Core Scientific Inc., a Nasdaq-listed Bitcoin mining firm, reported a net profit of $580 million for the first quarter of 2025, more than doubling its $210 million net income from the same period last year. However, its total revenue for Q1 2025 reached $79.5 million, falling short of analysts’ estimates by 8.11% and dropping significantly from $179.3 million in Q1 2024.
The revenue decline was driven by reduced Bitcoin (BTC) mining yields following the April 2024 halving, which cut mining rewards from 6.25 BTC to 3.125 BTC. Additionally, Core Scientific completed a strategic shift toward high-performance computing (HPC) hosting, mainly catering to the artificial intelligence (AI) sector. Notably, a $1.2 billion data center expansion deal was signed in February with AI startup CoreWeave. The company expects its annualized colocation revenue to reach $360 million by 2026 as a result of this shift.
Although mining profits dropped, Core Scientific’s performance benefited from a 74% increase in average Bitcoin prices and a 33% reduction in power costs. Shares briefly dipped 1% on trading day close but recovered over 3% after hours.
The report also notes a broader industry trend: companies like Riot Platforms, Hive Digital, Hut 8, Iris Energy, and TeraWulf are moving part of their mining operations toward AI and HPC to capture new profit streams. Research from VanEck suggests that if the industry reallocates 20% of energy capacity to AI/HPC by 2027, additional annual profits could rise by $13.9 billion over 13 years.