Bitcoin News Today: TeraWulf Posts $18.4M Q2 Loss as Bitcoin Mining Costs Rise and AI Expansion Accelerates

TeraWulf, a Nasdaq-listed Bitcoin miner, posted a $18.4 million net loss in the second quarter of 2025, bringing its first-half loss to $79.8 million—nearly quadruple the loss recorded in the same period the previous year. Despite a 34% year-over-year increase in Q2 revenue to $47.6 million, the company’s bottom line was weighed down by rising operational costs, large stock-based compensation expenses, and depreciation related to new infrastructure [1]. The average cost to mine a Bitcoin also surged to $45,555 from $22,954 a year earlier, driven by unfavorable power economics since the April Bitcoin halving [1].

To offset the volatility of Bitcoin mining, TeraWulf is aggressively investing in its Lake Mariner facility in Barker, New York, transforming it into a high-performance computing hub for artificial intelligence clients. The site, previously a coal-fired power station, is now connected to a nearly zero-carbon grid and can scale to a maximum of 750 MW of capacity [1]. The company inked a 10-year agreement in late 2024 with Core42, the U.S. division of Abu Dhabi-based G42, to deliver 72.5 MW of data-center capacity in phases through early 2026 [1]. This strategic move is part of a broader industry trend in which miners seek to diversify revenue streams and reduce exposure to the unpredictable nature of cryptocurrency markets.

CEO Paul Prager stated that the company is making “remarkable progress” toward delivering the contracted power capacity and is exploring further expansion at the Lake Mariner campus. CFO Patrick Fleury emphasized that revenue from the Core42 deal will start to flow in the third quarter, calling it “a key inflection point” for the company’s financial trajectory [1]. TeraWulf recently divested its 25% stake in the Nautilus nuclear-powered mining facility in Pennsylvania for $85 million in cash and equipment, a move that provided capital for its AI hosting initiative [1].

The miner’s balance sheet reflects the challenges of its transition. TeraWulf ended the quarter with $90 million in cash and Bitcoin, along with $500 million in convertible notes due in 2030. While the firm has financial runway, the path to profitability will require careful capital management as it scales the Lake Mariner project and awaits the return from its AI hosting contracts [1].

The company, founded in 2021 by energy-industry veterans Paul Prager and Nazar Khan, went public via a reverse merger with IKONICS. TeraWulf has positioned itself as one of the few U.S.-based Bitcoin miners with a strong focus on zero-carbon energy [1]. Its dual focus on Bitcoin mining and AI hosting is part of a broader strategy to build a more resilient business model in a sector marked by sharp swings in profitability.

Source: [1] TeraWulf Losses Deepen As Bitcoin Miner Ramps Up AI Hosting Bet

(https://financefeeds.com/terawulf-losses-deepen-as-bitcoin-miner-ramps-up-ai-hosting-bet/)

[2] TeraWulf Reports Second Quarter 2025 Results: Revenue Surges, Loss Widens

(https://mlq.ai/news/)