TeraWulf's bitcoin mining revenue drops 69% as the company pivots to AI data centers

TeraWulf, the Nasdaq-listed company (ticker WULF) that built its business on bitcoin mining, is now mostly in the business of renting out data center space to AI firms. Its third-quarter earnings, released Friday, make the shift plain: digital asset revenue fell to $13.2 million from $43.4 million a year earlier — a drop of about 69% — while high-performance computing (HPC) lease revenue jumped 774% to roughly $63 million, according to figures reported by The Block from the company's earnings release.

Total revenue reached $76.2 million, up 51% year over year, with HPC leasing now accounting for 83% of the top line versus 14% a year ago.

The headline net income number — $709.9 million attributable to shareholders — is not operating profit. TeraWulf said it includes a $728.4 million non-cash gain from changes in the fair value of warrant and derivative liabilities. Strip that out and the picture reverses: the company reported an operating loss of $88.2 million, widened from $24.7 million a year earlier, and adjusted EBITDA of negative $12.8 million.

The pivot centers on a 20-year lease with AI developer Anthropic for about 401 MW of capacity at TeraWulf's Justified campus in Kentucky, which the company values at roughly $19 billion in contracted revenue over the initial term. Earlier last week, TeraWulf said it had secured a Google credit backstop for project financing tied to that lease and signed an engineering and construction agreement with Fluor Enterprises covering three buildings, with first phases slated for late 2027.

Key facts

• Q3 bitcoin mining revenue: $13.2M, down ~69% from $43.4M a year earlier (The Block, citing TeraWulf's earnings release).
• HPC lease revenue: ~$63M, up 774% from $7.2M; now 83% of total revenue (same).
• Total revenue: $76.2M, up 51% YoY; net income $709.9M including a $728.4M non-cash warrant/derivative gain (same).
• Operating loss: $88.2M (vs. $24.7M); adjusted EBITDA negative $12.8M (same).
• Anthropic: 20-year lease, ~401 MW, ~$19B contracted; Google credit backstop and Fluor EPC deal announced; first phases late 2027 (same).
• Cash, equivalents and restricted cash: ~$2.4B at quarter-end. Shares up 8.1% to $10.90 pre-market Friday (same).

The real-world read

TeraWulf is quietly becoming an AI landlord, not a miner — and the near-$710 million net income invites a misread. That figure is dominated by a $728.4 million non-cash accounting gain on warrants and derivatives; the operating business lost $88.2 million and burned through negative EBITDA. A stock up 8.1% on an operating loss is pricing the Anthropic pipeline, not current results.

Worth watching: the $19 billion Anthropic figure and the Muskie expansion to 1 GW are TeraWulf's own projections, not booked revenue, and the Muskie increase is "pending regulatory approval." The Justified buildings don't deliver until late 2027. CEO Paul Prager's framing — "a contracted path to a gigawatt" — is the optimistic read of contracts that still depend on construction, financing drawdowns and permits landing as planned.

Opinion, and whose

Prager (TeraWulf chairman and CEO) cast the quarter as execution across three sites — Lake Mariner generating revenue, Justified funded and framed, Muskie on a path to a gigawatt. That is the company's characterization. The 774% HPC growth and 69% mining decline are reported facts; the $19B contract value and gigawatt target are forward-looking company estimates.

Sources

• The Block (reputable secondary), "TeraWulf's bitcoin mining revenue falls 69%…," 2026-11-06 — all financial figures, segment breakdown, Anthropic/Fluor/Google details and the Prager quote, reported from TeraWulf's Q3 earnings release (the company's own primary disclosure). Not sponsored.

This is news, not financial advice.