TeraWulf's Data Center Business Surpasses Bitcoin Mining Revenue
TeraWulf's stock price fluctuated after the company reported an earnings miss. However, this did not deter investors as the data center business now accounts for a larger share of revenue than Bitcoin mining.
The high-performance computing (HPC) lease revenue from Core42 accounted for $21 million of TeraWulf's $34 million in total revenue during the first quarter of 2026. This represents 62% of the company's revenue, which is a significant increase from last year when HPC revenue was zero.
The company's pivot to data center infrastructure has led to improved cost structures. In contrast to last year's $24.6 million in cost of revenue for generating $34.4 million in digital asset revenue, TeraWulf spent only $2.4 million against $34 million in revenue this quarter.
TeraWulf's Chief Executive Paul Prager stated that the company 'entered the year with a fully established platform, sites, contracts, and capital, and are now converting that foundation into operating performance and recurring revenue.'