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.

Bitcoin Mining’s Sustainable Energy Usage Rises to 52%

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.

The post Core Scientific Posts $580M Q1 Profit, Misses Revenue Estimates appeared first on Cryptonews.

Nasdaq-listed Bitcoin mining firm Core Scientific Inc. posted a net profit of $580 million with its first quarter results, but missed analyst revenue estimates after a drop in its mining profits.

Core Scientific’s Q1 2025 results, shared on May 7, saw it more than double its $210 million net income from the year-ago quarter, while its total revenue reached $79.5 million, missing Zacks analysts’ estimates by 8.11%, and falling from its $179.3 million in revenues for Q1 2024. 

The firm’s primary source of revenue came from $67.2 million in self-mining revenue, $3.8 million in hosted mining revenue, and $8.6 million in colocation, formerly listed as high-performance computing (HPC) hosting.

Core Scientific said its drop in Bitcoin (BTC) mined and revenue was due to the halving on April 20, 2024, when mining rewards were cut from 6.25 BTC to 3.125 BTC, and its operational shift to HPC hosting, primarily used for artificial intelligence.

However, the losses were partially offset by a 74% increase in the average price of Bitcoin and a 33% decrease in power costs due to lower rates and usage. 

As part of its HPC hosting shift, Core Scientific inked a deal in February with AI startup CoreWeave for a $1.2 billion data center expansion. As a result, Core Scientific anticipates entering 2026 with annualized colocation revenue of $360 million.

Inflection point for miners in AI shift

Core Scientific CEO Adam Sullivan said in a statement that its first quarter was an “inflection point,” as the firm positioned itself at the “center of one of the most important shifts in modern computing,” as the demand for high-performance data infrastructure has accelerated.

Related: Robinhood beats Q1 estimates despite revenue, crypto trading dip

Shares in Core Scientific (CORZ) closed May 7 trading down 1%, falling to $8.90, according to Google Finance. However, they jumped over 3% to trade at $9.24 after the bell.

In an August report, asset manager VanEck estimated that if publicly traded Bitcoin mining companies shifted 20% of their energy capacity to AI and HPC by 2027, they could increase additional yearly profits by $13.9 billion over 13 years.

Riot Platforms appointed three new directors to its board in February, one of whom has experience converting Bitcoin mining assets toward HPC.

Hive Digital, Hut 8 and Iris Energy converted part of their operations to HPC and AI last year, and TeraWulf sold its stake in a Bitcoin mining facility for $92 million in October, with the proceeds marked for hosting AI and building HPC data centers. 

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