TeraWulf Earns More From AI Computing Than Bitcoin Mining in Q1

TeraWulf Inc. reported that its high-performance computing (HPC) business generated more revenue than its bitcoin mining segment for the first time in the quarter ended March 31, 2026.

In its financial report for the first quarter of 2026, the company posted total revenue of $34.0 million, compared with $34.4 million in the same period last year. Of that amount, HPC leasing contributed $21.0 million, while bitcoin mining generated just under $13.0 million.

HPC business takes the lead

CEO Paul Prage commented on the results and development, stating, “This is the first period where HPC leasing is meaningfully reflected in our financials.” 

This means the company is now earning real and strong income from renting out computing power for long-term contracts. Instead of depending mostly on Bitcoin rewards, the company is now getting more steady income from clients who need large computing power.

Inside TeraWulf’s growing Lake Mariner facility

The company reported that at its Lake Mariner site in New York, 60 megawatts of HPC power is already working and making money. This power is being used by customers like Core42. More buildings at the same site are still being built, including CB-3, CB-4, and CB-5, which will be ready in 2026. 

These new additions will increase how much computing power the company can offer. TeraWulf is also working closely with customers like Fluidstack to make sure equipment and infrastructure are ready at the same time.

Shift from Bitcoin mining to compute contracts

TeraWulf is changing its old Bitcoin mining setup, turning parts of it into HPC systems. However, this change is not cheap. 

The company said it spent nearly $200 million on its shift, including $27.7 million in losses from shutting down mining operations. Even with these costs, the company still has strong financial reserves. It ended the quarter with about $3.1 billion in cash and restricted cash, which helped it continue its expansion plans.

However, the company still reported a large loss. It had a net loss of $427.6 million in this quarter, which is much higher than the $61.4 million loss last year. But the company explained that almost half of this loss came from accounting changes, not actual cash loss. 

CFO Patrick Fleury said, “The first quarter reflects a more stable, contracted revenue model.” This means the company is slowly moving toward safer and more predictable income from contracts instead of risky Bitcoin mining.

Crypto mining firms shift toward AI infrastructure

TeraWulf continues to expand its infrastructure footprint, including facilities in Hawesville, New York, and Maryland.

Its Hawesville site has access to 480 megawatts of power. The company said it plans to add between 250 and 500 megawatts of contracted capacity annually.

Other Bitcoin miners are following a similar strategy. Riot Platforms recently reported $33.2 million in new data center revenue during Q1, driven largely by its AMD-related expansion into computing infrastructure. The pattern shows how mining companies are evolving into broader digital infrastructure providers.

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