TeraWulf reported a sharp widening of losses in the first quarter of 2026, even as revenue from high-performance computing (HPC) leases overtook its traditional Bitcoin mining income for the first time.
The company posted a net loss of $427 million for the quarter, compared with a $61.4 million loss a year earlier. Total revenue reached $34 million, driven by a surge in AI-related leasing activity.
HPC revenue jumps, mining income falls
HPC lease revenue climbed to $21 million, a 117% increase from the previous quarter, while Bitcoin mining revenue fell 50% to about $13 million.
The growth in HPC income was largely tied to 60 megawatts of operational IT capacity leased at TeraWulf’s Lake Mariner facility to Core42, described as one of North America’s largest AI-focused campuses.
The company also highlighted new infrastructure collaborations with Fluidstack and Google, with additional build-outs expected by the end of the year.
Cash position and capital strategy
TeraWulf ended the quarter with approximately $3.1 billion in cash.
Chief financial officer Fleury said the company’s capital structure is intended to match long-term financing with contracted cash flows in order to maintain flexibility during its expansion into AI and data center infrastructure.
The widening loss was influenced by impairments on mining equipment and heavy upfront spending on new facilities.
Long-term AI deals and new capacity
TeraWulf’s pivot into AI infrastructure follows a 25-year lease agreement signed in October 2025 with Fluidstack, backed by Google, valued at about $9.5 billion in contracted revenues.
Recent acquisitions and projects include:
- a 480-megawatt site in Hawesville, Kentucky
- developments in Lansing, New York, and Morgantown, Maryland
Taken together, these bring the company’s potential capacity close to 1 gigawatt.
Chief executive officer Prager said the company’s 168-megawatt Abernathy joint venture remains on track for delivery in the fourth quarter of 2026.
Market reaction
Shares of WULF closed down 2.6% on the day of the report. Despite the pullback, the stock has gained more than 105% since January and is up over 30% in the past month.
Riot Platforms and peers accelerate diversification
Riot Platforms, another major mining group shifting into AI infrastructure, reported first-quarter 2026 revenue of $167.2 million.
Of that total:
- $33.2 million came from its new data center division
- Bitcoin mining revenue dropped to $111.9 million from $142.9 million a year earlier, as the company continued to diversify into AI processing
Other large miners—including Core Scientific, MARA Holdings, Hive, Hut 8, and Iren—are also reallocating computing assets toward AI and cloud workloads. Core Scientific, for example, has set aside 300 megawatts of power in Texas specifically for AI operations.
Halving drives business model shift
The broader industry shift has been driven by the April 2024 Bitcoin “halving,” which cut the block reward to 3.125 BTC and raised effective production costs. Thinner mining margins have pushed companies to look beyond pure digital asset production.
Operators are increasingly using their existing advantages—large-scale data centers, access to low-cost power, and technical expertise—to serve AI and cloud clients that require intensive computing power.
These clients typically sign long-term, dollar-based lease contracts, providing steadier and more predictable cash flows than mining revenues, which are tied to volatile digital asset prices.
From miners to digital infrastructure providers
Market observers now see large listed miners evolving into diversified digital infrastructure providers rather than single-asset producers.
For TeraWulf and its peers, future financial performance is expected to depend less on short-term price charts of Bitcoin and more on:
- megawatts under development
- the pace of signing new tenants
- growth in contracted revenue from data center and HPC leases
- profit margins in AI and cloud segments
Execution risk is shifting from mining profitability to construction and tenant acquisition. TeraWulf’s strategy, anchored by agreements with Core42 and Fluidstack, will be judged on its ability to deliver new capacity on schedule and fill it with long-term contracts.
As these companies double down on capital-intensive build-outs, traders will be watching whether the promised recurring revenues from AI workloads ultimately offset the mounting costs and current heavy losses.
Curious how miners and traders adapt to volatility? Learn key tactics in our guide on Bitcoin trading strategies for success.
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