TeraWulf HPC Revenue Hits $63M as Bitcoin Mining Falls 69%

TeraWulf HPC sales nearly double from June

In the official earnings announcement, CEO Paul Prager said Lake Mariner was delivering contracted capacity and generating revenue. The company reported 102 megawatts of operating critical IT capacity there, with another 336 megawatts under construction.

The June-quarter filing recorded $31.932 million of HPC lease revenue in $44.767 million of total revenue. HPC already supplied 71% of sales then. September’s result therefore extends an established change in the business rather than marking its first quarter with a computing majority.

The comparison also clarifies the mining headline. June digital asset revenue was $12.835 million, slightly below September’s $13.244 million. The sharp mining decline is measured against the same quarter of 2025, not the immediately preceding three months.

June’s accounting notes describe HPC revenue as including certain services and costs passed through to customers, generally with a markup. The reported total should consequently be read as recognized lease-business revenue, without assuming every dollar represents an identical stream of base rent.

The wider sector shows a similar change. IREN’s latest results recorded $200 million in AI Cloud revenue against $28 million from mining. Its shift toward AI services follows a different operating model, so the two companies’ revenue categories are not interchangeable.

Bitcoin mining falls while warrant gains lift profit

TeraWulf’s September Form 10-Q shows digital asset revenue declining from $43.375 million a year earlier to $13.244 million. That is a 69.5% drop using the unrounded figures. Total revenue increased approximately 51%.

The filing says two mining buildings were repurposed or taken out of service during the first nine months to support HPC development. Quarterly bitcoin production fell to 186 from 377 a year earlier, while the average bitcoin price received also declined.

Revenue growth did not eliminate operating losses. The earnings release reports approximately $709.9 million of net income attributable to TeraWulf, an $88.2 million operating loss and negative adjusted EBITDA of $12.8 million.

A $728.4 million noncash gain from revaluing Google warrants helped produce the headline profit. That accounting movement does not represent customer rent or cash collected for computing services. The distinction is essential when comparing operating progress with reported net income.

The practical implication is that a larger computing business and a large quarterly profit answer different questions. Recognized sales show facilities earning revenue; the operating result shows expenses still exceeded revenue under standard accounting. Neither figure alone establishes the economics of every future campus.

Lake Mariner delivery becomes the next earnings test

CB-4 remains targeted for phased delivery and rent commencement in the fourth quarter, while CB-5 phased delivery is targeted to begin in early 2027. The company says construction remains within its previously disclosed cost guidance. These are delivery targets, rather than confirmation that all planned capacity is operating.

Separately, the November 4 Google backstop announcement concerns anticipated project financing for the Justified campus and its existing Anthropic lease. As detailed in our coverage of the credit-support agreement, the approximately $19 billion figure covers expected contracted revenue over 20 years.

That long-term contract value should not be added to September’s quarterly sales. Construction, delivery and revenue recognition occur on different schedules. The financing backstop improves the project’s contractual framework without establishing that future rent has already been earned.

TeraWulf’s reported $2.4 billion liquidity figure also includes restricted cash. It should not all be treated as freely spendable money, just as an expanded credit commitment is different from cash already drawn.

Meanwhile, Alternative.me’s Bitcoin sentiment index stood at 25, or Extreme Fear, versus 28 a day earlier when checked November 7 around 05:00 UTC. It measures crypto sentiment, not demand for TeraWulf’s computing capacity.

The next evidence will be phased handovers, rent commencement and subsequent operating results. Final delivery outcomes and the revenue contribution from capacity still under construction remain unconfirmed.