0001083301-25-000061
SEC filingTeraWulf's Q2 2025 revenue rose 34% YoY to $47.6M, driven by higher bitcoin prices, but net loss widened to $18.4M due to increased costs and halving effects.
In Q2 2025, TeraWulf generated revenue of $47.6 million, a 34% increase from $35.6 million in Q2 2024. The growth was driven by a 50% rise in the average bitcoin price to $98,434, partially offsetting a 31% decline in bitcoin mined to 485 coins. The decline in production resulted from the April 2024 halving, which reduced block rewards by 50%, and a 49% increase in global network difficulty. Cost of revenue (exclusive of depreciation) rose 59% to $22.1 million, reflecting higher power costs and expanded mining capacity. Power costs averaged $0.053 per kWh, up from $0.037, while demand response proceeds increased to $3.1 million. Net loss widened to $18.4 million from $10.9 million, impacted by higher operating expenses, depreciation, and loss on asset disposals. Adjusted EBITDA fell to $14.5 million from $19.5 million, with the cost to mine one bitcoin rising to $45,608 from $22,994.
TeraWulf's sole operating segment is bitcoin mining, with all revenue derived from self-mining at the Lake Mariner Facility. The prior year period included contributions from the Nautilus Cryptomine Facility, which was sold in October 2024. The company's operational hashrate grew to 12.2 EH/s from 8.0 EH/s, supported by a fleet of 70,300 miners with an average efficiency of 17.7 J/TH. The miner fleet is predominantly newer models (S21 Pro and S21), contributing to improved efficiency. However, the halving and elevated network difficulty compressed margins, as evidenced by the cost-to-mine ratio rising to 46.4% of bitcoin value from 34.8%. The company is strategically transitioning capacity to HPC hosting, with 72.5 MW of data center infrastructure dedicated to GPU compute workloads under lease agreements with Core42, expected to generate revenue in H2 2025.
Management expects the Lake Mariner Facility to reach 500 MW of total capacity in the near term, with 245 MW currently energized for bitcoin mining. The HPC colocation initiative with Core42 is a key growth driver, with revenue recognition anticipated as data halls come online in the second half of 2025. The company is actively expanding participation in demand response programs, which provided $5.9 million in proceeds during H1 2025. Bitcoin mining economics remain subject to price volatility and network difficulty, but the company's low-cost power (NYPA PPA for 90 MW) and efficient fleet provide a competitive advantage. Capital expenditures for infrastructure buildout are expected to continue, funded by cash, bitcoin sales, and prepaid rent ($90 million received from Core42). TeraWulf is not providing specific financial guidance, but the shift toward HPC hosting is expected to diversify revenue and improve margins over the long term.
Cash and cash equivalents decreased sharply from $274.1M at December 31, 2024 to $90.0M at June 30, 2025, primarily due to $213.6M in capital expenditures and $33.3M in share repurchases, partially offset by $90.0M in prepaid rent received from HPC leases and $1.7M in operating cash flow. The company also held $1.4M in restricted cash. Total debt stood at $488.7M, consisting solely of $500M 2.75% convertible senior notes due 2030, net of $11.3M in issuance costs. Shareholders' equity was $174.3M, down from $244.4M at year-end 2024 due to share repurchases and net losses.
The company had no material purchase commitments disclosed for miners or other supplies. However, significant contractual obligations include operating lease liabilities with undiscounted cash flows of $20.7M and finance lease liabilities of $0.8M. Additionally, the company recorded a deferred rent liability of $90.0M related to prepaid rent from HPC leases, of which $47.7M is current. Contingent consideration liabilities from the Beowulf E&D acquisition totaled $30.0M at fair value, which may increase if earnout milestones are met.
TeraWulf operates as a single reportable segment focused on digital currency mining and HPC data center operations. No segment-level breakdown is provided; all revenue is generated from the Lake Mariner Facility in New York. The company also earned power curtailment credits of $5.9M in H1 2025, recorded as a reduction to cost of revenue.
Net loss of $79.8M was significantly larger than operating cash flow of $1.7M, indicating weak cash generation relative to losses. The primary cash outflow in operations stemmed from a large deferred rent liability increase of $90.0M (a non-cash item), which offset operating losses. Capex intensity remained high at $213.6M, more than 100x operating cash flow. No free cash flow was reported. Share repurchases of $33.3M consumed cash, while financing activities were net negative due to debt repayments and tax withholding payments. The working capital swing of $90.0M in deferred rent is a notable anomaly.