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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8 — Fair Value Measurements
- FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
During thethree months ended March 31, 2026 and 2025, a decrease of$1.0 million and an increase of$12.8 million, in fair
value of CVRs, respectively, was included in Change in fair value of warrants and contingent value rights in the Company’s
condensed consolidated statements of operations.
During thethree months ended March 31, 2026 and 2025, an increase of$31.8 million and a decrease of$634.3 million, in fair
value of Warrants, respectively, was included in Change in fair value of warrants and contingent value rights in 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 March 31, 2026 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $1,000,384 | $— | $— | $1,000,384 |
| Digital assets | 37,312 | — | — | 37,312 |
| Total assets measured at fair value on a recurring basis | $1,037,696 | $— | $— | $1,037,696 |
| Liabilities: | ||||
| Contingent value rights1 | $2,330 | $— | $— | $2,330 |
| Warrant liabilities, current portion | 844,752 | 844,752 | ||
| Warrant liabilities, net of current portion | 116,495 | — | — | 116,495 |
| Total liabilities measured at fair value on a recurring basis | $963,577 | $— | $— | $963,577 |
1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s 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, 2025 (in thousands):
| Fair Value Hierarchy | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Fair value | |
| Assets: | ||||
| Cash and cash equivalents | ||||
| Money market funds | $267,721 | $— | $— | $267,721 |
| Digital assets | 222,000 | — | — | 222,000 |
| Total assets measured at fair value on a recurring basis | $489,721 | $— | $— | $489,721 |
| Liabilities: | ||||
| Contingent value rights1 | $3,366 | $— | $— | $3,366 |
| Warrant liabilities, net of current portion | 936,107 | — | — | 936,107 |
| Total liabilities measured at fair value on a recurring basis | $939,473 | $— | $— | $939,473 |
1 The fair value of contingent value rights is included within Other current liabilities and Other noncurrent liabilities on the Company’s 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 March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 3.00% Convertible Senior Notes due 2029 | $460,000 | $738,262 | Level 1 |
| 0.00% Convertible Senior Notes due 2031 | $625,000 | $686,413 | Level 1 |
December 31, 2025
| Carrying Amount | Fair Value | Fair Value Hierarchy | |
|---|---|---|---|
| 3.00% Convertible Senior Notes due 2029 | $460,000 | $718,609 | Level 1 |
| 0.00% Convertible Senior Notes due 2031 | $625,000 | $657,735 | Level 1 |
Nonrecurring Fair Value Measurements
The Company measures certain non-financial assets at fair value on a nonrecurring basis when events or circumstances indicate
that the carrying amount may not be recoverable. During thethree months ended March 31, 2026, the Company measured the fair
value of its mining-related long-lived asset groups in connection with the impairment charges described in Note 3 — Property, Plant,
and Equipment.
The following table presents the fair value of assets measured on a nonrecurring basis during the three months ended March 31,
2026 (in thousands):
| Level 1 | Level 2 | Level 3 | Fair value | |
|---|---|---|---|---|
| Mining equipment | $— | $30,564 | $— | $30,564 |
| Mining infrastructure | $— | $— | $42,772 | $42,772 |
The fair value of mining equipment was determined using a market approach based on observable pricing from published
secondary market indices for digital asset mining hardware, classified as Level 2 within the fair value hierarchy.
The fair value of mining infrastructure was determined using an income approach based on a discounted cash flow analysis of a
hypothetical colocation hosting arrangement, classified as Level 3 within the fair value hierarchy. The following table presents the
significant unobservable inputs used in the Level 3 measurement:
| Significant Unobservable Input | Value |
|---|---|
| Discount rate | 15% - 18% |
| Hosting rate ($/kW) | $2.25 - $2.50 |
| Projection period | 10 years |
The Company’s financial instruments, which 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, debt and certain accrued
expenses and other liabilities. Except for the 2029 Convertible Notes and 2031 Convertible Notes, the carrying amounts of these
financial instruments materially approximate their fair values.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.