TeraWulf Reports Significant Revenue Decline and Increased Net Loss in Q1 2025

TeraWulf Inc. reported a significant decline in its financial performance for the first quarter of 2025, with revenues totaling $34.4 million, down from $42.4 million in the same period last year. This $8 million decrease was primarily attributed to a reduction in bitcoin mined, which fell to 372 bitcoins from 767 bitcoins year-over-year, largely due to the April 2024 halving event and increased network hashrate. Despite the drop in mined bitcoin, the average price of bitcoin increased to $93,522, compared to $53,260 in the prior year, partially offsetting the revenue decline.

The company's total costs and expenses surged to $94 million in Q1 2025, up from $44.7 million in Q1 2024. The cost of revenue, excluding depreciation, rose to $24.6 million, driven by higher power expenses linked to increased mining capacity and elevated power prices. Additionally, selling, general, and administrative expenses saw a substantial increase to $50.1 million, primarily due to stock-based compensation expenses, which accounted for $31.7 million of the total. TeraWulf reported a net loss of $61.4 million for the quarter, compared to a loss of $9.6 million in the previous year.

Strategically, TeraWulf has been focusing on expanding its operations and infrastructure. The company operates its bitcoin mining activities at the Lake Mariner Facility in New York, which has 245 MW of energized capacity. In December 2024, TeraWulf signed a multi-year data center lease agreement with Core42, securing 72.5 MW of HPC hosting capacity, which is expected to come online throughout 2025. The company also sold its 25% equity interest in the Nautilus Cryptomine Facility in October 2024, reallocating capital to enhance its wholly owned infrastructure.

As of March 31, 2025, TeraWulf had cash and cash equivalents of $218.2 million, down from $274.1 million at the end of 2024. The company’s total liabilities increased to $670.8 million, up from $543.1 million, largely due to the issuance of convertible notes and increased accounts payable. TeraWulf's management remains focused on optimizing operations and expanding its digital infrastructure, with plans to leverage its low-cost, predominantly zero-carbon energy sources to enhance profitability in the evolving digital asset landscape. The outlook remains cautious, with management highlighting potential risks related to market conditions, competition, and the need for additional capital to support future growth.