TeraWulf Revenue Jumps 20% but Massive $661M Loss Raises Eyebrows

• Revenue climbs 20% as losses surge dramatically
• Bitcoin mining slows while AI data centers expand
• Massive $661 million loss overshadows revenue growth

TeraWulf reported total revenue of $168.5 million for full year 2025, reflecting a 20.3% increase from the prior year as the Nasdaq listed bitcoin miner expanded beyond traditional digital asset operations and accelerated its push into high performance computing infrastructure. Notably, the annual figure included $16.9 million generated from newly launched HPC leasing operations, signaling the early financial contribution of its artificial intelligence focused strategy.

Management characterized 2025 as a pivotal year marked by structural repositioning, as the company secured long term data center lease agreements covering 522 megawatts of critical IT load while building a broader foundation for recurring infrastructure driven income. These agreements represent more than $12.8 billion in contracted customer  revenue, and the expansion is further supported by $6.5 billion in financing tied directly to the continued development of its HPC platform.

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Losses Widen as Mining Revenue Declines

Even so, profitability moved sharply in the opposite direction as net loss widened to $661.4 million compared with $72.4 million in 2024, reflecting the substantial capital expenditures and accounting impacts associated with scaling next generation data center capacity. Additionally, the company reported a non GAAP adjusted EBITDA loss of $23.1 million, underscoring the near term financial pressure created by its infrastructure heavy investment cycle.

Quarterly performance revealed additional strain within the legacy mining segment, as fourth quarter digital asset revenue declined to $26.1 million from $43.4 million in the third quarter due to lower bitcoin production levels and softer market pricing during the period. Consequently, mining weakness weighed on sequential results and highlighted the volatility inherent in crypto dependent revenue streams.

However, performance in the HPC segment continued to gain traction, with lease revenue rising to $9.7 million in the fourth quarter compared with $7.2 million in the previous quarter, partially offsetting mining declines and reinforcing the company’s evolving revenue mix toward more stable infrastructure contracts.

AI Expansion Anchors Long Term Strategy

Operational focus increasingly centers on its Lake Mariner campus in New York and the Abernathy HPC campus in Texas, which together anchor the company’s expanding artificial intelligence and cloud compute footprint across multiple regions. Chief Executive Officer Paul Prager stated that TeraWulf entered 2026 with 522 megawatts of contracted HPC capacity and a gross 2.9 gigawatt multi regional platform designed to support sustained long term expansion.

Earlier this month, the company strengthened its portfolio through the acquisition of brownfield infrastructure sites in Kentucky and Maryland, adding approximately 1.5 gigawatts of capacity and further positioning itself within the competitive AI driven data center market, even as its widening annual loss remains a defining feature of its latest financial results.

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