Core Scientific Nets $580M in Q1 Despite Revenue Miss, Eyes AI and HPC Future

According to the firm’s May 7 earnings report , Core Scientific generated $79.5 million in total revenue, falling 8.11% below projections from Zacks Investment Research and down significantly from $179.3 million in Q1 2024. The decline was primarily attributed to reduced mining output and revenue following Bitcoin’s April 2024 halving event, which cut block rewards from 6.25 BTC to 3.125 BTC.

Self-mining remained the company’s dominant revenue stream, contributing $67.2 million, followed by $8.6 million from colocation services — previously categorized as high-performance computing (HPC) hosting — and $3.8 million from hosted mining operations.

Despite the revenue drop, the company’s profitability was bolstered by two key factors: a 74% surge in Bitcoin’s average market price and a 33% reduction in energy costs, thanks to decreased consumption and favourable power rates.

Core Scientific has been gradually pivoting toward AI-driven data infrastructure. In February, the firm inked a $1.2 billion data centre expansion agreement with CoreWeave, an artificial intelligence startup. The deal forms a key part of Core Scientific’s broader strategic shift into HPC and AI hosting — a move expected to generate $360 million in annualized colocation revenue by 2026.

CEO Adam Sullivan called the quarter “an inflection point,” highlighting the company’s strategic repositioning to capitalize on the rising demand for high-performance data centres. “center of one of the most important shifts in modern computing,” he stated.

Asset manager VanEck previously projected that if public Bitcoin miners reallocated 20% of their energy to AI and HPC workloads by 2027, the sector could collectively add $13.9 billion in annual profits over 13 years.

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