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TeraWulf reported a 51% increase in revenue for the third quarter of 2026 on Friday, November 6, as revenue from its HPC business surpassed income from Bitcoin mining.
In a release on November 5, the Nasdaq-listed company generated $76.2 million in revenue, as growing data center operations helped offset a sharp drop in mining income.
The shift reflected contrasting performances across its two business segments. TeraWulf made $63 million from HPC leasing during the quarter, up 774% from $7.2 million in the same period last year. Meanwhile, Bitcoin mining revenue fell to $13.2 million from $43.4 million, a decline of approximately 69%. As a result, HPC leasing accounted for 83% of the company’s total revenue, compared with just 14% a year earlier.
The figures show how TeraWulf is changing the way it makes money. Instead of depending mainly on mining Bitcoin, the company is putting more resources into building data centers and renting computing space to businesses that need powerful computers to run their operations.
HPC business takes the lead
Despite higher revenue, the company’s operating loss widened. Its $709.9 million net income attributable to shareholders included a $728.4 million non-cash gain from changes in the value of warrant and derivative liabilities. Its operating loss widened to $88.2 million from $24.7 million a year earlier, while adjusted EBITDA came in at negative $12.8 million.
At its Lake Mariner site in New York, 102 megawatts (MW) of critical IT capacity was generating revenue as of September 30. Construction is underway on another 336 MW, with additional buildings expected to begin generating rental income in the fourth quarter of 2026 and early 2027.
The company is also expanding in Kentucky through a 20-year lease agreement with Anthropic covering approximately 401 MW of critical IT capacity at its Justified campus. The deal represents about $19 billion in contracted revenue. Google has provided a credit backstop to support project financing, while Fluor Enterprises will handle construction under a separate agreement covering three data center buildings. The first phases are expected in late 2027.
At its Muskie campus in Kentucky, TeraWulf increased its contracted power capacity from 500 MW to 1 gigawatt, pending regulatory approval. The company is targeting another 250 MW to 500 MW of contracted critical IT capacity annually.
TeraWulf CEO Paul Prager said Lake Mariner was already generating revenue, while Justified had secured a customer and financing support to move forward. He also pointed to Muskie’s increased power capacity as part of the company’s expansion plans.
Other crypto firms report Q3 earnings
Meanwhile, other companies in the crypto industry have also released their third-quarter earnings.
Bitcoin treasury company Strive reported $509 million in net income, largely supported by a $533.7 million unrealized gain on its Bitcoin holdings. However, its total revenue was only $2.7 million, showing that the profit mainly came from changes in the value of its investments rather than its operating businesses.
Circle, the company behind USDC, reported $865 million in revenue and reserve income, up 17% year over year. Its average USDC in circulation reached $73.3 billion, while the value of USDC transactions across blockchain networks increased 49% to $13.9 trillion.
Tether also reported $1.5 billion in net operating profit for the third quarter. Its reserve buffer nearly doubled from $4.1 billion in June to $7.95 billion by September 30. The company held $191.45 billion in total assets against $183.50 billion in liabilities, with its US Treasury holdings reaching $132.4 billion.
Meanwhile, Coinbase returned to quarterly profitability with $718.7 million in net income. However, this included $715 million in gains on crypto assets held for investment. The exchange recorded approximately $1.2 billion in total revenue, with transaction revenue contributing about $590 million and subscription and services bringing in roughly $570 million.
TeraWulf ended the third quarter with approximately $2.4 billion in cash, cash equivalents, and restricted cash as it continues expanding its data center operations.
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