Bitcoin mining firm Core Scientific Inc. achieved a net profit of $580 million in its first quarter results, but it could not meet analysts’ revenue estimates after a drop in its mining profits.
On May 7, Core Scientific reported its Q1 2025 results, posting a net income of $210 million, more than double that of Q1 2024. However, total revenue fell to $79.5 million, missing Zacks analysts’ estimates by 8.11% and dropping sharply from $179.3 million in Q1 2024.
The Nasdaq-listed firm generates most of its revenue from self-mining, which brought in $67.2 million, followed by $8.6 million from colocation services and $3.8 million from hosted mining.
Core Scientific attributes its revenue decline to the April 20, 2024 Bitcoin halving, which reduced mining rewards from 6.25 BTC to 3.125 BTC, as well as its strategic shift toward high-performance computing (HPC) hosting, primarily used for artificial intelligence applications.
Last February, Core Scientific signed a $1.2 billion deal with AI startup CoreWeave to expand its data center infrastructure as part of its shift toward HPC hosting, expecting to enter 2026 with an annualized colocation revenue of $360 million.