TeraWulf's AI Compute Revenue Outpaces Bitcoin Mining Amid $427 Million Loss

In brief

• Shares in TeraWulf (WULF) fell on the day after the firm reported a $446 million loss in Q1.
• The firm reported revenues of $34 million, 60% of which are now attributed to its expansion into AI HPC.
• Meanwhile its Bitcoin mining revenues fell 50% quarter-over-quarter to around $13 million.

Shares in publicly traded Bitcoin miner TeraWulf (WULF) finished the trading day down 2.6% after the firm posted a quarterly net loss of more than $427 million in Q1 2026, compared to just a $61.4 million loss in Q1 2025.  During the quarter, the firm reported revenues of $34 million—60% of which, or $21 million worth, came from its transition to AI compute—a 117% increase from the previous quarter. On the other hand, its Bitcoin mining revenues shrank by 50% over the same period to approximately $13 million. “The first quarter of 2026 was defined by execution,” said TeraWulf CEO and Chairman Paul Prager, in a statement. “We entered the year with a fully established platform, including sites, contracts, and capital, and are now converting that foundation into operating performance and recurring revenue.”

The firm’s commitment to high-performance computing (HPC) is highlighted by an October Google-backed deal, which expanded its previously announced 10-year multi-billion dollar commitment with FluidStack to a 25-year lease deal worth around $9.5 billion in contracted revenues.   Moving forward, TeraWulf expects much more consistent, structured revenues from its AI compute deals, contrasting its future with the historical focus and reliance upon a less-steady Bitcoin mining pursuit.  “The first quarter reflects a more stable, contracted revenue model,” said CFO Patrick Fleury, in a statement. “As we continue to scale, we expect the business to be increasingly driven by recurring, contracted revenue, reducing exposure to the volatility historically associated with Bitcoin mining.”

The firm, which indicated it will continue to repurpose elements of its Bitcoin mining business to “support higher-value HPC workloads,” concluded the quarter with around $3.1 billion in cash and cash equivalents.  Despite dipping on the day, shares of WULF are up more than 30% in the last month of trading, recently changing hands around $23.51. WULF has gained more than 105% since the year began.