TeraWulf's bitcoin mining revenue fell about 69% in the third quarter, while high-performance computing (HPC) leasing now makes up most of its revenue. The company also reported an operating loss despite almost $710 million in net income.
TeraWulf's bitcoin mining revenue fell to $13.2 million in the third quarter from $43.4 million a year earlier, a decline of about 69%. Over the same period, the Nasdaq-listed company booked $63 million in HPC lease revenue, up 774% from $7.2 million.
Total revenue came to $76.2 million, up 51% year over year, according to the company's earnings release. HPC leasing accounted for 83% of that figure, compared with 14% a year earlier.
Net income includes a non-cash gain
TeraWulf reported $709.9 million in net income attributable to shareholders for Q3. That figure includes a $728.4 million non-cash gain from changes in the fair value of warrant and derivative liabilities.
However, the operating loss widened to $88.2 million from $24.7 million a year ago, and adjusted EBITDA fell to negative $12.8 million.
Anthropic deal and data center expansion
As of Sept. 30, TeraWulf had 102 MW of critical IT capacity generating revenue at its Lake Mariner site in New York, with construction underway on another 336 MW. The company expects the latest data center building there to start generating rent in the fourth quarter and another in early 2027.
TeraWulf previously agreed to a 20-year lease with Anthropic for about 401 MW of critical IT capacity at its Justified campus in Kentucky. The agreement covers approximately $19 billion in contracted revenue over its initial term.
Earlier this week, TeraWulf announced a Google credit backstop for project financing in support of that lease, plus a definitive construction agreement with Fluor Enterprises covering three data center buildings. The first phases are scheduled for delivery in late 2027.
At its Muskie campus in Kentucky, contracted power capacity has increased from 500 MW to 1 GW, pending regulatory approval. The company targets another 250 MW to 500 MW of contracted critical IT capacity each year. It also held about $2.4 billion in cash, cash equivalents, and restricted cash at quarter-end.
TeraWulf shares were up 8.1% at $10.90 in pre-market trading on Friday after the release.
Source: The Block
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