Filing Details

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No.    )*

Core Scientific, Inc.

(Name of Issuer)

Common Stock

(Title of Class of Securities)

21873J108

(CUSIP Number)

David Maryles

Managing Director, Legal and Compliance

BlackRock, Inc.

55 East 52nd Street

New York, NY 10055

(212) 810-5300

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

December 22, 2022

(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ☐

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

CUSIP No. 21873J108

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Item 1. Security and Issuer.

This Schedule 13D (this Schedule 13D) relates to the common stock, par value $0.0001 per share (the Common Stock), of Core Scientific, Inc., a Delaware corporation (the Issuer). The principal executive offices of the Issuer are located at 210 Barton Springs Road, Suite 300, Austin, Texas 78704.

Item 2. Identity and Background.

(a) This Schedule 13D is being filed by BlackRock, Inc. (BlackRock). BlackRock is a Delaware corporation that, through its subsidiaries, provides diversified investment management directly and indirectly through various investment products to institutions, intermediaries and individual investors. Investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. BlackRock, through its subsidiaries (each an Advisory Subsidiary and collectively the Advisory Subsidiaries), offers its investment products in a variety of accounts, including open-end and closed-end mutual funds, iShares^® exchange-traded funds, collective investment trusts and separate accounts. In addition, the Advisory Subsidiaries provide market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. The principal office and business address of BlackRock is 55 East 52nd Street, New York, NY 10055.

BlackRock did not acquire beneficial ownership of any securities of the Issuer with the purpose or effect of changing or influencing the control of the Issuer or as a participant in any transaction having such purpose or effect, or in connection with any plan or proposal that would be subject to disclosure under Item 4 of Schedule 13D with respect to the Issuer. The Advisory Subsidiaries, as the investment advisers to certain client accounts, continue to hold Common Stock in their ordinary course of business, not with the purpose or effect of changing or influencing the control of the Issuer or as a participant in any transaction having such purpose or effect, and not in connection with any plan or proposal that would be subject to disclosure under Item 4 of Schedule 13D with respect to the Issuer. However, BlackRock is filing this Schedule 13D because certain of its affiliates have taken actions described in Item 4 below.

(b) (c) and (f) Current information concerning the identity and background of each of the executive officers and directors of BlackRock, as well as applicable additional information called for by Items 3 through 6, is set forth on Annex A (collectively, the Covered Persons), attached hereto and incorporated herein by reference.

(d) and (e) During the last five years, neither BlackRock, nor to the best of its knowledge, any Covered Person has been convicted in any criminal proceedings (excluding traffic violations or similar misdemeanors) or has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of which such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Neither the present filing nor anything contained herein shall be construed as an admission that BlackRock constitutes a person for any purposes other than Section 13(d) of the Exchange Act.

Item 3. Source and Amount of Funds or Other Consideration.

As of December 28, 2022, BlackRock, in its role as the parent of the Advisory Subsidiaries in the capacity as investment advisers to certain client accounts, held beneficial ownership of 4,737,778 shares of Common Stock that are issuable upon conversion of approximately $37.9 million in aggregate principal amount of secured convertible notes acquired for an aggregate purchase price of approximately $35 million. Such acquisitions were made for investment purposes with available funds of the applicable client accounts in the ordinary course of business of the Advisory Subsidiaries.

Transactions made for investment purposes in the ordinary course of business of the Advisory Subsidiaries are undertaken solely for the benefit of the applicable client account and, other than with respect to the Managed Funds (as defined below), are independent from the matters described in Item 4 below. See Annex A for applicable information regarding Covered Persons.

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Item 4. Purpose of Transaction.

All of the Common Stock of the Issuer reported on this Schedule 13D was acquired in the ordinary course of business for investment purposes by funds and accounts for which certain of the Advisory Subsidiaries act as investment advisers.

In connection with the filing by the Issuer and certain of its affiliates (collectively, the Debtors) of voluntary petitions (the Chapter 11 Cases) in the United States Bankruptcy Court for the Southern District of Texas (the Bankruptcy Court) seeking relief under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code), the Debtors entered into a Senior Secured Super-Priority Debtor-in-Possession Loan and Security Agreement, dated as of December 22, 2022 (the DIP Credit Agreement), with Wilmington Savings Fund Society, FSB, as administrative agent (the Administrative Agent), and the lenders from time to time party thereto (collectively, the DIP Lenders), which DIP Lenders include certain funds and accounts managed by subsidiaries of BlackRock that hold secured convertible notes of the Issuer (such funds and accounts managed by subsidiaries of BlackRock, collectively, the Managed Funds).

Pursuant to the terms of the DIP Credit Agreement, the DIP Lenders provided new financing commitments to the Issuer under a new money multiple draw term loan facility (the New Money DIP Facility) in an initial aggregate principal amount of up to $75 million, approximately $57 million of which was committed to by the initial DIP Lenders, including $17 million from the Managed Funds. Under the New Money DIP Facility, (i) $37.5 million will be available following Bankruptcy Court approval on an interim basis (the Interim DIP Order), and (ii) up to $37.5 million will be available following Bankruptcy Court approval on a final basis (the Final DIP Order), subject to obtaining commitments for the full amount of the New Money DIP Facility.

The DIP Credit Agreement provides for a credit facility pursuant to which up to $75 million of aggregate claims of the holders of the Issuers secured convertible notes who are DIP Lenders (or affiliates, partners or investors of the DIP Lenders) will, upon entry of the Final DIP Order, automatically be deemed substituted and exchanged for, and converted, into (such conversion, the Roll Up) debtor-in-possession loans (the Roll Up Loans) (such credit facility, together with the New Money DIP Facility, the DIP Facility) on a cashless dollar for dollar basis, in each case, in accordance with and subject to the terms and conditions in the DIP Credit Agreement.

Borrowings under the New Money DIP Facility will bear interest at a rate of 10% which, together with certain fees payable in connection with the DIP Facility, will be payable in kind. Roll Up Loans will not bear interest. The DIP Lenders will receive upfront commitment fees equal to 2% of the aggregate commitments under the New Money DIP Facility when drawn, payable in kind, and exit fees equal to (i) in the case of an acceptable exit roll transaction, (x) 3% of the accreted outstanding principal amount of the New Money Loans at such time, and (y) 2% of the outstanding principal amount of the Roll Up Loans as set forth in the DIP Credit Agreement, or (ii) otherwise (x) 15% of the accreted outstanding principal amount of the New Money Loans at such time and (y) 2% of the outstanding principal amount of the Roll Up Loans at such time as set forth in the DIP Credit Agreement. The DIP Credit Agreement includes milestones, representations and warranties, covenants applicable to the Debtors, and events of default. If an event of default under the DIP Credit Agreement occurs, the Administrative Agent may, among other things, permanently reduce any remaining commitments and declare the outstanding obligations under the DIP Credit Agreement to be immediately due and payable.

The DIP Credit Agreement has a maturity date of June 21, 2023, which can be extended, under certain conditions, by an additional three months to September 21, 2023. The DIP Credit Agreement will also terminate on the date that is the earliest of the following (i) January 25, 2023, if no Final DIP Order is entered (or such later date as may be agreed in writing by the Required Lenders (as defined in the DIP Credit Agreement)), (ii) the maturity date, (ii) the date of consummation of any transaction pursuant to which all or substantially all of the assets of the Issuer and the other credit parties will be sold, transferred or otherwise disposed, (iii) the effective date of a plan in the Chapter 11 Cases, and (iv) the date on which all amounts owed thereunder become due and payable and the commitments are terminated.

The foregoing description of the DIP Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the DIP Credit Agreement, which is filed as Exhibit 1 to this Schedule 13D and is incorporated by reference herein.

On December 22, 2022, the Managed Funds also entered into a Restructuring Support Agreement (the Support Agreement), with the Issuer and certain other holders of (x) the Issuers secured convertible notes and/or (y) DIP Commitments (as defined in the Support Agreement) or loans under the DIP Facility (the Consenting Creditors), pursuant to which, among other things, the Consenting Creditors agreed, for the duration of the Support Period (as defined in the Support Agreement), to vote in favor a joint plan of reorganization (the Plan) of the Debtors under the Bankruptcy Code and not to take certain other actions, including those that would reasonably be expected to prevent, interfere with, delay or impede the consummation of the Plan and the restructuring contemplated by the Support Agreement.

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The Support Agreement, together with the restructuring term sheet included therein, and Plan contemplate, among other things:

The Support Agreement also contemplates the following milestones with respect to the Chapter 11 Cases:

During the Support Period, the Consenting Creditors, including the Managed Funds, have agreed not to Transfer (as defined in the Support Agreement), directly or indirectly, in whole or in part, any of their Claims (as defined in the Support Agreement), including granting any proxies, depositing any Claims into a voting trust or entering into a voting agreement with respect to any such Claims, unless the transferee thereof is a Consenting Creditor or, prior to such Transfer, the transferee agrees to become a Consenting Creditor by entering into a joinder to the Support Agreement.

Under the terms of the Support Agreement, the Requisite Consenting Creditors (as defined in the Support Agreement) have the right to designate four out of the five members of the initial board of directors of the Reorganized Debtors (as defined in the Support Agreement). In addition, the Support Agreement contemplates that the Reorganized Debtors will enter into one or more registration rights agreements with the holders of (i) Prepetition Secured Convertible Notes Claims (as defined in the Support Agreement) who receive New Common Shares, and (ii) holders of DIP Claims (as defined in the Support Agreement) who receive DIP Warrants (as defined in the Support Agreement), which registration rights agreements shall include (a) demand registration rights for a holder or holders who hold an aggregate of more than 5% of the equity of the Reorganized Debtors (on a diluted basis treating the DIP Warrants as if exercised), such demand to be exercisable up to 2 times per year, subject to minimum expected proceeds of $5 million and (b) piggyback registration rights for all holders of New Common Stock or DIP Warrants that are party to the registration rights agreement. Pursuant to the Support Agreement, the Reorganized Debtors have agreed to take the steps necessary to continue to be a public company that is listed on the Nasdaq or the NYSE on or as soon as reasonable practicable after the Effective Date.

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The foregoing description of the Support Agreement and the transactions and documents contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the Support Agreement as filed as Exhibit 2 hereto and incorporated by reference herein.

As a result of the foregoing, BlackRock may be deemed to have formed a group, as such term is used in Regulation 13D under the Act with the other parties to the Support Agreement and the DIP Credit Agreement who beneficially own shares of the Issuers Common Stock. BlackRock disclaims any membership or participation in a group with such other parties to the Support Agreement and the DIP Credit Agreement or their affiliates and further disclaims beneficial ownership of any shares of Common Stock beneficially owned by any such parties or their affiliates, including approximately 16 million shares of Common Stock believed to be beneficially owned by funds and accounts managed or advised by Gullane Capital LLC or its affiliates on the date hereof.

Except as set forth in this Schedule 13D and in the Support Agreement, the activities described herein will not restrict BlackRocks Advisory Subsidiaries exercise of investment or voting power with respect to the Common Stock to which this Schedule 13D relates. Except as set forth in this Schedule 13D, BlackRock has no present plans or proposals that relate to or would result in any of the actions described in Item 4(a) through (j) of Schedule 13D. Each of BlackRocks Advisory Subsidiaries may evaluate on a continuing basis its client accounts investment in the Issuer and BlackRock expects that such Advisory Subsidiaries may, subject to the terms of the Support Agreement where applicable, from time to time acquire or dispose of Common Stock or other securities of the Issuer on behalf of such client accounts. Any acquisitions or dispositions will depend upon (i) the price and availability of the Issuers securities; (ii) subsequent developments concerning the Issuers business and prospects and the industry in which the Issuer operates; (iii) BlackRocks Advisory Subsidiaries general investment policies with respect to the applicable accounts managed by BlackRocks Advisory Subsidiaries; (iv) other investment and business opportunities available to BlackRocks Advisory Subsidiaries on behalf of their clients; (v) general market and economic conditions; (vi) tax considerations; and (vii) such other factors as BlackRocks Advisory Subsidiaries may consider relevant. Any such acquisitions or dispositions may be made, subject to applicable law, in open market transactions or privately negotiated transactions.

See Annex A for applicable information regarding Covered Persons.

Item 5. Interest in Securities of the Issuer.

(a) and (b) The responses of BlackRock to Rows (7) through (11), and (13) of the cover page of this Schedule 13D are incorporated herein by reference. See Annex A for applicable information regarding Covered Persons. In addition, pursuant to Section 13(d)(3) of the Exchange Act, BlackRock and the other parties to the Support Agreement and the DIP Credit Agreement who beneficially own shares of the Issuers Common Stock may, on the basis of the facts described elsewhere in this Schedule 13D, be considered to be a group. BlackRock disclaims any membership or participation in a group with such other parties to the Support Agreement and the DIP Credit Agreement or their affiliates and further disclaims beneficial ownership of any shares of Common Stock beneficially owned by such parties or their affiliates, including approximately 16 million shares of Common Stock believed to be beneficially owned by funds and accounts managed or advised by Gullane Capital LLC or its affiliates on the date hereof.

The aggregate percentage of shares of Common Stock reported as beneficially owned by BlackRock was calculated based on 374,527,988 shares of Common Stock issued and outstanding as of November 14, 2022, as disclosed in the Issuers Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2022 filed with the U.S. Securities and Exchange Commission on November 22, 2022.

The Common Stock beneficially owned by BlackRock includes Common Stock beneficially owned by its Advisory Subsidiary, BlackRock Financial Management, Inc.

(c) Annex B, attached hereto, sets forth transactions in the Common Stock that were effected during the 60-day period ended December 28, 2022. The transactions in the Common Stock described on Annex B were effected on securities exchanges unless otherwise indicated therein.

(d) Except for investment advisory clients of the Advisory Subsidiaries, who may have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, Common Stock, no other person is known by BlackRock to have the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, any Common Stock that may be beneficially owned by BlackRock.

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(e) Not applicable.

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

The information set forth in Item 4 is hereby incorporated herein by reference.

In August 2021, the Managed Funds entered into a secured convertible note purchase agreement with the Issuer and the other investors thereunder pursuant to which the Issuer issued $299.8 million of convertible notes in August through November 2021, including approximately $35 million to such Managed Funds, which notes became secured notes upon consummation of the business combination transaction in January 2022. The secured convertible notes have a minimum payoff based on the face value plus accrued interest and are secured by a lien on the same collateral securing the $215 million of secured convertible notes issued by the Issuer in April 2021. The secured convertible notes have a maturity date of April 2025 and bear interest at a rate of 10% per annum, of which 4% is payable in cash and 6% is payable in kind. The convertible notes are convertible into shares of Common Stock at the option of the holder at a conversion price equal to $8.00 per share. As of December 28, 2022, after giving effect to the receipt by the Managed Funds of the interest payable in kind on such secured convertible notes through such date, the Managed Funds held approximately $37.9 million in aggregate principal amount of secured convertible notes. The foregoing description of the secured convertible note purchase agreement in this Item 6 do not purport to be complete and is qualified in its entirety by reference to the Convertible Note Purchase Agreement, as amended, and the form of Convertible Promissory Note as filed as Exhibits 3 through 5 hereto and incorporated by reference herein.

Except as set forth in this Schedule 13D and in the Support Agreement, there are no contracts, arrangements, understandings or relationships between BlackRock and any other person with respect to any securities of the Issuer or among the Advisory Subsidiaries, including but not limited to transfer or voting of any securities of the Issuer, finders fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, division of profits or loss, or the giving or withholding of proxies (other than the transfer of voting rights with respect to shares of Common Stock that are loaned out in the ordinary course of BlackRocks and its subsidiaries securities lending programs).

Item 7. Materials to Be Filed as Exhibits.

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SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: December 29, 2022

Annex A

The following is a list of the executive officers and directors of BlackRock, Inc. (collectively, the Covered Persons), setting forth the present principal occupation or employment and the name, principal business and address of any corporation or other organization in which such employment is conducted and citizenship for each such person. Each Covered Person is a citizen of the United States, unless otherwise noted, and does not have any other principal occupation (outside of similar positions held with respect to other entities directly or indirectly managed or advised by BlackRock).

Executive Officers

A-1

Directors

A-2

A-3

Annex B

Transactions in Common Stock

(60-day period ended December 28, 2022)

B-1

B-2

B-3

B-4

B-5

B-6

B-7

B-8

B-9

B-10

B-11

B-12

B-13

B-14

B-15

B-16