Core Scientific Inctx
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
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7 — Fair Value Measurements
- FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
During the three months ended March 31, 2025, an increase in fair value of CVRs of $12.8 million was included in Change in fair value of warrant and contingent value rights on the Company’s Consolidated Statements of Operations.
During the three months ended March 31, 2025, a decrease in fair value of Warrants of $634.3 million was included in Change in fair value of warrant and contingent value rights on the Company’s 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, 2025 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $672,646 | $— | $— | $672,646 |
| Digital assets | 80,646 | — | — | 80,646 |
| Total assets measured at fair value on a recurring basis | $753,292 | $— | $— | $753,292 |
| Liabilities: | ||||
| Contingent value rights | $17,089 | $— | $— | $17,089 |
| Warrants | 421,902 | — | — | 421,902 |
| Total liabilities measured at fair value on a recurring basis | $438,991 | $— | $— | $438,991 |
The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $832,213 | $— | $— | $832,213 |
| Digital assets | 23,893 | — | — | 23,893 |
| Total assets measured at fair value on a recurring basis | $856,106 | $— | $— | $856,106 |
| Liabilities: | ||||
| Contingent value rights | $4,272 | $— | $— | $4,272 |
| Warrants | 1,097,285 | — | — | 1,097,285 |
| Total liabilities measured at fair value on a recurring basis | $1,101,557 | $— | $— | $1,101,557 |
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 825-10, Financial Instruments. The following tables present the carrying amounts and estimated fair values of the Convertible Notes as of March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 2029 Convertible Notes | $460,000 | $488,188 | Level 1 |
| 2031 Convertible Notes | $625,000 | $520,625 | Level 1 |
December 31, 2024
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 2029 Convertible Notes | $460,000 | $703,100 | Level 1 |
| 2031 Convertible Notes | $625,000 | $615,800 | Level 1 |
Nonrecurring Fair Value Measurements
The Company’s non-financial assets, including property, plant and equipment, are measured at estimated fair value on a nonrecurring basis and are adjusted only upon impairment or when held for sale. During the three months ended March 31, 2025, the Company did not recognize any impairment or other fair value adjustments related to non-financial assets measured at fair value on a nonrecurring basis.
No non-financial assets were classified as Level 3 as of March 31, 2025 or December 31, 2024.
The Company’s financial instruments, that are not subject to recurring fair value measurements, include cash and cash equivalents (other than money market funds), restricted cash, accounts receivable, accounts payable, leases, notes payable and certain accrued expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amount of these financial instruments materially approximate their fair values.
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