TeraWulf Inc. (WULF) reported a significant miss on its fourth-quarter 2025 earnings, driven by a sharp decline in Bitcoin mining revenue. The company posted a Q4 loss of $1.66 per share, far exceeding the analyst consensus for a loss of $0.16 per share and widening from a loss of $0.21 per share in the same quarter a year prior.
Revenue for the quarter totaled $35.8 million, a drop from $50.6 million in Q3 2025 and below analyst estimates of $44.1 million. Of this total, $26.1 million came from digital assets (primarily Bitcoin mining), while $9.7 million was generated from high-performance computing (HPC) leasing. The earnings miss was directly attributed to Bitcoin's price decline, which fell from around $125,000 in early October 2025 to near $60,000 by February 2026. At the time of reporting, BTC was trading at $67,982, below the estimated average mining cost of $87,310.
Despite the weak Q4, full-year 2025 revenue showed growth, rising to $168.5 million from $140.1 million in 2024. The company's non-GAAP adjusted EBITDA for the year remained negative at $23.1 million. TeraWulf ended the year with cash and restricted cash totaling $3.72 billion.
The company's strategic pivot to AI and HPC infrastructure is a central focus. TeraWulf has secured 522 megawatts of long-term IT leases, representing approximately $12.8 billion in contracted future revenue. This pipeline is backed by more than $6.5 billion in long-term financing. "We enter 2026 with 522 critical IT MW of contracted HPC capacity and a gross 2.9-GW multi-regional platform designed for long-term expansion," said CEO Paul Prager.
Expansion plans are aggressive. TeraWulf controls a platform in New York and Texas and plans to acquire sites in Kentucky (MISO) and Maryland (PJM) in 2026. These additions are expected to add 1.5 GW of capacity, more than doubling current operations and bringing total owned platform capacity to approximately 2.8 GW across five sites. The company aims to support the delivery of 250–500 MW of critical IT capacity annually, scaling with AI demand. Construction is ongoing at its Lake Mariner (NY) and Abernathy (TX) sites.
The market reaction was mixed. WULF stock fell 0.22% to $17.88 following the earnings release and dropped a further 3.69% in pre-market trading to $17.22, as investors weighed the near-term mining weakness against the long-term AI transformation. The company's market cap stood at $7.35 billion.
