A net profit of $580 million was reported by Nasdaq-listed Bitcoin mining company Core Scientific Inc. in its first quarter results; however, revenue projections set by analysts were not met due to a decline in mining-related earnings.
Core Scientific’s net income was more than doubled in the first quarter compared to the same period last year; however, its revenues were reported below the expectations set by analysts.
Core Scientific’s Q1 2025 results, released on May 7, revealed that its net income was more than doubled from the $210 million recorded in the same quarter last year. However, total revenue was reported at $79.5 million, reflecting an 8.11% shortfall from Zacks analysts’ projections and a decline from the $179.3 million posted in Q1 2024.
The primary revenue of the firm was generated through $67.2 million in self-mining activities, $3.8 million from hosted mining operations, and $8.6 million via colocation services, which were previously categorized as high-performance computing (HPC) hosting.
A decline in Bitcoin mining output and revenue was attributed by Core Scientific to the April 20, 2024 halving event, during which mining rewards were reduced from 6.25 BTC to 3.125 BTC. The decrease was also influenced by the company’s operational transition toward HPC hosting, which is primarily utilized for artificial intelligence.
However, a 74% rise in the average price of Bitcoin and a 33% reduction in power expenses—attributed to decreased rates and consumption—partially offset the losses.
As part of its transition to HPC hosting, a $1.2 billion data center expansion agreement was signed by Core Scientific in February with AI startup CoreWeave. Consequently, annualized colocation revenue of $360 million is anticipated by Core Scientific as it enters 2026.
Turning Point for Miners Amid Transition to AI
Core Scientific’s first quarter was described as an “inflection point” by CEO Adam Sullivan in a statement, with the company being positioned at the “center of one of the most important shifts in modern computing,” driven by the rapid acceleration in demand for high-performance data infrastructure.
Shares of Core Scientific (CORZ) were closed 1% lower at $8.90 on May 7, as reported by Google Finance. However, a rise of over 3% was recorded in after-hours trading, bringing the share price to $9.24.
In a report published in August, it was estimated by asset manager VanEck that an additional $13.9 billion in annual profits over a 13-year period could be generated if publicly listed Bitcoin mining firms redirected 20% of their energy capacity to AI and HPC operations by 2027.
Three new directors were appointed to the board of Riot Platforms in February, including one with a background in transitioning Bitcoin mining assets to high-performance computing (HPC).
Portions of their operations were transitioned to HPC and AI last year by Hive Digital, Hut 8, and Iris Energy, while a $92 million stake in a Bitcoin mining facility was sold by TeraWulf in October, with the funds allocated for AI hosting and the development of HPC data centers.
