Core Scientific Posts Massive $580.7M Profit in Q1 2025, Revenue Falls to $79.5M

Core Scientific, the Nasdaq-listed Bitcoin mining company, posted a massive $580.7 million profit for Q1 2025, more than doubling the $210.7 million it earned in the same period last year.

Core Scientific, the Nasdaq-listed Bitcoin (BTC) mining firm, reported a massive first-quarter profit of $580.7 million, more than double the $210.7 million it earned in the same period last year. However, the company’s revenue dropped significantly to $79.5 million, down from $179.3 million year-over-year.

As a result of a $621.5 million non-cash mark-to-market adjustment in the value of its warrants, Core Scientific reported a net income of $580.7 million for the period. This adjustment was required due to a major decrease in the company’s share price during the quarter.

Despite this profit, Core Scientific’s earnings fell short of expectations, missing Zacks analysts’ estimates by 8.11%. The company’s shares (CORZ) closed at $8.90 on Monday, down 1% during regular trading hours. However, the stock rose over 3% to $9.24 in after-hours trading following the earnings announcement.

The mining firm’s profit was largely driven by a $621.5 million non-cash mark-to-market adjustment in the value of its warrants, an accounting requirement that arose from a significant decline in the company’s share price during the quarter.

After reporting a net loss of $66.7 million in the fourth quarter of 2024 due to a $566.4 million impairment charge related to its warrants, Core Scientific returned to profitability in Q1 2025.

The company’s revenue also fell short of expectations, with analysts anticipating $86.3 million. This decline was attributed to two main factors: the Bitcoin halving event of April 2024, which cut mining rewards from 6.25 BTC to 3.125 BTC, and Core Scientific’s strategic shift toward high-performance computing services.

As part of this pivot, Core Scientific is providing 250MW of billable capacity to AI startup CoreWeave by the end of this year, a partnership that will see them colocate in four of Core Scientific’s facilities. The first tranche of 8MW of capacity at the Denton facility will be delivered by the end of May, and an additional 40MW is expected by the end of the quarter.

This partnership is projected to generate approximately $360 million in annual revenue for Core Scientific by 2026.

At the start of the year, Core Scientific had planned to deploy around 100MW of capacity for CoreWeave in 2025. However, due to strong demand for AI computing, the companies decided to accelerate their partnership and expand the partnership to deploy 250MW of capacity by year-end.

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

“We are advancing rapidly in our partnership with CoreWeave to build out the next generation of AI and HPC technology. We anticipate having 250MW of billable capacity to CoreWeave by the end of this year and anticipate entering 2026 with annualized colocation revenue of approximately $360 million,” he added.

The company’s revenue breakdown shows that digital asset operations still dominate its business, with $67.2 million coming from self-mining and $3.8 million from hosted mining. Its colocation (high-performance computing) revenue reached $8.6 million.

Despite a $25.6 million quarter-over-quarter decline in hosting revenue, which began in the fourth quarter of 2024, Core Scientific’s operating expenses also decreased due to lower power costs. This was attributed to reduced rates and usage.

In February, Core Scientific and CoreWeave announced a $1.2 billion data center expansion deal, setting the stage for a substantial partnership in the high-performance computing space.

The companies’ partnership began in December 2024, shortly after Core Scientific went public with its plans to transition a portion of its mining energy capacity to support AI and HPC.

Core Scientific’s strategic shift aligns with an industry trend. According to asset manager VanEck, if publicly traded Bitcoin miners shifted 20% of their energy capacity to AI and high-performance computing by 2027, they could increase yearly profits by $13.9 billion over 13 years.

This analysis, based on 2024 figures, also suggests that shifting 50% of capacity would yield even greater returns, with an estimated $34.8 billion in yearly profit.

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