Form 4: Core Scientific Director Patten Receives Stock Grants

Director Jarrod M Patten receives restricted stock units from Core Scientific, Inc.

Summary

• Jarrod M Patten, a director at Core Scientific, Inc., received two grants of restricted stock units (RSUs) on May 27, 2024.
• The first grant consists of 127,446 RSUs, vesting fully on January 23, 2027, contingent upon continued service as a non-employee director.
• The second grant comprises 47,793 RSUs, vesting fully on January 23, 2025, also contingent upon continued service as a non-employee director.
• Following these transactions, Patten directly owns 275,239 shares of Core Scientific, Inc. common stock.

Sentiment

Score: 6

Explanation: The document itself is neutral, simply reporting a transaction. The sentiment is slightly positive as it indicates continued alignment of the director with the company's success.

Positives

• The RSU grants align the director's interests with the long-term performance of the company.
• The vesting schedules incentivize continued service and commitment from the director.

Risks

• The value of the RSUs is subject to the market price of Core Scientific's stock, which can fluctuate.
• Failure to continue service as a non-employee director would result in forfeiture of the unvested RSUs.

Future Outlook

The document does not contain any specific forward-looking statements regarding the company's future performance, only the vesting schedule of the RSUs.

Industry Context

Stock grants to directors are a common practice in publicly traded companies to align their interests with those of shareholders and incentivize long-term value creation. This is especially common in growth-oriented sectors like technology and cryptocurrency mining, where Core Scientific operates.

Comparison to Industry Standards

• Stock grants to directors are a common practice across various industries, including technology and cryptocurrency mining.
• Companies like Marathon Digital Holdings (MARA) and Riot Platforms (RIOT), which are also involved in Bitcoin mining, often use stock-based compensation to attract and retain key personnel, including directors.
• The vesting schedules and amounts of RSUs granted to directors can vary widely depending on the company's size, performance, and compensation philosophy.

Stakeholder Impact

• The RSU grants could have a slightly positive impact on shareholder sentiment, as they align the director's interests with the company's long-term success.
• Employees may view the grants as a sign of confidence in the company's future.

Key Dates