Core Scientific, Inc./tx

13. 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; “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) income before income taxes included in the Company’s

condensed consolidated statements of operations for thethree months ended March 31, 2026 and 2025, 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 March 31, 2026 and December 31, 2025, all of the Company’s fixed assets

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

in the United States. For thethree 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 byone third-party digital asset

service.