Core Scientific reported a significant decrease in cryptomining revenue as it pivots towards AI colocation services. Despite an increase in net income, total revenue declined to $79.5 million. The company plans to expand infrastructure for AI offerings while looking into M&A opportunities and new site developments over the next three years.
Core Scientific is experiencing a notable decline in its cryptomining revenue as it shifts focus towards AI colocation. In the recently released financial results for the first quarter of 2025, the company’s total revenue hit $79.5 million, significantly down from $179.3 million the previous year. While net income saw an impressive rise to $580.7 million compared to $210.7 million in Q1 2024, this success isn’t reflected in all segments, particularly in mining revenues.
The breakdown of revenue shows a concerning trend: self-mined Bitcoin revenue fell by $67.2 million, primarily due to a staggering 75 percent drop in Bitcoins mined. This decline correlates with the recent halving event and the company’s shifting strategies toward colocation services. However, a silver lining emerged with a 74 percent rise in Bitcoin’s average price and a 33 percent drop in power costs, somewhat compensating for the losses in mining.
Operating losses were reported at $42.6 million, starkly contrasting with an operating income of $55.2 million from the same period last year. Adjusted EBITDA suffered as well, dropping to $6.1 million from $88 million in Q1 2024. CEO Adam Sullivan remarked, “This quarter marks an inflection point for Core Scientific,” noting their rapid transition and commitment to high-performance data infrastructure. He believes this sets them apart while pushing to meet increasing demand.
Originally founded in 2017 as a crypto firm, Core Scientific has expanded its horizons to include hosting AI companies. They’ve secured multiple partnerships with AI cloud provider CoreWeave, with plans for 500 megawatts of infrastructure by the latter half of 2026. This expansion will utilize both new sites and the conversion of existing crypto sites across various states, including North Dakota and Texas.
During the earnings call, Sullivan emphasised growth plans that involve organic developments and strategic mergers and acquisitions (M&A). He highlighted the ambitious goal of adding an extra 400 megawatts of billable capacity through new site development over a three-year timeline, targeting locations with optimal power cost advantages.
Sullivan’s comments indicated that the company is actively seeking new clientele, especially in the enterprise sector, with negotiations underway for non-hyperscale deals in the 50 to 100 megawatt spectrum. He expressed a strong desire to enhance their infrastructure dominance in the evolving compute landscape, showcasing ambitions to develop a robust data centre platform that prioritises GPU deployment strategies. He firmly believes this initiative will position them as a leader in the U.S. sector for next-generation computing solutions.
