2), Kentucky (1), North Carolina (2), North Dakota (1) and Texas (2), with approximately 592MW of operating electric power as of December 31, 2022. The company's existing, completed facilities leverage its specialized construction proficiency by employing high-density, low-cost engineering and power designs.

Segments

The company operates through two segments, Equipment Sales and Hosting, and Mining

Equipment Sales and Hosting

This segment includes primarily the company's blockchain infrastructure and third-party hosting business and equipment sales to customers. The blockchain hosting business generates revenue through the sale of electricity-based consumption contracts for the company's hosting services. Equipment sales revenue is derived from its ability to leverage the company's partnerships with leading equipment manufacturers to secure equipment in advance, which is then sold to its customers when they are unable to obtain them otherwise.

Mining

This segment includes digital asset mining for the company's own account. This segment generates revenue from operating owned 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 in the form of bitcoin.

Mining Equipment

The company owns and hosts specialized computers (miners) configured for the purpose of validating transactions on multiple digital asset network blockchains (referred to as, mining), predominantly the bitcoin network. Substantially all of the miners the company owns and hosts are manufactured by Bitmain Technologies, Ltd (Bitmain) and incorporate application-specific integrated circuit (ASIC) chips specialized to solve blocks on the bitcoin blockchains using the 256-bit secure hashing algorithm (SHA-256) in return for bitcoin digital asset rewards.

As of December 31, 2022, the company had deployed approximately 234,000 bitcoin miners, which number consists of approximately 153,000 self-miners and approximately 81,000 hosted miners, which represented 15.7 exahash per second (EH/s) and 8.0 EH/s for self-miners and hosted miners, respectively.

Strategy

The company's business strategy is to increase the capacity and efficiency of its self-mining fleet and by enhancing its third-party colocation business. The company intends to strategically develop the infrastructure necessary to support business growth and profitability and take advantage of adjacent opportunities that leverage its mining expertise and capabilities.

Supplier Agreements

Industrial Power Contract with Murphy Electric Power Board

The company operates its Marble 1 facility in Marble, North Carolina at a power capacity up to 35,000 kW under an Industrial Power Contract (the Murphy IPC) originally executed on December 15, 2017, with Murphy Electric Power Board (the MEPB). The company's Marble 1 power rates are governed by MEPB's published rate schedule for large manufacturing service customers.

Master Services Agreement and Power Arrangements with Duke Energy Carolinas, LLC

The company operates its Marble 2 facility in Marble, North Carolina at a power capacity up to 69,000 kW under a Master Services Agreement (the MSA) originally executed with Duke Energy Carolinas, LLC (Duke) on June 25, 2018.

The company also entered into an Electric Service Agreement (the ESA) with Duke, effective June 10, 2019, for the supply of electric power to Marble 2. The company's Marble 2 power rates are governed by Duke Energy Carolinas published rate schedule which is overseen by the North Carolina Utilities Commission (the NCUC).

Electric Service Agreements with Dalton Utilities

The company operates two facilities at two separate locations in Dalton, Georgia at a total power capacity of 195,000 kW under an Electric Service Agreement originally executed on October 11, 2018 with The Board of Water, Light and Sinking Fund Commissioners (the Board of Commissioners) of the City of Dalton, Georgia (d/b/a Dalton Utilities, Dalton) for the supply of electric power to each of its hosting sites located at Boring Drive, Dalton, Georgia (the Boring Drive Site) and Industrial South, Dalton, Georgia (the Industrial South Site).

The company's base power rates in Dalton are governed by Dalton's Board of Commissioners are subject to change once each year.

Firm Power Contract and Related Arrangements with Tennessee Valley Authority (TVA)

The company has a Firm Power Contract (FPC) with TVA for the supply of electric power to the company's site near Calvert City, Kentucky.

Subject to other terms and conditions, the company operates as a Large Manufacturing Service customer in accordance with certain TVA service rate schedules as modified or replaced from time to time by agreement between the parties. The FPC may be terminated on or after April 29, 2025, by either the company or TVA upon at least five years' written notice. Similar to its MEPB/TVA governed Marble 1 facility, the company works to lower operating costs by participating in interruptible power and economic development incentive programs.

Electric Service Agreement with Nodak/Minnkota

The company entered into an Electric Service Agreement (the ESA) with Nodak Electric Cooperative and Minnkota Power Cooperative (MPC) to supply power to it 100,000 kW mining facility in Grand Forks, North Dakota. Operations at the Grand Forks facility began in June of 2022.

The ESA provides a fixed annual rate for power, escalating slightly over time through 2026.

Power Purchase Agreement with the City of Denton

Effective as of September 3, 2021, the company entered into a Power Purchase Agreement with the City of Denton, Texas, d/b/a Denton Municipal Electric, a Texas Municipal Corporation and Home-Rule City. The agreement provides for an electrical power capacity of up to 297,000kW for a term of seven years at the Denton Energy Center.

Master Energy Sales Agreement with MP2 Energy, LLC a Shell Subsidiary

Effective as of September 16, 2022, the company entered into a Master Energy Sales Agreement with retail electric provider MP2 Energy, LLC. The agreement provides for electrical power for the Cottonwood and Cedarvale data centers in Pecos, TX.

Intellectual Property

The company has filed over 70 patent applications and obtained issued patents in technologies, such as blockchain, data center management, infrastructure, and cooling.

Country
Founded:
2020
IPO Date:
04/05/2021
ISIN Number:
I_US21874A1060

Contact Details

Address:
210 Barton Springs Road, Suite 300, Austin, Texas, 78704, United States
Phone Number
512 402 5233

Key Executives

CEO:
Sullivan, Adam
CFO
Sterling, Denise
COO:
Data Unavailable