Core Scientific, Inc./tx

15. SEGMENT REPORTING

The Company’s operating segments are aggregated into reportable segments only if they exhibit similar economic

characteristics and have similar business activities.

The Company hasthree operating segments: “Colocation”, consisting of providing high-density colocation services to

customers employing AI and HPC related workloads. The Company’s Colocation operations met the criteria to be considered a new

segment during the second quarter of 2024. During fiscal year 2024, our “Colocation” segment was referred to as “HPC Hosting.”;

“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.

The following table presents revenue and gross profit by reportable segment for the periods presented (in thousands):

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

statements of operations for theyears ended December 31, 2025,2024 and 2023, is as follows (in thousands):

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 December 31, 2025 and December 31, 2024, all of the Company’s fixed

assets were located in the United States. For theyears ended December 31, 2025,2024 and 2023, all of the Company’s revenue was

generated in the United States. For theyears ended December 31, 2025,2024 and 2023,72%,80%, and 78%, respectively, of the

Company’s total revenue was generated from digital asset mining of bitcoin from one customer. As of December 31, 2025 and 2024,

substantially all of our digital assets were held byone third-party digital asset service.

For theyears ended December 31, 2025,2024 and 2023, the concentration of customers comprising 10% or more of the

Company’s Colocation, Digital Asset Self-Mining, and Digital Asset Hosted Mining segment revenue were as follows:

1 On the Effective Date, Customer F became a minority shareholder of the Company.