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TeraWulf's Q1 loss widens to $61.4 million amid rising costs

TeraWulf's Q1 loss widens to $61.4 million amid rising costs

GrafaGrafa2025/05/12 13:30
By:Mahathir Bayena

TeraWulf, a Bitcoin (CRYPTO:BTC) mining firm, reported a net loss of $61.4 million for the first quarter of 2025, a significant deterioration from the $9.6 million loss in the same period last year.

The company's revenue decreased to $34.4 million from $42.4 million in Q1 2024, while the cost of revenue surged to $24.5 million, up from $14.4 million.

This increase meant that the cost of revenue accounted for 71.4% of TeraWulf's total income from operations, more than double the 34% recorded in the prior-year quarter.

TeraWulf attributed the revenue decline to reduced Bitcoin block rewards post-halving (from 6.25 BTC to 3.125 BTC per block), increased network difficulty, and severe weather at its New York mining facility.

According to InvestingPro data, the company's stock experienced an 8.48% drop in premarket trading, settling at $3.02.

The company’s actual EPS of -$0.16 was below the forecasted -$0.04, marking a negative surprise of 300%. Revenue also fell short by approximately 25%, with actual figures at $34.4 million against a forecast of $46.07 million.

The challenges TeraWulf faces mirror the broader struggles within the Bitcoin mining industry, which is grappling with reduced block rewards, rising operating costs, and macroeconomic uncertainties such as geopolitical trade tensions.

U.S. President Donald Trump's trade tariffs have raised concerns among mining companies and analysts that import duties will increase the cost of essential hardware, potentially disadvantaging U.S.-based miners.

In response to ongoing tariff negotiations, miners sold 40% of their mined BTC in March 2025, reversing the trend of accumulation.

TeraWulf, however, has been focused on strategic growth by expanding its power capacity and developing high-performance computing (HPC) infrastructure. The company maintains strong liquidity with a current ratio of 5.43.

Despite the current financial challenges, TeraWulf is focused on building a high-value, durable business that is designed to scale with demand and deliver long-term returns.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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