TeraWulf’s Bitcoin-mining income fell 73% 12 months over 12 months within the second quarter as high-performance computing and synthetic intelligence leases reached 71% of gross sales, accelerating the corporate’s shift away from its unique enterprise.
In response to the agency’s second-quarter report, digital asset income dropped to $12.8 million from $47.6 million a 12 months earlier. However, HPC leasing generated $31.9 million, lifting complete quarterly income to $44.8 million.
Which means the brand new enterprise softened the mining collapse however didn’t totally change it, leaving total gross sales about 6% decrease than a 12 months earlier.
Nonetheless, the reversal displays how quickly the corporate has redirected its energy and infrastructure towards information facilities constructed for synthetic intelligence workloads.
TeraWulf nonetheless operates Bitcoin-mining infrastructure at its Lake Mariner campus in New York, though parts are being repurposed for contracted HPC improvement. That shift has decreased mining to a secondary enterprise as long-term data-center leases change into the corporate’s principal income supply.
Chief Monetary Officer Patrick Fleury described the quarter as one other step within the “transformation of our monetary profile,” pointing to HPC’s 71% income share and stronger credit score help behind the corporate’s leases.
TeraWulf spends closely on AI to switch its Bitcoin mining engine
Constructing the infrastructure behind that AI transition has produced substantial losses and capital calls for.
TeraWulf reported a $940.8 million web loss throughout the second quarter, largely pushed by a $755.7 million noncash cost tied to the remeasurement of warrant liabilities. The agency’s web loss stands at roughly $1.4 billion this 12 months.
The corporate however reported progress in changing development into paying capability. Lake Mariner had 81 megawatts of revenue-generating crucial IT capability on the finish of June earlier than an early-July supply elevated the whole to 102 MW.
That supply additionally activated $600 million of Google credit score help for Fluidstack’s lease obligations. One other 336 MW stays beneath development, with the primary further capability anticipated to start producing lease throughout the second half of 2026.
Chairman and CEO Paul Prager stated these efforts confirmed that the corporate was “transferring from platform formation to scaled execution.”
Prager argued that the agency’s management of energy infrastructure would change into extra invaluable as electrical energy entry constrains AI improvement. He stated:
“We’re ready to comprehend worth the place applicable and redeploy capital towards larger-scale alternatives the place we’ve better management over the infrastructure, buyer relationship and long-term economics.”
The most important check of those strikes sits past the present buildout. TeraWulf signed a 20-year lease after quarter-end to offer Anthropic with about 401 MW at its Justified campus in Kentucky.
The settlement carries about $19 billion of contracted income, however preliminary capability just isn’t anticipated till the second half of 2027, with full supply scheduled for early 2028. The agency added that income from this deal might rise to roughly $33 billion if Anthropic workout routines each five-year extension choices.
Regardless of the price of its AI enlargement, TeraWulf maintained its purpose of contracting a further 250 MW to 500 MW of crucial IT capability every year.
The corporate stated it will pursue new initiatives selectively, specializing in websites with secured energy, confirmed buyer demand, scalable infrastructure and compelling risk-adjusted returns.
