Core Scientific, Inc./tx
For the period ended Sep 30, 2025. Filed Oct 24, 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.
Sep 30, 2025 · Filed Oct 24, 2025
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8 — Fair Value Measurements
- FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
During the three and nine months ended September 30, 2025, a decrease in fair value of contingent value rights of $0.8 million and $1.7 million, respectively, was included in Change in fair value of warrant and contingent value rights on the Company’s Condensed Consolidated Statements of Operations.
During the three and nine months ended September 30, 2025, an increase in fair value of Warrants of $75.6 million and $365.0 million, respectively, was included in Change in fair value of warrant and contingent value rights on the Company’s Condensed Consolidated Statements of Operations.
The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $449,911 | $— | $— | $449,911 |
| Digital assets | 241,355 | — | — | 241,355 |
| Total assets measured at fair value on a recurring basis | $691,266 | $— | $— | $691,266 |
| Liabilities: | ||||
| Contingent value rights1 | $2,589 | $— | $— | $2,589 |
| Warrants | 1,330,483 | — | — | 1,330,483 |
| Total liabilities measured at fair value on a recurring basis | $1,333,072 | $— | $— | $1,333,072 |
1 The fair value of contingent value rights is included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets, based on the expected timing of settlement.
The following presents the levels of the fair value hierarchy for the Company's assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $832,213 | $— | $— | $832,213 |
| Digital assets | 23,893 | — | — | 23,893 |
| Total assets measured at fair value on a recurring basis | $856,106 | $— | $— | $856,106 |
| Liabilities: | ||||
| Contingent value rights1 | $4,272 | $— | $— | $4,272 |
| Warrants | 1,097,285 | — | — | 1,097,285 |
| Total liabilities measured at fair value on a recurring basis | $1,101,557 | $— | $— | $1,101,557 |
1 The fair value of contingent value rights is included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets, based on the expected timing of settlement.
Financial Instruments Not Carried at Fair Value
The Convertible Notes are recorded at amortized cost in the condensed consolidated balance sheets. The fair value is disclosed for informational purposes only in accordance with ASC Topic 825-10, Financial Instruments, and is determined using trading activity in over-the-counter markets. The following tables present the carrying amounts and estimated fair values of the Convertible Notes as of September 30, 2025 and December 31, 2024 (in thousands):
September 30, 2025
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 3.00% Convertible Senior Notes due 2029 | $460,000 | $826,582 | Level 1 |
| 0.00% Convertible Senior Notes due 2031 | $625,000 | $701,493 | Level 1 |
December 31, 2024
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 3.00% Convertible Senior Notes due 2029 | $460,000 | $703,100 | Level 1 |
| 0.00% Convertible Senior Notes due 2031 | $625,000 | $615,800 | Level 1 |
Nonrecurring Fair Value Measurements
The Company’s non-financial assets, including property, plant and equipment, are measured at estimated fair value on a nonrecurring basis and are adjusted only upon impairment or when held for sale. During the nine months ended September 30, 2025, the Company did not recognize any impairment or other fair value adjustments related to non-financial assets measured at fair value on a nonrecurring basis.
No non-financial assets were classified as Level 3 as of September 30, 2025 or December 31, 2024.
The Company’s financial instruments, that are not subject to recurring fair value measurements, include cash and cash equivalents (other than money market funds), restricted cash, accounts receivable, accounts payable, leases, notes payable and certain accrued expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amount of these financial instruments materially approximate their fair values.
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