Core Scientific Inc., a Nasdaq-listed Bitcoin mining company, recently released its first-quarter results for 2025, showcasing a net profit of $580 million. Despite this impressive figure, the company fell short of analyst revenue estimates due to a decrease in mining profits.

The Q1 results, disclosed on May 7, revealed that Core Scientific more than doubled its net income from the same period in the previous year, reaching $210 million. However, its total revenue of $79.5 million missed estimates by 8.11%, declining from $179.3 million in Q1 2024.

The company's revenue sources were primarily from $67.2 million in self-mining revenue, $3.8 million in hosted mining revenue, and $8.6 million in colocation revenue, previously categorized as high-performance computing (HPC) hosting.

Core Scientific attributed the drop in Bitcoin mined and revenue to the halving event on April 20, 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC. Additionally, the company underwent an operational shift towards HPC hosting, largely utilized for artificial intelligence applications.

Despite these challenges, Core Scientific experienced some positive offsets, including a 74% increase in the average price of Bitcoin and a 33% decrease in power costs due to lower rates and usage.

The company's strategic move towards HPC hosting was exemplified by a $1.2 billion data center expansion deal with AI startup CoreWeave in February. This partnership positions Core Scientific to anticipate an annualized colocation revenue of $360 million by the beginning of 2026.

Adam Sullivan, CEO of Core Scientific, described the first quarter as an "inflection point," highlighting the company's pivotal positioning at the forefront of the evolving landscape of high-performance data infrastructure driven by the increasing demand for AI capabilities.

Following the announcement of its financial results, shares in Core Scientific (CORZ) initially closed trading on May 7 at $8.90, representing a 1% decrease. However, after-hours trading saw a 3% increase, with the stock trading at $9.24.

Looking ahead, asset manager VanEck projected that if publicly traded Bitcoin mining firms allocate 20% of their energy capacity to AI and HPC by 2027, they could potentially generate an additional $13.9 billion in yearly profits over the next 13 years. This strategic shift towards AI and HPC was also

Source: https://cointelegraph.com/news/core-scientific-misses-q1-revenue-posts-580-million-q1-profit?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound