TeraWulf reported a net loss of $427 million in the first quarter of 2026, up from the $61.4 million loss in the same period a year earlier. The miner posted total revenue of $34 million for the quarter, with high-performance computing lease revenue accounting for $21 million, roughly 60% of the total and a 117% jump from the prior quarter.
Bitcoin mining revenue fell 50% to around $13 million. The HPC revenue was driven by 60 megawatts of operational critical IT capacity at Lake Mariner, one of North America’s largest HPC campuses, leased to Core42. TeraWulf is also coordinating infrastructure delivery with Fluidstack and Google, with additional capacity buildings on track for delivery in 2026.
TeraWulf AI revenue doubles amid transition
The company ended the quarter with approximately $3.1 billion in cash. According to chief financial officer Patrick Fleury, the capital structure is designed to align long-term financing with contracted cash flows, supporting disciplined growth whilst maintaining financial flexibility.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Net loss | $427m | $61.4m | +595% |
| Total revenue | $34m | – | – |
| HPC revenue | $21m | – | +117% QoQ |
| Bitcoin mining revenue | $13m | $26m | -50% |
| Cash position | $3.1bn | – | – |
In October last year, TeraWulf announced a 25-year lease deal with Fluidstack, backed by Google, worth around $9.5 billion in contracted revenues, an expansion of an earlier 10-year commitment. The miner is also building out a national pipeline of power-advantaged sites, including a newly acquired 480 MW site in Hawesville, Kentucky, a 300 MW project in Lansing, New York, and a 210 MW site in Morgantown, Maryland, with potential to scale to 1 gigawatt.
CEO Paul Prager stated that the company is building a power-advantaged platform that is increasingly differentiated in a market constrained by access to power, noting that the company’s Abernathy joint venture, a 168 MW HPC project under a 25-year lease, remains on track for delivery in the fourth quarter of 2026.
Mining sector shifts to HPC
Shares of WULF closed the day down 2.6%, though the stock has gained more than 105% since the start of the year and is up over 30% in the past month. The share price action reflects the market’s recognition of the TeraWulf AI revenue growth trajectory, even as the transition costs weigh on near-term profitability.
According to reports, Riot Platforms posted $167.2 million in revenue for the first quarter of 2026, with its newly launched data centre business contributing $33.2 million, helping offset a decline in Bitcoin mining revenue, which fell to $111.9 million from $142.9 million a year earlier.
Bitcoin miners are pivoting to AI infrastructure as shrinking margins push the industry towards more predictable revenue. The sector has watched Core Scientific, MARA Holdings, Hive, Hut 8 and Iren convert mining facilities into data centres or acquire AI compute assets. The common thread is power. Mining operations secured cheap baseload capacity years ago. Now that capacity is worth more running inference workloads than hashing blocks.
The TeraWulf AI revenue print underscores the strategic logic, even if the accounting reflects the cost of retooling. The losses stem largely from asset write-downs and the expense of pivoting infrastructure built for one purpose towards another. The contracted revenue pipeline, however, suggests the gross margin profile improves materially once the builds complete and lease payments stabilise.
The wider question is whether the AI infrastructure boom can absorb the capacity miners are pivoting towards as quickly as the deals imply. Hyperscalers are racing to secure power and rackspace, but utilisation rates and pricing power will determine whether these miners have successfully front-run the demand curve or simply swapped one commodity margin business for another.
Next catalyst for TeraWulf: the Q4 2026 delivery of the Abernathy project.
This article is for information purposes only and does not constitute investment advice. Readers should not act on any information contained here without first consulting an authorised financial adviser. Past performance is not a reliable indicator of future results.
