Core Scientific Posts $580M Q1 Profit, Misses Revenue Estimates

Bitcoin mining company Core Scientific Inc. reported a first-quarter net profit of $580 million for 2025, a sharp increase from $210 million a year earlier.

However, the firm missed revenue expectations, as income dropped amid declining mining yields and a shift in business strategy.

According to the company’s May 7 earnings release, total revenue for Q1 reached $79.5 million, falling short of Zacks analyst estimates by over 8%.

This marked a significant decline from the $179.3 million Core Scientific posted during the same period last year.

The bulk of its earnings came from $67.2 million in self-mining revenue, while hosted mining and colocation contributed $3.8 million and $8.6 million, respectively.

The revenue shortfall follows the April 2024 Bitcoin halving, which cut block rewards from 6.25 BTC to 3.125 BTC, effectively reducing mining income.

Core Scientific also cited its ongoing operational transition toward high-performance computing (HPC) hosting—especially for artificial intelligence applications—as a contributing factor to the revenue dip.

Still, some losses were mitigated by favorable market conditions. Bitcoin’s average price rose 74% during the quarter, and the firm benefited from a 33% reduction in power costs due to lower energy rates and improved efficiency.

A key part of Core Scientific’s future growth strategy is its pivot to AI-focused infrastructure.

In February, the company secured a $1.2 billion agreement with AI firm CoreWeave to expand data center capacity. This move is expected to significantly bolster colocation revenue, with projections pointing to an annualized figure of $360 million by 2026.

Core Scientific has announced its First Quarter 2025 Results!

– On track to deliver 250MW of billable capacity to CoreWeave by the end of this year and anticipate entering 2026 with annualized colocation revenue of approximately $360 million.
– First tranche of 8MW of billable… pic.twitter.com/cHt5xSA74Y

CEO Adam Sullivan called Q1 an “inflection point” for the company, emphasizing its strategic positioning within the rapidly growing demand for high-performance data services.

“We’re at the center of one of the most important shifts in modern computing,” Sullivan said in a statement.

Shares in Core Scientific (CORZ) closed down 1% at $8.90 on May 7 but rose to $9.24 in after-hours trading.

The shift to HPC is gaining momentum across the crypto mining sector. Companies like Hive Digital, Hut 8, Iris Energy, and TeraWulf have all begun reallocating mining resources toward AI infrastructure, signaling a broader trend reshaping the future of digital asset operations.

A recent study from Cambridge University shows that sustainable energy now powers 52.4% of Bitcoin mining, a significant increase from 37.6% reported in 2022.

According to the report, 42.6% of Bitcoin mining’s sustainable energy comes from renewables like wind and hydropower, while 9.8% is sourced from nuclear energy.

Natural gas has now overtaken coal as the largest energy contributor to Bitcoin mining, with usage rising to 38.2%, compared to 25% in 2022.

Coal’s share, meanwhile, has fallen sharply to 8.9% from 36.6%.

The United States became a global leader in Bitcoin mining following China’s 2021 crackdown on the crypto industry.

With cheap electricity and strong capital markets, American mining firms quickly gained dominance, and the election of pro-crypto President Donald Trump initially fueled optimism for continued growth.

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