TeraWulf reached a significant milestone in the transition from cryptocurrency mining to artificial intelligence (AI) infrastructure services in the first quarter of 2026. The company, which has been known for its bitcoin mining for years, reported that for the first time in this period, the income from high-performance computing (HPC) hosting activities exceeded the income from cryptocurrency mining.
Revenue distribution and operational transformation
According to the financial report, TeraWulf recorded $21 million in revenue from HPC hosting contracts in the first quarter of the year. In the same period, the income from bitcoin mining was approximately 13 million dollars. Thus, total revenue reached approximately 34 million dollars.
Companies such as TeraWulf, which has been operating huge energy-consuming bitcoin mining facilities for many years, have recently begun to keep up with changing market dynamics. AI companies in particular are willing to pay much higher payments for energy, cooling systems and ready-made data center space, changing the direction of the industry.
Paul Prager, the company’s CEO, commented, “This was the first quarter in which HPC leasing was meaningfully included in our financials.”
In an environment where profits in crypto mining are affected by fluctuations such as the price of bitcoin and energy costs, businesses with large-scale energy access are increasingly turning to providing infrastructure to AI and cloud computing companies.
According to estimates by the International Energy Agency, global electricity consumption of data centers is expected to almost double by 2030, reaching 945 terawatt-hours. The main driver of this increase is shown to be AI investments.
AI contracts and financial statement
TeraWulf’s business model is undergoing a major shift, with AI hosting services quickly becoming its main source of revenue. Contracts based on AI infrastructure provide more predictable and regular cash flow compared to mining.
“We are a company in transition. Our revenues are increasingly based on stable, contract computing agreements,” said Patrick Fleury, the company’s CFO. However, adapting to the new era was costly: TeraWulf announced a net loss of $427.6 million in the quarter due to data center expansion and AI infrastructure investments. This loss increased approximately sevenfold compared to the same period last year.
While total operating expenses for the quarter increased to approximately $200 million, a portion of this was comprised of asset impairment charges resulting from the contraction in the mining division.
On the investor side, AI infrastructure initiatives were received positively. According to Barron’s, TeraWulf shares have more than doubled in value since the beginning of the year. Going forward, the company plans to focus on AI infrastructure services rather than mining.
“As we continue to scale, we anticipate that our business model will increasingly be shaped by recurring, contractual revenues and that volatility in bitcoin mining will decrease,” Fleury said in the preliminary report.
Expansion and new goals
TeraWulf has reached 60 megawatts of active HPC capacity at its Lake Mariner facility in New York, where it provides services to AI cloud company Core42 under long-term agreements. The company is also developing new facilities in the same area, and customers include Fluidstack and Google.
Apart from New York, projects are also growing, especially in Kentucky and Maryland. While Kentucky has a power capacity of 480 MW, it is stated that this figure may increase to 1 GW in Maryland in the future.
According to TeraWulf’s publicly disclosed data, the total volume of long-term AI and HPC contracts covering 522 MW exceeded $12.8 billion. It was reported that at the end of the year, the company had $3.1 billion in cash and restricted cash in its safe. The company announced that it will continue to add new contracted capacity in the range of 250-500 MW every year.
The growth in AI infrastructure is also changing the balances in electricity markets. Electricity providers around the world are updating their forecasts upward in anticipation of increased demand for AI and data centers. It is stated that old bitcoin mining facilities provide quick solutions for AI projects thanks to their strong electrical connections.
