Core Scientific, Inc./tx

1. ORGANIZATION AND DESCRIPTION OF BUSINESS

Core Scientific, Inc.(“Core Scientific” or the “Company”) is a leader in designing, building and operating large scale, purpose-

built data centers for high-density colocation (“HDC”) services. Core Scientific operates facilities for high-density colocation services

serving artificial intelligence-related (“AI”) workloads and is a premier provider of digital infrastructure, software solutions and

services to its third-party customers. The majority of the Company's revenue is derived from high-density colocation services, with the

remainder derived from earning digital assets for the Company's own account and from digital asset mining hosting services. The

Company is in the process of repurposing its remaining mining facilities to support its high-density colocation services business as

circumstances allow. Core Scientific’s facilities are located in Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North

Dakota (1), Oklahoma (1), and Texas (4).

The Company had historically focused on designing, building and operating digital infrastructure to engage in digital asset

mining for its own account and providing hosting solutions for third-party digital asset miners. In 2024, the Company announced its

first high-density colocation contract with CoreWeave, Inc. (“CoreWeave), a provider of high-performance computing ("HPC")

services.

Core Scientific operates inthree 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,” consistingof providing hosting services to third parties for digital asset mining.

The Company’s high-density colocation services provide space, power, cooling, facilities operations, security and other services

to third-party colocation customers to support workloads for machine learning and AI. Colocation segment revenue is concentrated

with a single customer; see Note 13 — Segment Reporting.

The Company’s digital asset hosted mining business provides a full suite of services to digital asset mining customers. The

Company provides deployment, monitoring, troubleshooting, optimization and maintenance of customers’ digital asset mining

equipment and provide necessary electrical power, repair and other infrastructure services necessary for customers to operate, maintain

and efficiently mine digital assets.