Core Scientific, a company specializing in Bitcoin mining and colocation services, has recently published its financial report for the first quarter of 2025.

The report disclosed a notable 55.7% decrease in revenue. Despite this decline, the company experienced a substantial 175.6% rise in net income during the same period.

In Q1 2025, Core Scientific generated $79.5 million in revenue, down from $179.3 million in Q1 2024. The majority of revenue, amounting to 84.5%, came from self-mining activities ($67.2 million). Colocation services contributed 10.8% ($8.6 million), while hosted mining added 4.7% ($3.8 million) to the total revenue.

The gross profit from self-mining Bitcoin significantly decreased from $68.4 million in Q1 2024 to $6.0 million in Q1 2025. This decline was primarily due to reduced Bitcoin mining output, intensified by the effects of the April 2024 halving event and the shift towards colocation services.

Core Scientific achieved a net income of $580.7 million, a substantial increase compared to the previous year. This boost was mainly attributed to a non-cash mark-to-market adjustment of $621.5 million related to warrants and other rights following a drop in the stock price.

Despite facing operational challenges, with an operating loss of $42.6 million and a negative adjusted EBITDA of $6.1 million, the company maintained liquidity of $778.6 million by the end of Q1. The strategic partnership with CoreWeave, a high-performance computing provider, is expected to drive significant growth, with projections indicating $360 million in annualized colocation revenue by 2026.

Core Scientific's CEO, Adam Sullivan, expressed optimism about the company's trajectory, emphasizing the rapid evolution from vision to execution and the increasing demand for high-performance data infrastructure.

The company's stock (CORZ) has encountered challenges, experiencing a 36.6% decline year-to-date according to Yahoo Finance data. Despite this, there was a 1.0% drop in CORZ's price to $8.9 at market close, followed by a 5.2% increase to $9.3 in pre-market trading.