TeraWulf shifts to AI compute as Q1 loss widens

TeraWulf reported a net loss of $427 million in Q1 2026 and total revenue of $34 million. AI and high-performance computing contracts produced $21 million, about 60% of sales, while Bitcoin mining generated roughly $13 million, a near 50% drop from the prior quarter.

The company recorded a $61.4 million loss in Q1 2025 for comparison. Management has been repurposing mining infrastructure to host AI and HPC workloads; AI compute revenue rose 117% from the previous quarter.

Chief Executive and Chairman Paul Prager described the quarter as one of execution, noting the company entered the year with sites, contracts and capital in place and is converting that foundation into operating performance and recurring revenue.

CFO Patrick Fleury noted the firm expects scaling to increase recurring, contracted revenue and to reduce exposure to the volatility of Bitcoin mining.

TeraWulf closed the quarter with about $3.1 billion in cash and cash equivalents. Management pointed to an expanded agreement tied to FluidStack that was extended into a 25-year lease structure valued at roughly $9.5 billion in contracted revenues and linked to a cloud partner.

Bitcoin mining revenue declined about 50% to roughly $13 million, a contrast with the growth in AI compute sales and reflecting the company’s shift of capacity toward higher-value HPC workloads.

Shares slipped about 2.6% in the session after the earnings release, trading near $23.51. The stock is up more than 30% over the past month and has gained over 105% year-to-date.

TeraWulf began as a Bitcoin mining operator and has pursued long-term leases and multi-year contracts as it converts data center capacity to AI and high-performance computing services.