Core Scientific has seen a drop in cryptomining revenue as it pivots to focus on AI colocation.

The AI and cryptomine data center company this week announced financial results for Q1 2025. Net income was $580.7 million, as compared to $210.7m for the same period in 2024.

Total revenue was $79.5m, as compared to $179.3m for the same period last year. The company saw $67.2m in self-mined and $3.8m in hosted mining revenue, and $8.6m in colocation revenue. Colocation saw a $500,000 profit for the quarter.

The company saw a $82.8m decrease in self-mining revenue, driven by a 75 percent decrease in the number of Bitcoins mined due to the halving and the company’s shift to colocation. Though the loss was “partially offset” by a 74 percent increase in the average price of Bitcoin and a 33 percent decrease in power costs due to lower rates and usage. Hosted mining revenue also decreased thanks to the firm’s shift to colocation; the company has a legacy contract that will continue to roll off over the course of 2025 as it looks to exit that business.

Operating loss was $42.6m, as compared to Operating income of $55.2m for the same period in 2024. Adjusted EBITDA was $6.1m, as compared to $88m for the same period in the prior year.

“This quarter marks an inflection point for 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 of the most important shifts in modern computing. The pace of demand for high-performance data infrastructure is accelerating, and our ability to move with speed and precision is setting us apart. We are not just expanding capacity; we are shaping the foundation for the next era of data center infrastructure,” said Adam Sullivan, Core Scientific CEO.

Founded in 2017 as a crypto firm, the company has since pivoted to also offering hosting to AI cloud firms. It has signed multiple deals with AI cloud firm CoreWeave, and expects to have 500MW of infrastructure ready for CoreWeave by the second half of 2026; it is building new sites and converting a number of its existing crypto sites to host the AI company. Core Scientific has sites across North Dakota, Georgia, Kentucky, North Carolina, Alabama, Texas, and Oklahoma.

During the earnings call, CEO Sullivan said the company aims to grow organically, but will also be targeting M&A deals.

“We also continue to believe there are significant opportunities to grow into new geographies, and we’re targeting an additional 400MW of billable capacity through new site development over the next three years,” he said. “Our site selection strategy continues to focus on locations where we can secure the right power at the right cost and match it to the right type of customer demand.”

Sullivan continued: “We’re currently in market with a number of new sites, and these are sites that we would expect to announce alongside new customer developments. And so we’re hopeful that over the course of 2025, we’ll be able to make multiple announcements related to this as we are evaluating multiple jurisdictions today to continue to grow into.”

The CEO notes the company is targeting multiple users in the enterprise space, with several non-hyperscale deals under negotiation in the 50–100MW range.

“We really want to go after potential targets that represent an opportunity to continue our lead in terms of the amount of infrastructure that’s being developed for this next generation of compute,” Sullivan said. “We believe over time, as we develop Core Scientific into a true data center platform, that we will have a mix of more traditional GPU or CPU capacity. But really our focus is continuing to grow and develop our GPU deployment platform, which we believe will be one of the largest in the United States.”