TeraWulf (NASDAQ:WULF) said its first-quarter 2026 results reflected a business shifting from Bitcoin mining toward contracted high-performance computing, or HPC, leasing revenue, as management highlighted progress at its Lake Mariner campus and continued demand for power-backed AI infrastructure.
Chairman and CEO Paul Prager said the quarter was “about execution,” with the company beginning to convert its platform of sites, contracts, capital and strategy into operating performance and recurring revenue. He said TeraWulf had 60 megawatts of critical IT capacity energized and generating revenue at Lake Mariner as of March 31, with HPC leasing contributing $21 million of revenue during the quarter.
“This is the first period where HPC leasing is meaningfully reflected in our financials,” Prager said. He added that TeraWulf is deliberately transitioning portions of its legacy mining footprint to support higher-value HPC workloads. “Mining served its purpose,” he said, citing its role in helping the company build infrastructure, monetize power and develop operating expertise.
HPC Revenue Ramps as Mining Declines
Chief Financial Officer Patrick Fleury said first-quarter revenue totaled $34 million, down from $35.8 million in the fourth quarter of 2025, primarily due to lower Bitcoin production. HPC lease revenue increased 117% sequentially to $21 million from $9.7 million in the prior quarter.
Fleury said CB2 at Lake Mariner achieved “ready for service” status in March, commencing the lease with Core42 and bringing all 60 critical megawatts of capacity for that customer into service. He said the company expects its revenue mix to continue shifting toward stable contracted HPC revenue as additional buildings come online in the second, third and fourth quarters of 2026.
Cost of revenue, excluding depreciation, fell to $2.4 million from $18.9 million in the fourth quarter. Fleury attributed part of the decline to demand response proceeds, which are recorded as a reduction in cost of revenue and increased to $14.1 million in the first quarter from $4.4 million in the fourth quarter.
The company reported a GAAP net loss of $427.6 million, compared with a net loss of $126.6 million in the fourth quarter. Fleury said the wider loss was primarily driven by non-cash fair value adjustments tied to Google warrants and non-cash stock-based compensation. Adjusted EBITDA was negative $4.1 million, improving from negative $50.9 million in the fourth quarter.
As of March 31, TeraWulf had $3.1 billion of cash and restricted cash, $7 billion of total assets and $7.1 billion of total liabilities. Fleury said the parent entity had approximately $300 million of available unrestricted cash at quarter-end, increasing to approximately $1.5 billion after incorporating equity raised in April.
Lake Mariner Construction Continues
Chief Technology Officer Nazar Khan said execution at Lake Mariner continued to progress. The second data hall in CB2 came online during the quarter, completing the Core42 capacity. For the Fluidstack deployment, which includes CB3, CB4 and CB5, Khan said all major project timelines remained unchanged from the prior update.
CB3 remains on track for TeraWulf to complete its defined scope by the end of May, with the company coordinating with Fluidstack and Google on final energization and lease commencement. CB4 and CB5 remain on track for delivery in the third and fourth quarters of 2026, respectively.
Prager said customer-driven design refinements at Lake Mariner were not disruptions, but part of building infrastructure for sophisticated counterparties. “We are building to evolving hardware and tenant requirements, not in anticipation of them,” he said.
Kentucky, Maryland and Power Strategy
Prager said the company continues to expand its platform, including the Hawesville, Kentucky site, which he described as a large-scale campus with immediate power availability and significant expansion potential. He said TeraWulf remains in late-stage negotiations for a customer at the site and reiterated confidence that a customer would be in place in the second quarter.
Fleury said demand for near-term power remains strong and that TeraWulf is targeting 480 megawatts online in Kentucky in the second half of 2027. Subsequent to the quarter, the company repaid a $100 million draw on its bridge credit facility and terminated the facility. Fleury said a portion of the approximately $1.2 billion of equity raised year to date is expected to fund TeraWulf’s equity contribution to the Kentucky project.
In Maryland, Prager said the company is progressing the Morgantown acquisition, which remains subject to regulatory approval. He said TeraWulf expects a Federal Energy Regulatory Commission decision in the mid-summer timeframe. The site is attractive because of its location in a power-constrained region, he said, and the company intends to build a larger gas facility there while ensuring compliance with grid obligations.
Khan said the existing approximately 210 megawatts of operating capacity at Morgantown would continue bidding into the PJM market as peaker capacity. He said planned battery storage, gas generation and load would be incremental to the existing capacity.
Management Sees Power as Key Constraint
Prager said the broader AI build-out is increasingly constrained by power, including interconnection delays, transmission limits and the need for new generation. “The constraint is not GPUs, it is power,” he said. He described TeraWulf as “fundamentally a power company that builds digital infrastructure, not the other way around.”
Management said the company’s development strategy is focused on three paths to power: immediate access, as in Hawesville; “bring your own generation,” as pursued in Morgantown; and utility partnerships as interconnection queues are rationalized and prioritized.
During the question-and-answer session, Khan said utilities may have former generation sites or other locations where they want load but may also need new generation to accompany it. He said TeraWulf is having discussions across the country about helping bring both supply and load into utility territories.
Prager said demand remains strong from hyperscalers and AI compute platforms. He added that TeraWulf’s approach remains disciplined: “We do not build on speculation. We contract first, deploy capital second.”
Mining Footprint to Wind Down Over Time
Fleury said the company’s Bitcoin mining business continues to support the transition to HPC, including through demand response participation. He estimated TeraWulf is currently operating between five and six exahash and said the company does not plan to put significant additional capital into the business.
As buildings or power feeds are repositioned for HPC leasing, mining capacity is expected to decline gradually. Fleury said the company would likely be out of Bitcoin mining “certainly by the next halving,” while noting that mining still provides grid services and cash flow during the transition.
Looking ahead, Prager said the company is focused on delivering capacity, energizing megawatts and converting contracts into durable recurring cash flow. “That is what will define 2026,” he said.
About TeraWulf (NASDAQ:WULF)
TeraWulf, Inc (NASDAQ: WULF) is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.
One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.
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