TeraWulf’s high-performance computing business overtook its bitcoin mining segment for the first time in Q1 2026, with HPC lease revenue reaching $21 million compared to digital asset revenue of just under $13 million, according to the company’s earnings report. The company reported total revenue of $34 million for the quarter, roughly flat from $34.4 million a year earlier, as it ramps up long-term compute contracts.
HPC Business Growth and Transition
CEO Paul Prager stated on the earnings call: “This is the first period where HPC leasing is meaningfully reflected in our financials.” CFO Patrick Fleury described the quarter as “a business in transition,” with revenue increasingly tied to “stable, contracted” compute contracts.
At its Lake Mariner facility in New York, TeraWulf reported that 60 MW of HPC capacity is now generating revenue, with additional buildings slated to come online later this year. The company is also repurposing part of its bitcoin mining infrastructure to support HPC workloads.
Financial Results and Costs
Despite revenue stability, TeraWulf saw a $427.6 million net loss, widening from $61.4 million a year earlier, though nearly half was attributed to non-cash warrant revaluations. Operating costs rose to nearly $200 million, which includes $25.7 million in impairments tied partly to shutting down mining operations.
TeraWulf ended the quarter with about $3.1 billion in cash and restricted cash and reiterated plans to add between 250 and 500 megawatts of new contracted capacity annually.
Industry Trend Context
This shift is becoming more common across the sector. Riot Platforms recently reported $33.2 million in first-time data center revenue in Q1, with its AMD deal driving the bulk of that segment as it expands beyond bitcoin mining.
Stock Performance
Shares of TeraWulf (NASDAQ: WULF) were down 1% on the day to $23, according to The Block’s crypto equities price page.
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