TeraWulf Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.56%.
Did WULF Beat Earnings? Q1 2025 Results
TeraWulf delivered a sharply disappointing first quarter, missing on both the top and bottom lines as the cumulative weight of the April 2024 Bitcoin halving and a Polar Vortex-driven power cost spike in Upstate New York took a severe toll on results. The bitcoin miner posted revenue of $34.41 million, falling 18.9% year-over-year and coming in 17.82% below the $41.87 million consensus, while its loss per share of $0.16 missed the $0.09 estimate by 84.54%. The operational damage was stark: self-mined bitcoin collapsed to 372 coins from 1,051 a year ago, power cost per bitcoin surged to $66,084 from $15,501, and adjusted EBITDA swung to negative $4.70 million from positive $31.98 million. Analysts have since cut their full-year EPS forecasts substantially in response. Still, management is pivoting aggressively toward high-performance computing hosting, with HPC revenue expected to begin in Q2 2025 as its 72.5 MW buildout for anchor tenant Core42 ramps, targeting 200 to 250 MW of contracted HPC capacity by year-end 2026.
- April 2024 Bitcoin halving reduced block rewards by 50%
- Rising network difficulty compressed mining economics
- Polar Vortex extreme winter weather caused temporary power price spike to $0.081/kWh in Q1 2025
- Higher average bitcoin price partially offset volume declines (weighted-average ~$92,600 vs ~$53,750 in Q1 2024)
- Strategic divestiture of Nautilus Cryptomine facility in October 2024 reduced mining capacity
- Stock-based compensation expense of $38.7 million significantly impacted SG&A
“TeraWulf continues to advance its strategy of developing scalable, sustainable infrastructure for both Bitcoin mining and high-performance computing. As outlined during our fourth quarter 2024 earnings call, our key priorities for 2025 include energizing Miner Building 5 and deploying our upgraded mining fleet, delivering Core42's contracted 72.5 MW of HPC capacity on schedule, securing financing for our initial HPC data center buildout, and signing additional customers to reach between 200 and 250 megawatts of contracted HPC capacity by the end of 2026.”
Terawulf CEO, on the earnings call
Forward Guidance & Outlook
TeraWulf expects HPC hosting revenue to begin in Q2 2025 as data halls come online, with 2.5 MW (WULF Den) targeted for Q2, 20 MW (CB-1) for Q3, and 50 MW (CB-2) for Q4 2025. The company targets 200-250 MW of contracted HPC capacity operational by year-end 2026. For bitcoin mining, the company projects 225 MW and 12 EH/s for Q2-Q4 2025, with estimated power costs of $0.05/kWh for the remainder of 2025. Management estimates approximately 1,529 BTC to be mined in Q2-Q4 2025 and 1,901 BTC for the full fiscal year. Total annual fixed operating expenses are guided at $74-$84 million, comprising SG&A of $40-$45 million, operating expenses of $20-$25 million, and convertible notes interest of approximately $14 million. The company plans to execute HPC project financing targeting approximately 70% loan-to-cost at SOFR + ~400 bps by mid-2025. Total HPC capex for the initial 72.5 MW is estimated at $430 million. The company expects substantial unallocated cash of approximately $158 million after all 2025 capital allocation activities.
WULF YoY Financials
WULF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.