TeraWulf, a publicly traded US digital infrastructure firm, fell short of fourth-quarter earnings expectations as its mining revenue declined alongside weaker Bitcoin prices in late 2025.
The company reported a Q4 loss of $1.66 per share, compared with a $0.21 per-share loss a year earlier. Analysts surveyed by Yahoo Finance had projected a narrower loss of $0.16 per share.
Revenue for the quarter ended Dec. 31 came in at $35.8 million, including $26.1 million from digital asset mining and $9.7 million from high-performance computing (HPC). That marked a drop from $50.6 million in the third quarter and missed analyst expectations of $44.1 million.
For the full year 2025, TeraWulf’s revenue increased to $168.5 million from $140.1 million in 2024. The company also pointed to $12.8 billion in signed AI and HPC contracts, signaling anticipated growth into 2026.
“We are advancing build schedules and optimizing design to support next-generation AI workloads at scale,” said Chief Technology Officer Nazar Khan.
Expansion plans in Kentucky and Maryland
TeraWulf said it intends to significantly scale its infrastructure footprint in 2026 through the acquisition of a site in Kentucky (MISO region) and a planned purchase in Maryland (PJM region).
The company expects these additions to contribute 1.5 gigawatts of capacity, more than doubling its existing platform and bringing total owned capacity to roughly 2.8 gigawatts across five sites.
The combined sites create a multi-year development pipeline capable of supporting 250–500 megawatts of critical IT capacity annually, positioning TeraWulf to scale alongside rising AI demand while maintaining disciplined capital allocation and credit-backed agreements, the company said.
“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,” CEO Paul Prager stated.
Bitcoin mining firms have faced mounting challenges as Bitcoin slid from around $125,000 in early October to roughly $60,000 by February 2026, according to data from TradingView.
At $67,982 at the time of writing, Bitcoin remained well below the estimated average cost to mine a single coin — about $87,310 — based on figures from MacroMicro.
The downturn has increased pressure on miners to diversify into AI and high-performance computing, accelerating a broader industry shift toward data center operations.
