Shares of Core Scientific, Inc. (CORZ) are soaring in pre-market trading on Thursday, climbing 6.57% following the release of the company's first-quarter 2025 financial results. The cryptocurrency mining and hosting company's stock price movement suggests that investors are reacting positively to the report, despite a significant revenue decline.

Core Scientific reported a 55.7% year-over-year drop in Q1 2025 revenue to $79.5 million, primarily due to a decrease in Bitcoin mining output following the April 2024 halving event. However, the company's net income surged by an impressive 175.6% to $580.7 million. This substantial increase was largely attributed to a $621.5 million non-cash mark-to-market adjustment related to warrants and a $16.3 million decrease in interest expenses.

Investors appear to be focusing on Core Scientific's strategic pivot towards high-density colocation services, especially through its partnership with CoreWeave. The company aims to deliver 250MW of billable capacity by year-end, projecting annualized colocation revenue of $360 million by 2026. This shift in focus could be seen as a positive long-term strategy in the evolving cryptocurrency and high-performance computing markets. Adding to the optimistic outlook, H.C. Wainwright analyst Kevin Dede maintained a "Buy" rating on CORZ with a price target of $17.00, further boosting investor confidence in the company's future prospects.