Core Scientific Inc., a prominent player in the Bitcoin mining industry, announced a net profit of $580 million for the first quarter of 2025, marking a considerable increase from the $210 million recorded during the same period last year.
Despite this profit surge, the company fell short of revenue expectations, attributing the decline to decreasing mining yields and a strategic shift in its operations.
In a statement released on May 7, Core Scientific reported total revenue for Q1 at $79.5 million, which was more than 8% below analysts’ forecasts by Zacks. This figure represents a notable drop from the $179.3 million generated in the previous year’s first quarter.
Core Scientific’s Q1 Revenue Driven by Self-Mining
The majority of the company’s revenue in Q1 was derived from self-mining operations, totaling $67.2 million. Hosted mining and colocation services contributed $3.8 million and $8.6 million, respectively.
This revenue decline follows the Bitcoin halving event in April 2024, which reduced block rewards from 6.25 BTC to 3.125 BTC, thereby impacting income from mining activities. Additionally, Core Scientific is undergoing a transition towards high-performance computing (HPC), particularly focusing on artificial intelligence (AI) applications, which has also influenced revenue streams.
Nevertheless, some losses were counterbalanced by favorable market trends. The average price of Bitcoin surged by 74% during the quarter, and the company benefited from a 33% reduction in power expenses attributed to lower energy costs and enhanced operational efficiencies.
Core Scientific is focusing on a future growth trajectory that includes a shift toward AI-oriented infrastructure. In a significant move, the company signed a $1.2 billion deal with AI specialist CoreWeave to augment its data center capacity, a development expected to boost colocation revenues significantly, with forecasts suggesting an annualized total 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
— Core Scientific (@Core_Scientific) May 7, 2025
CEO Adam Sullivan referred to Q1 as an “inflection point” for Core Scientific, highlighting the company’s strategic positioning within the rapidly evolving field of high-performance data services. “We’re at the center of one of the most important shifts in modern computing,” Sullivan stated in the earnings announcement.
On May 7, shares of Core Scientific (CORZ) saw a slight decline of 1%, closing at $8.90, but rebounded to $9.24 in after-hours trading.
The trend toward HPC is gaining traction within the cryptocurrency mining landscape, with other firms such as Hive Digital, Hut 8, Iris Energy, and TeraWulf similarly reallocating their resources to support AI-driven infrastructure, indicating a significant transformation in digital asset operations.
Bitcoin Mining’s Sustainability Efforts Increase
A recent report from Cambridge University indicates that 52.4% of Bitcoin mining is now powered by sustainable energy, a significant rise from 37.6% reported in 2022. The study reveals that 42.6% of this sustainable energy is derived from renewable sources such as wind and hydropower, with an additional 9.8% coming from nuclear energy.
In a shift in energy sources, natural gas has surpassed coal as the primary energy contributor to Bitcoin mining, with its usage climbing to 38.2%, up from 25% in 2022. The reliance on coal, on the other hand, has diminished dramatically, plummeting to 8.9% from 36.6%.
Following China’s crackdown on the cryptocurrency sector in 2021, the United States has emerged as a dominant player in Bitcoin mining, bolstered by affordable electricity and robust capital markets. The initial optimism for growth was further fueled by the election of a pro-crypto president, Donald Trump.
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