TeraWulf Inc. (Nasdaq: WULF) develops and operates next-generation digital infrastructure, primarily focused on Bitcoin mining and high-performance computing (HPC), powered predominantly by zero-carbon energy sources such as hydroelectric and nuclear power. The company’s Lake Mariner facility in Upstate New York plays a central role in its operations.

In the first quarter of 2025, TeraWulf experienced a notable decline in its financial performance. The company reported GAAP revenues of $34.4 million, down from $42.4 million in the first quarter of 2024, representing a 19% year-over-year drop. Self-mined Bitcoin decreased to 372 coins from 1,051 year over year, reflecting a decline in the company’s operational output due to various market challenges.

The cost of revenue (excluding depreciation) rose to $24.6 million in the first quarter of 2025, marking a 70% increase from $14.4 million in the same quarter of the previous year. The power cost per Bitcoin mined surged to $66,084, compared to $15,501 in the first quarter of 2024, as a result of rising network difficulty and elevated power prices driven by extreme weather conditions. Adjusted EBITDA for the quarter was negative $4.7 million, a significant decrease from $32 million reported in the prior year.

The company’s cash and cash equivalents amounted to $218 million at the end of the first quarter, down from $274 million at the end of the previous quarter. TeraWulf’s total liabilities stood at $670 million, primarily driven by $500 million in convertible senior notes with a cash interest rate of 2.75% due in 2030.

For the outlook, TeraWulf anticipates operational challenges will continue to influence financial performance in the near term. The company has guided that power costs are expected to decrease to approximately $0.05 per kilowatt-hour for the remainder of 2025, which could improve profit margins as electricity prices stabilize. Additionally, TeraWulf is on track to bring online HPC hosting capacity in subsequent quarters, with expectations for revenue generation beginning in Q2 2025 as infrastructure comes online.

Also noteworthy, TeraWulf has initiated a new At-the-Market (ATM) program to raise additional equity funds. The company has authorized a $200 million share repurchase program to enhance shareholder returns, despite challenging conditions in the Bitcoin mining sector. TeraWulf’s operational capacity at Lake Mariner has increased to 245 megawatts, with a self-mining hash rate of 12.2 exahash per second, reflecting a 52.5% year-over-year increase.

In summary, while TeraWulf’s revenue and profit metrics indicate a decline in Q1 2025, shifts in cost management and new revenue streams from HPC activities may position the company for stabilization and potential recovery in the coming quarters.