Core Scientific, Inc./tx

14. SEGMENT REPORTING

The Company hasthree operating segments: Colocation, Digital Asset Self-Mining, and Digital Asset Hosted Mining.

The Colocation segment provides HDC services to customers employing AI and HPC workloads and 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 performs digital asset mining for the Company’s own account and generates revenue from operating owned digital infrastructure and computer equipment as part of mining pools in exchange for digital assets. The Digital Asset Hosted Mining segment provides hosting services to third parties for digital asset mining through consumption-based contracts.

The Company’s Chief Executive Officer is the CODM. The CODM uses gross profit to evaluate segment performance and allocate resources. Gross profit is used to evaluate actual results against expectations based on comparable prior results, current budget, and current forecast, and to inform decisions about 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; these items are presented in the reconciliation of segment gross profit to consolidated income (loss) before income taxes below.

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

(1)Other segment items consist primarily of software and IT costs, travel, professional and contract services, and telecommunications costs.

The following table presents a reconciliation of total reportable segment gross profit to consolidated income (loss) before income taxes included in the Company’s condensed consolidated statements of operations for theperiods indicated (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 September 30, 2026 and December 31, 2025, all of the Company’s fixed assets were located in the United States. For the three and nine months ended September 30, 2026 and 2025, all of the Company’s revenue was generated in the United States. For the three months ended September 30, 2026 and 2025,5% and 71%, respectively, of the Company’s total revenue was generated from one customer in the Digital Asset Self-Mining segment. For the nine months ended September 30, 2026 and 2025,12% and 78%, respectively, of the Company’s total revenue was generated from one customer in the Digital Asset Self-Mining segment. For the three months ended September 30, 2026 and 2025,93% and 18%, respectively, of the Company’s total revenue was generated from one customer in the Colocation segment. For the nine months ended September 30, 2026 and 2025,84% and 14%, respectively, of the Company’s total revenue was generated from one customer in the Colocation segment. As of September 30, 2026 and December 31, 2025, substantially all of the Company’s digital assets were held byone third-party digital asset service.