Key Takeaways
- The decline was largely attributed to the April 2024 Bitcoin halving, which cut mining rewards from 6.25 BTC to 3.125 BTC per block,
- Revenue from self-mined bitcoin totalled $34.4 million, down from $56.5 million a year earlier.
Leading Bitcoin miner TeraWulf reported $34.4 million in revenue for Q1 2025, marking a 19% year-over-year drop as the company faced multiple operational headwinds. The decline was largely attributed to the April 2024 Bitcoin halving, which cut mining rewards from 6.25 BTC to 3.125 BTC per block, combined with rising network difficulty and severe winter weather in upstate New York.
The company’s cost of revenue, excluding depreciation, surged 70% to $24.6 million from $14.4 million in the same period last year, largely driven by higher infrastructure utilization and temporary spikes in power prices during the Polar Vortex. As per the earnings report, the Revenue took a downward turn from $34.4 million from $42.4 million in the same period of 2024. Revenue from self-mined bitcoin totalled $34.4 million, down from $56.5 million a year earlier.
TeraWulf mined 372 BTC in the quarter at its Lake Mariner Facility, a decrease linked to both the halving and the strategic sale of its Nautilus Cryptomine stake in October 2024. Power cost per bitcoin soared to $66,084 compared to $15,501 in Q1 2024.
The company posted an adjusted EBITDA loss of $4.7 million, in contrast to $32 million in Q1 last year. Net income data for Q1 2025 has not been disclosed, but in Q1 2024, TeraWulf had reported a net loss of $9.6 million.
TeraWulf’s operational scale continued to expand, with self-mining capacity rising 52.5% year-over-year to 12.2 EH/s. However, rising operational expenses meant that cost of revenue accounted for 71.4% of income from operations, more than double the 34% rate from the prior-year quarter.
As of March 31, 2025, TeraWulf held $219.6 million in cash and bitcoin. Total outstanding debt stood at approximately $500 million, consisting of 2.75% convertible senior notes due in 2030.
As per the official statement, the company expects HPC hosting revenue to begin in Q2 as new data halls come online. Data halls are secured, enclosed spaces with controlled access to protect mining equipment.
In the official press release, CEO Paul Prager reaffirmed the company’s focus on scaling sustainable infrastructure and securing new contracts to achieve up to 250 MW of contracted HPC capacity by the end of 2026. Further, Chief Financial Officer Patrick Fleury noted that that TeraWulf returned $33 million to shareholders in Q1 through share repurchases.
