TeraWulf Q1 loss $427M as AI leases offset mining drop

TeraWulf reported a $427 million net loss in the first quarter of 2026. Total revenue was $34 million, with AI and high-performance computing (HPC) lease revenue of $21 million, about 60% of the total. Bitcoin mining revenue fell roughly 50% to about $13 million. The company posted a $61.4 million net loss in the same quarter a year earlier. Cash and cash equivalents at quarter end were approximately $3.1 billion. HPC lease revenue rose 117% from the prior quarter.

HPC income was driven by 60 megawatts of operational critical IT capacity at the Lake Mariner campus leased to Core42. TeraWulf said it is coordinating infrastructure delivery with Fluidstack and Google, and additional capacity buildings are on track for delivery later in 2026. In October 2025 the company expanded an earlier commitment into a 25-year lease with Fluidstack and Google that it said is expected to generate about $9.5 billion in contracted revenue.

The company is expanding a pipeline of power-advantaged sites. It acquired a 480 MW site in Hawesville, Kentucky, and is developing a 300 MW project in Lansing, New York, and a 210 MW site in Morgantown, Maryland, which the company says could scale to about 1 gigawatt. The Abernathy joint venture, a 168 MW HPC project under a 25-year lease, is scheduled for delivery in the fourth quarter of 2026.

Chief Financial Officer Patrick Fleury said, “Our capital structure is designed to align long-term financing with contracted cash flows, supporting disciplined growth while maintaining financial flexibility.” CEO Paul Prager added that the company is “building a power-advantaged platform” in a market constrained by access to power.

Shares of TeraWulf closed down 2.6% on the day of the announcement. The stock has risen more than 105% since the start of the year and about 30% in the past month.

Other publicly traded bitcoin miners are shifting capacity to data-center and AI workloads as mining revenue declines. Riot Platforms reported $167.2 million in revenue for the first quarter of 2026, with its data center business contributing $33.2 million and bitcoin mining revenue falling to $111.9 million from $142.9 million a year earlier. Companies including Core Scientific, Marathon Digital, Hive, Hut 8 and Iren are developing or acquiring AI compute assets or converting mining sites into data centers.