Nasdaq-listed Bitcoin mining company Core Scientific Inc. reported a net profit of $580 million in its first quarter results; however, it missed revenue projections analysts set due to a decline in mining-related earnings.
Core Scientific’s net income more than doubled in the first quarter compared to the same period last year; however, its revenues fell below analysts’ expectations.
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, the company reported total revenue at $79.5 million, reflecting an 8.11% shortfall from Zacks analysts’ projections and a decline from the $179.3 million it posted in Q1 2024.
The firm generated its primary revenue through $67.2 million in self-mining activities, $3.8 million from hosted mining operations, and $8.6 million via colocation services, which they previously categorized as high-performance computing (HPC) hosting.
Core Scientific attributed a decline in Bitcoin mining output and revenue to the April 20, 2024, halving event, which reduced mining rewards from 6.25 BTC to 3.125 BTC. The company’s operational transition toward HPC hosting, primarily utilized for artificial intelligence, also influenced the decrease.
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, Core Scientific signed a $1.2 billion data center expansion agreement in February with AI startup CoreWeave. Consequently, Core Scientific anticipates annualized colocation revenue of $360 million as it enters 2026.
Turning Point for Miners Amid Transition to AI
CEO Adam Sullivan described Core Scientific’s first quarter as an “inflection point” in a statement, with the company positioning itself 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.
Google Finance reported that shares of Core Scientific (CORZ) closed 1% lower at $8.90 on May 7. However, they recorded a rise of over 3% in after-hours trading, bringing the share price to $9.24.
In a report published in August, asset manager VanEck estimated that publicly listed Bitcoin mining firms could generate an additional $13.9 billion in annual profits over a 13-year period if they redirected 20% of their energy capacity to AI and HPC operations by 2027.
Riot Platforms appointed three new directors to its board in February, including one with a background in transitioning Bitcoin mining assets to high-performance computing (HPC).
Hive Digital, Hut 8, and Iris Energy transitioned portions of their operations to HPC and AI last year, while TeraWulf sold a $92 million stake in a Bitcoin mining facility in October, allocating the funds for AI hosting and the development of HPC data centers.
