Bitcoin mining company Core Scientific's net income surged 173% to $580.7 million in Q1 2025

Bitcoin mining company Core Scientific saw net income spike to $580.7 million in Q1 2025, more than doubling its profit from $210.7 million during the same period in 2024

Bitcoin mining company Core Scientific (Nasdaq: CORZ) saw net income soar to $580.7 million in the first quarter of 2025, more than doubling from the $210.7 million reported during the same period in 2024, the firm said in its latest earnings report on Thursday.

The surge in profit comes despite a steep decline in revenue. The company posted $79.5 million in total revenue for the quarter, down from $179.3 million in Q1 2024. Core Scientific also reported a $6.1 million loss in adjusted earnings before interest, taxes, and amortization, compared to an $88 million gain in the year-ago quarter.

Shares of Core Scientific were down 1% to trade at $8.60 ahead of market open.

The firm’s significant net profit last quarter was largely driven by a $621.5 million non-cash mark-to-market adjustment in the value of its warrants “required as a result of the significant quarter-over-quarter decrease in our share price,” the firm said.

“This quarter marks an inflection point for Core Scientific,” CEO Adam Sullivan said in a statement. “In a matter of months, we have transformed vision into execution, delivering infrastructure at scale and positioning ourselves at the center of one of the most important shifts in modern computing.”

Like many Bitcoin miners who are grappling with rising competition and declining revenues following last year’s halving, Core Scientific has been expanding into the high-value compute market as Bitcoin’s hash rate hits record highs.

The majority of Core Scientific’s revenues are still related to digital assets. The firm generated $67.2 million in self-mining revenue and $3.8 million in digital asset hosting revenue in Q1, compared to $8.6 million in “colocation” (a.k.a. high-performance compute hosting) revenue.

The company’s hosting revenue dropped $25.6 million quarter-over-quarter, reflecting a strategic pivot toward HPC services and lower power costs partially offset that decline.

The firm signed a deal with CoreWeave (NYSE: MWRE), a blockchain firm that has benefited from the AI boom, to provide 250MW of billable capacity by the end of next year. This deal is expected to drive $360 million in revenue for the firm next year.

Last year, Core Scientific emerged from bankruptcy and had its shares relisted on Nasdaq. Under the reorganization plan, the firm’s shareholders will receive approximately 60% of its new equity, with the company agreeing to repay its debt in full and agree to certain warrant arrangements.