Article Summary
Bitcoin mining company Core Scientific Inc. reported a first-quarter net profit of $580 million for 2025, but missed revenue expectations. Total revenue for Q1 reached $79.5 million, a significant decline from $179.3 million during the same period last year. The revenue shortfall follows the Bitcoin halving and the company’s transition toward high-performance computing (HPC) hosting for AI applications.
Original Post
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.
Core Scientific’s Q1 Revenue Dominated by Self-Mining at $67.2M
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.
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.
What This Means for You
- Be cautious when investing in crypto mining companies that are transitioning their business strategy.
- Stay informed about the increasing sustainability in Bitcoin mining and its potential impact on the industry.
- Consider the growth potential of companies that invest in AI and high-performance computing.
Key Terms
- Bitcoin Halving
- High-Performance Computing (HPC)
- Colocation
- Block Rewards
- Artificial Intelligence Infrastructure
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