Core Scientific, Inc./tx
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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, 2026 · Filed May 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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3 — Property, Plant, and Equipment
- PROPERTY, PLANT, AND EQUIPMENT
Property, plant and equipment, net as of March 31, 2026 and December 31, 2025 consist of the following (in thousands):
| March 31, 2026 | December 31, 2025 | Estimated Useful Lives | |
|---|---|---|---|
| Land and improvements1 | $74,906 | $21,769 | 20 years |
| Building and improvements | 295,367 | 275,186 | 10 to 39 years |
| Mining equipment | 314,357 | 393,623 | 3 years |
| Electrical and mechanical equipment | 91,015 | 80,384 | 15 years |
| Other property, plant and equipment | 16,178 | 18,164 | 5 to 7 years |
| Total | 791,823 | 789,126 | |
| Less: accumulated depreciation and amortization | 372,193 | 406,893 | |
| Total | 419,630 | 382,233 | |
| Add: Construction in progress | 925,294 | 911,066 | |
| $1,344,924 | $1,293,299 |
1 Estimated useful life of improvements. Land is not depreciated.
Depreciation expense for thethree months ended March 31, 2026 and 2025 was$16.4 million and $19.5 million, respectively.
During thethree months ended March 31, 2026 and 2025,$140.5 million and$1.6 million, respectively, of construction in
progress was placed into service.
As of March 31, 2026 and December 31, 2025, property, plant and equipment, net being leased to customers consisted of the
following (in thousands):
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| Land and improvements | $63,809 | $5,546 |
| Building and improvements | 261,208 | 146,082 |
| Electrical and mechanical equipment | 41,735 | 19,146 |
| Other property, plant and equipment | 224 | 226 |
| Total | 366,976 | 171,000 |
| Less: accumulated depreciation and amortization | 11,502 | 9,856 |
| Property, plant and equipment, net leased to customers | $355,475 | $161,144 |
Depreciation expense for assets leased to customers for thethree months ended March 31, 2026, was$2.6 million. There were
no assets leased to customer for thethree months ended March 31, 2025.
During the three months ended March 31, 2026, the Company identified indicators of impairment of its mining equipment and
mining infrastructure asset groups, including sustained declines in bitcoin prices, declines in bitcoin hashprice, and significant
decreases in secondary market values for digital asset mining equipment. As a result, the Company performed a recoverability
assessment of its mining-related asset groups in accordance with ASC Topic 360-10. The undiscounted future cash flows foreach
asset group was less than its carrying amount, indicating the assets were not recoverable.
The Company measured the fair value of its mining equipment using a market approach based on observable secondary market
pricing data for similar assets. The Company measured the fair value of its mining infrastructure assets using an income approach
based on a discounted cash flow analysis reflecting theestimated future cash flows a market participant would expect from operating
the assets as mining hosting facilities.
During thethree months ended March 31, 2026, the Company recognized impairment charges of$266.5 million, consisting of
$151.6 million related to mining equipment and$114.9 million related to mining infrastructure, which are included in Impairment of
property, plant and equipment in the condensed consolidated statements of operations. No impairment charges were recognized during
thethree months ended March 31, 2025.
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