Nasdaq-listed Bitcoin mining firm Core Scientific Inc. reported a net profit of $580 million in the first quarter but fell short of analyst revenue estimates due to a decline in mining profits. The company’s Q1 2025 results, released on May 7, showed a significant increase from the previous year, with total revenue reaching $79.5 million, missing Zacks analysts’ estimates by 8.11%. Core Scientific attributed the drop in revenue to the Bitcoin halving on April 20, 2024, which reduced mining rewards. The company’s primary revenue sources were self-mining, hosted mining, and colocation services. Despite the revenue decline, Core Scientific saw a 74% increase in the average price of Bitcoin and a 33% decrease in power costs. The company recently signed a $1.2 billion deal with AI startup CoreWeave for data center expansion, anticipating annualized colocation revenue of $360 million in 2026. Core Scientific CEO Adam Sullivan described the first quarter as an “inflection point” as the company positioned itself at the forefront of the AI and high-performance computing industry. Shares in Core Scientific closed trading down 1% but rose over 3% after hours. Other Bitcoin mining firms like Riot Platforms, Hive Digital, Hut 8, and Iris Energy have also shifted towards AI and HPC operations to increase profitability. Asset manager VanEck estimated significant additional profits for companies making this transition. TeraWulf sold its stake in a Bitcoin mining facility to focus on AI and HPC data centers. The trend of Bitcoin mining companies moving towards AI and HPC operations signals a significant shift in the industry’s future direction.