Bitcoin miner TeraWulf posted a sharp rebound in the third quarter, nearly doubling its year-over-year revenue as the company benefited from Bitcoin’s price surge and growing exposure to artificial intelligence infrastructure.
Key Takeaways:
- TeraWulf’s Q3 revenue jumped 87% to $50.6 million, fueled by higher Bitcoin prices and growing AI infrastructure income.
- The miner produced fewer Bitcoins but offset the decline with an average BTC price of $114,390.
- TeraWulf is diversifying into AI and data hosting, securing multi-billion-dollar deals with Fluidstack and Google.
In its Q3 earnings report released Monday, the US-based company said total revenue rose 87% to $50.6 million, driven largely by higher Bitcoin prices and additional income from high-performance computing (HPC) leasing. Of that total, $43.4 million came from “digital asset revenue.”
TeraWulf Offsets Lower Bitcoin Output With Higher Prices, Boosting Revenue
TeraWulf mined 377 Bitcoin during the quarter, down from 555 a year earlier, but compensated with stronger pricing, the average Bitcoin price during the period was $114,390, compared with $61,023 in Q3 2024.
“The increase in revenue was primarily due to higher average Bitcoin prices, partially offset by a decrease in Bitcoin mined,” the company said.
The firm also attributed the results to expanded mining capacity and the start of AI-related lease revenue.
Following the April 2024 halving that cut block rewards, several miners, including TeraWulf, have begun repurposing part of their operations for AI and high-compute workloads to diversify income streams.
CEO Paul Prager said the company remains “squarely focused on execution while advancing the next phase of growth for 2027 and beyond.”
He highlighted an expanded partnership with Fluidstack and Google at TeraWulf’s Lake Mariner site in New York, with additional development underway at the Abernathy joint venture in the Southwest Power Pool.
To support its data center build-out, TeraWulf announced a $3.2 billion senior secured notes offering in October and signed three 10-year lease deals worth $6.7 billion with Fluidstack for AI infrastructure hosting.
Shares of TeraWulf (WULF) rose as much as 6% on Monday to $14.85 before paring gains to close at $14.30, up 0.49% for the day.
The strong quarterly performance underscores how miners are adapting to Bitcoin’s shifting economics, balancing AI hosting expansion while still riding the momentum of a stronger BTC market recovery.
Bitcoin Mining Profitability Hits Multi-Month Lows
As reported, Bitcoin miners are facing mounting pressure as profitability plunges to its lowest level in months, driven by rising power costs, declining Bitcoin prices, and reduced block rewards following April’s halving.
The key profitability metric, known as hash price, has dropped to around $42 per PH/s, nearing break-even levels that threaten smaller operations and squeeze industry margins.
The downturn has rippled across the supply chain, with hardware sales slowing and equipment manufacturers struggling as miners delay purchases or cancel orders.
Some firms, like Bitdeer, have turned to self-mining, while others are pivoting to AI and high-performance computing (HPC) to capitalize on stronger margins and steady demand.
Major US miners are leading this shift. Cipher Mining recently secured a $5.5 billion AI computing deal with Amazon Web Services, and IREN signed a $9.7 billion agreement with Microsoft for GPU-based AI services.
As Bitcoin’s total hashrate surpasses 1 zetahash per second (ZH/s) for the first time, the industry is increasingly transforming from traditional crypto mining toward powering the broader AI and data infrastructure economy.
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