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TeraWulf shares drop after $446M loss as AI shift grows

TeraWulf pivots to AI as Bitcoin mining revenue plunges 50% in Q1 2026.

  • Publicly traded Bitcoin miner TeraWulf reported a Q1 2026 net loss of more than $427 million, causing its shares (WULF) to fall 2.6%.
  • 60% of the firm’s $34 million quarterly revenue now comes from its expansion into AI high-performance compute, a segment that grew 117%.
  • Bitcoin mining revenue shrank by 50% quarter-over-quarter to approximately $13 million, as the firm shifts focus to contracted, recurring revenue streams.
  • The company’s strategic pivot is backed by long-term deals, including an October Google-backed expansion of a multi-billion dollar commitment, detailed in reports.
  • Despite the quarterly loss, WULF stock has gained more than 30% in the past month and over 105% year-to-date.

Shares in Bitcoin mining firm TeraWulf (WULF) fell 2.6% after it posted a staggering net loss exceeding $427 million for Q1 2026, a dramatic increase from its $61.4 million loss in the same quarter last year. The firm’s first-quarter revenues totaled $34 million, revealing a company in the midst of a profound strategic transformation.

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Consequently, 60% of that revenue, or $21 million, now comes from its expansion into AI high-performance computing, marking a 117% increase from the prior quarter. Meanwhile, its core Bitcoin mining revenues contracted by 50% over the same period to roughly $13 million, underscoring the shift. “The first quarter of 2026 was defined by execution,” said CEO Paul Prager, highlighting the conversion of the firm’s established platform into operating performance.

This commitment to HPC is anchored by significant long-term contracts, including an October deal backed by Google. That agreement expanded a prior 10-year, multi-billion dollar commitment into a 25-year lease worth about $9.5 billion in contracted revenues, as shown in available market data. The move signals a deliberate pivot away from the volatility of cryptocurrency mining.

Looking ahead, executives expect much more stable, contracted revenue from its AI compute deals. “The first quarter reflects a more stable, contracted revenue model,” stated CFO Patrick Fleury, who anticipates reduced exposure to Bitcoin’s historical price swings. The firm plans to continue repurposing parts of its mining infrastructure to support these higher-value HPC workloads.

Despite the day’s decline, WULF shares remain robust, up over 30% in the past month and having gained more than 105% since the start of the year. The company concluded the quarter with a strong financial position, holding around $3.1 billion in cash and cash equivalents to fund its ambitious transition.

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