TeraWulf’s Bitcoin mining revenue fell 73% as AI related leases reached 71% of sales
TeraWulf’s Bitcoin-mining revenue fell 73% yr over yr within the second quarter as high-performance computing and synthetic intelligence leases reached 71% of sales, accelerating the corporate’s shift away from its unique enterprise.
According to the agency’s second-quarter report, digital asset revenue dropped to $12.8 million from $47.6 million a yr earlier. On the opposite hand, HPC leasing generated $31.9 million, lifting whole quarterly revenue to $44.8 million.
This signifies that the brand new enterprise softened the mining collapse however didn’t absolutely exchange it, leaving total sales about 6% decrease than a yr earlier.
Still, the reversal displays how quickly the corporate has redirected its energy and infrastructure towards data centers built for artificial intelligence workloads.
TeraWulf nonetheless operates Bitcoin-mining infrastructure at its Lake Mariner campus in New York, though parts are being repurposed for contracted HPC improvement. That shift has decreased mining to a secondary enterprise as long-term data-center leases change into the corporate’s principal revenue supply.
Chief Financial Officer Patrick Fleury described the quarter as one other step within the “transformation of our monetary profile,” pointing to HPC’s 71% revenue share and stronger credit score help behind the corporate’s leases.
TeraWulf spends closely on AI to exchange its Bitcoin mining engine
Building the infrastructure behind that AI transition has produced substantial losses and capital calls for.
TeraWulf reported a $940.8 million web loss in the course of the second quarter, largely pushed by a $755.7 million noncash cost tied to the remeasurement of warrant liabilities. The agency’s web loss stands at roughly $1.4 billion this yr.
The firm however reported progress in changing development into paying capability. Lake Mariner had 81 megawatts of revenue-generating essential IT capability on the finish of June earlier than an early-July supply elevated the overall to 102 MW.
That supply additionally activated $600 million of Google credit support for Fluidstack’s lease obligations. Another 336 MW stays beneath development, with the primary extra capability anticipated to start producing hire in the course of the second half of 2026.
Chairman and CEO Paul Prager stated these efforts confirmed that the corporate was “shifting from platform formation to scaled execution.”
Prager argued that the agency’s management of energy infrastructure would change into extra invaluable as electrical energy entry constrains AI improvement. He stated:
“We are ready to understand worth the place acceptable and redeploy capital towards larger-scale alternatives the place we now have better management over the infrastructure, buyer relationship and long-term economics.”
The largest check of these strikes sits past the present buildout. TeraWulf signed a 20-year lease after quarter-end to supply Anthropic with about 401 MW at its Justified campus in Kentucky.
The settlement carries about $19 billion of contracted revenue, however preliminary capability isn’t anticipated till the second half of 2027, with full supply scheduled for early 2028. The agency added that revenue from this deal might rise to roughly $33 billion if Anthropic workout routines each five-year extension choices.
Despite the price of its AI enlargement, TeraWulf maintained its purpose of contracting a further 250 MW to 500 MW of essential IT capability annually.
The firm stated it might pursue new tasks selectively, specializing in websites with secured energy, confirmed buyer demand, scalable infrastructure and compelling risk-adjusted returns.
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