TeraWulf (WULF) Shares: AI Revenue Surges as Bitcoin Mining Revenue Drops 50% in Q1 2026

Summary

• TeraWulf recorded a net loss of $427 million for the first quarter of 2026, compared to a $61.4 million loss during the same period last year.
• Revenue from high-performance computing (HPC) leases surged 117% quarter-over-quarter to $21 million, accounting for approximately 60% of the company’s total revenue.
• Income generated from Bitcoin mining declined by 50% to roughly $13 million.
• The company concluded the quarter holding approximately $3.1 billion in cash and restricted cash.
• Shares of WULF fell 2.6% on Friday, though the stock remains up more than 105% year-to-date.

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(SeaPRwire) –   TeraWulf announced a net loss of $427 million for Q1 2026, representing a significant increase from the $61.4 million loss reported in the year-ago quarter.

TeraWulf Inc., WULF

Total quarterly revenue reached $34 million. High-performance computing lease revenue accounted for $21 million—roughly 60% of the total—following a 117% increase from the previous quarter.

Conversely, Bitcoin mining revenue slid 50% to about $13 million, as the sector continues to face pressure from challenging mining economics.

$WULF Earnings are out!

Revenue: $34.0M vs $36.59M est
EPS: -1.01 vs -0.19 est

TeraWulf expects a tenant for their Kentucky data center in Q2 2026 https://t.co/dzAHTYgwld pic.twitter.com/lfdjrewL0c

— Blockspace (@blockspace) May 8, 2026

Following the earnings announcement, WULF stock dropped 2.6% on Friday. Despite this, the shares have risen over 105% since the start of the year and have gained more than 30% over the last month.

AI Infrastructure Takes the Lead

HPC revenue was bolstered by 60 megawatts of operational IT capacity at the Lake Mariner facility—one of the largest HPC campuses in North America—which is leased to Core42.

Additionally, TeraWulf is coordinating infrastructure development alongside Google and Fluidstack. New computing facilities, specifically CB-3, CB-4, and CB-5, are scheduled to become operational later in 2026.

CEO Paul Prager noted that the company entered 2026 with essential contracts, financing, and infrastructure secured, with management now focused on leveraging this base to generate long-term recurring revenue.

In October 2025, TeraWulf entered into a 25-year lease agreement with Fluidstack, which is backed by Google, representing approximately $9.5 billion in contracted revenue. This deal expanded upon a previous 10-year commitment.

The company’s Abernathy joint venture, a 168 MW HPC project under a 25-year lease, remains on schedule for completion in Q4 2026.

CFO Patrick Fleury stated that the firm’s capital structure is intended to match long-term financing with contracted cash flows. He noted that consistent AI infrastructure revenue could help mitigate the earnings volatility historically associated with Bitcoin mining.

TeraWulf finished the first quarter with roughly $3.1 billion in cash and restricted cash.

Power Sites Drive Expansion

Beyond the Lake Mariner site, TeraWulf is developing a national portfolio of power-advantaged locations.

This includes a recently acquired 480 MW site in Hawesville, Kentucky, a 300 MW project in Lansing, New York, and a 210 MW site in Morgantown, Maryland, which has the potential to expand to 1 gigawatt.

Prager described the company’s strategy as building a “power-advantaged platform” that stands out in a market where access to power is increasingly limited.

TeraWulf’s strategic shift aligns with broader industry trends. For instance, Riot Platforms reported $167.2 million in total revenue for Q1 2026, with its data center operations contributing $33.2 million to help offset declining Bitcoin mining income.

Core Scientific has also announced plans to sell over 2,500 Bitcoin to support AI expansion and improve liquidity.

Other firms, including MARA Holdings, Hive, Hut 8, and Iren, have also begun transitioning their mining operations to support high-performance computing and AI workloads.

TeraWulf’s upcoming operational milestones for 2026 remain the completion of its CB-3, CB-4, and CB-5 computing buildings.