Core Scientific, Inc./txCORZ
Core Scientific, Inc./tx Segments Disclosure
15. 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 has three operating segments: “Colocation”, consisting of providing high-density colocation services to
customers employing AI and HPC related workloads. The Company’s Colocation operations met the criteria to be considered a new
segment during the second quarter of 2024. During fiscal year 2024, our “Colocation” segment was referred to as “HPC Hosting.”;
“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):
Year Ended December 31, | |||||
2025 | 2024 | 2023 | |||
(in thousands, except percentages) Colocation Segment | |||||
Colocation revenue: | |||||
License fees | $47,861 | $17,498 | $— | ||
Power fees passed through to customer | 15,914 | 6,807 | — | ||
Maintenance and other | 1,649 | 73 | — | ||
Total colocation revenue | 65,424 | 24,378 | — | ||
Cost of colocation services: | |||||
Power fees passed through to customer | 15,914 | 6,807 | — | ||
Depreciation expense | 1,065 | 3 | — | ||
Employee compensation | 7,208 | 2,514 | — | ||
Facility operations expense | 18,927 | 11,907 | — | ||
Other segment items | 2,565 | 478 | — | ||
Total cost of colocation services | 45,679 | 21,709 | — | ||
Colocation gross profit | $19,745 | $2,669 | $— | ||
Colocation gross margin | 30% | 11% | —% | ||
Digital Asset Self-Mining Segment | |||||
Digital asset self-mining revenue | $229,207 | $408,740 | $390,333 | ||
Cost of digital asset self-mining: | |||||
Power fees | 122,408 | 160,833 | 165,848 | ||
Depreciation expense | 65,565 | 108,499 | 88,628 | ||
Employee compensation | 18,530 | 26,129 | 16,853 | ||
Facility operations expense | 9,570 | 13,274 | 14,055 | ||
Other segment items | 2,795 | 5,600 | 6,312 | ||
Total cost of digital asset self-mining | 218,868 | 314,335 | $291,696 | ||
Digital Asset Self-Mining gross profit | $10,339 | $94,405 | $98,637 | ||
Digital Asset Self-Mining gross margin | 5% | 23% | 25% | ||
Digital Asset Hosted Mining Segment | |||||
Digital asset hosted mining revenue from customers | $24,388 | $77,554 | $112,067 | ||
Cost of digital asset hosted mining services: | |||||
Power fees | 12,597 | 35,408 | 62,366 | ||
Depreciation expense | 1,173 | 3,604 | 6,806 | ||
Employee compensation | 1,635 | 4,933 | 6,337 | ||
Facility operations expense | 904 | 2,765 | 5,285 | ||
Other segment items | 265 | 6,848 | 6,451 | ||
Total cost of digital asset hosted mining services | 16,574 | 53,558 | $87,245 | ||
Digital Asset Hosted Mining gross profit | $7,814 | $23,996 | $24,822 | ||
Digital Asset Hosted Mining gross margin | 32% | 31% | 22% | ||
Consolidated | |||||
Consolidated total revenue | $319,019 | $510,672 | $502,400 | ||
Consolidated cost of revenue | $281,121 | $389,602 | $378,941 | ||
Consolidated gross profit | $37,898 | $121,070 | $123,459 | ||
Consolidated gross margin | 12% | 24% | 25% | ||
A reconciliation of the reportable segment gross profit to loss before income taxes included in the Company’s consolidated
statements of operations for the years ended December 31, 2025, 2024 and 2023, is as follows (in thousands):
Year Ended December 31, | |||||
2025 | 2024 | 2023 | |||
Reportable segment gross profit | $37,898 | $121,070 | $123,459 | ||
Decrease in fair value of digital assets | 31,603 | 1,052 | — | ||
Gain from sale of digital assets | — | — | (3,893) | ||
Impairment of digital assets | — | — | 4,406 | ||
Decrease in fair value of energy derivatives | — | 2,757 | 3,918 | ||
Loss on disposal of property, plant and equipment | 9,680 | 4,210 | 1,956 | ||
Impairment of property, plant and equipment | 11,359 | 122,869 | — | ||
Colocation organizational and site startup costs | 48,249 | 13,734 | — | ||
Advisor fees | 23,372 | 4,822 | — | ||
Selling, general and administrative | 159,224 | 113,691 | 108,111 | ||
Operating (loss) income | (245,589) | (142,065) | 8,961 | ||
Non-operating expenses (income), net: | |||||
Loss (gain) on debt extinguishment | 1,933 | 487 | (20,065) | ||
Interest (income) expense, net | (3,277) | 37,070 | 86,238 | ||
Change in fair value of warrants and contingent value rights | 33,059 | 1,369,157 | — | ||
Reorganization items, net | — | (111,439) | 191,122 | ||
Loss on legal settlements | 10,690 | 2,070 | — | ||
Other non-operating expense (income), net | 39 | (2,395) | (2,530) | ||
Total non-operating expense, net | 42,444 | 1,294,950 | 254,765 | ||
Loss before income taxes | $(288,033) | $(1,437,015) | $(245,804) | ||
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 December 31, 2025 and December 31, 2024, all of the Company’s fixed
assets were located in the United States. For the years ended December 31, 2025, 2024 and 2023, all of the Company’s revenue was
generated in the United States. For the years ended December 31, 2025, 2024 and 2023, 72%, 80%, and 78%, respectively, of the
Company’s total revenue was generated from digital asset mining of bitcoin from one customer. As of December 31, 2025 and 2024,
substantially all of our digital assets were held by one third-party digital asset service.
For the years ended December 31, 2025, 2024 and 2023, the concentration of customers comprising 10% or more of the
Company’s Colocation, Digital Asset Self-Mining, and Digital Asset Hosted Mining segment revenue were as follows:
Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||
Percent of Colocation segment revenue: | Percent of Digital Asset Self-Mining segment revenue: | Percent of Digital Asset Hosted Mining segment revenue: | |||||||||||||||
Customer | |||||||||||||||||
F1 | N/A | N/A | N/A | N/A | N/A | N/A | 31% | 61% | 49% | ||||||||
G | N/A | N/A | N/A | 100% | 100% | 100% | N/A | N/A | N/A | ||||||||
H | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 21% | 15% | ||||||||
J | 100% | 100% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||
L | N/A | N/A | N/A | N/A | N/A | N/A | 65% | N/A | N/A | ||||||||
1 On the Effective Date, Customer F became a minority shareholder of the Company.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Apr 4, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.