A vertically integrated U.S. developer and operator of digital infrastructure that hosts high-performance computing and AI workloads in its data centers while also running bitcoin-mining operations. Its two main campuses, Lake Mariner in New York and Abernathy in Texas, lease space to customers such as Fluidstack and Core42 on long-term contracts, with a third site planned at Cayuga. The company got its start in bitcoin mining and is now shifting its focus to hosting large-scale computing for outside customers.
HPC leasing becomes TeraWulf's primary revenue driver, but a $755.7M non-cash warrant charge drives a $939.9M net loss.
HPC leasing overtook bitcoin mining as TeraWulf's main business. fell 6% to $44.8 million as a $34.8 million drop in mining revenue was nearly offset by $31.9 million in new HPC lease revenue, while a $755.7 million non-cash loss on Google Warrants pushed the net loss to $939.9 million. The company is now an HPC infrastructure play with $3.0 billion in liquidity, but its earnings are tethered to the fair value of its warrant liabilities.
Key takeaways
HPC lease reached $31.9 million in Q2 2026, exceeding the $12.9 million from digital asset mining and marking the second consecutive quarter where HPC hosting was the majority revenue source.
Total decreased 6% to $44.8 million, as the $31.9 million in new HPC lease revenue largely offset a $34.8 million decline in bitcoin mining revenue caused by curtailment and the repurposing of infrastructure for HPC.
fell 26.3 points to 19.9%, driven by a shift in mix toward lower-margin HPC leasing and the inclusion of $4.5 million in HPC power costs and $2.4 million in fit-out service costs.
Section summaries
Management's Discussion and Analysis
TeraWulf pivots to HPC leasing as primary driver, with $31.9M in Q2 HPC revenue offsetting a bitcoin mining decline amid strategic campus expansion.
⌄
Total decreased 6% to $44.8M as a $34.8M drop in bitcoin mining revenue (due to curtailment and repurposing for HPC) was largely offset by $31.9M in new HPC lease revenue.
Net loss widened to $939.9 million, almost entirely due to a $755.7 million non-cash loss from the change in issued to Google, plus $56.4 million in on the company's convertible notes.
SG&A expenses rose to $126.9 million from $14.3 million a year earlier, primarily from an $82.6 million increase in and higher headcount costs following the Beowulf E&D acquisition.
Cash and equivalents stood at $2.62 billion at quarter-end, down only 0.4% sequentially, despite $1.6 billion in investing outflows for HPC infrastructure and site acquisitions during the quarter.
What changed
The Q1 2026 watch item on HPC lease scaling was answered: HPC revenue rose to $31.9 million from $21.0 million in Q1 2026, driven by the Akela Fluidstack leases at the Abernathy campus coming online.
SG&A remained elevated at $126.9 million, essentially flat with the $127.8 million in Q1 2026, confirming the higher run-rate driven by and Beowulf integration costs is persisting.
The $14.1 million in that drove a net negative mining power cost in Q1 2026 did not repeat at the same level; fell to 19.9% from 60.1% in the prior quarter.
remained deeply negative at a $992.3 million outflow, accelerating from the $540.5 million outflow in Q1 2026 as the HPC datacenter buildout continued.
The company disclosed a new risk: a New York executive order temporarily pausing data center permits could delay or raise costs for the Cayuga Site development, though management does not currently expect a material impact on the timeline.
What to watch
Q3 2026 HPC lease as the new 401 MW lease with Anthropic at the Justified Data Campus begins to contribute, and whether total HPC revenue scales beyond the $31.9 million Q2 level.
Movement in the fair value of the Google Warrants, which drove a $755.7 million non-cash charge this quarter and can swing materially in either direction.
SG&A and in Q3 2026 to see if the $126.9 million quarterly run-rate persists or begins to moderate as Beowulf integration costs roll off.
in Q3 2026 as the $992.3 million quarterly outflow for datacenter buildout continues against the $2.62 billion cash balance, and whether the $530 million Abernathy Joint Venture sale proceeds provide a meaningful offset.
Cost of fell 44% to $12.4M, driven by lower mining power consumption, partially offset by $4.5M in new HPC power costs and $2.4M in fit-out service costs.
Operating expenses surged to $23.4M from $3.5M, and SG&A ballooned to $126.9M from $14.3M, primarily due to an $82.6M increase in and costs from the Beowulf E&D acquisition.
The company reported a massive net loss of $940.8M, heavily impacted by a $755.7M non-cash loss from the change in fair value of Google Warrants and $56.4M in on new notes.
Liquidity remains strong with $3.0B in cash and equivalents, but cash used in operations was $154.3M and investing activities consumed $1.6B, largely for HPC infrastructure and site acquisitions.
Strategic execution is focused on converting infrastructure into long-term HPC contracts, highlighted by a new 401 MW lease with Anthropic at the Justified Data Campus and the $530M sale of the Abernathy Joint Venture stake.
Quantitative and Qualitative Disclosures About Market Risk
The following discussion about our market risk exposures involves forward-looking statements. Actual results could differ materially from those projected in our forward-looking statements. For more information regarding the forward-looking statements used in this section and els…
⌄
The following discussion about our market risk exposures involves forward-looking statements. Actual results could differ materially from those projected in our forward-looking statements. For more information regarding the forward-looking statements used in this section and elsewhere in this Quarterly Report, see the “Cautionary Note Regarding Forward-Looking Statements” at the forepart of this Quarterly Report.
Risk Regarding the Price of Bitcoin and Energy
Our business and development strategy is focused on maximizing revenue and profitability of our bitcoin mining fleet. As of June 30, 2026, our digital asset balance was comprised of 2 bitcoin recorded at its fair value of $133,000, all of which were produced from our bitcoin mining operations.
We cannot predict the future market price of bitcoin, the future value of which will affect revenue from our operations, and any future declines in the fair value of the bitcoin we mine and hold for our account would be reported in our financial statements and results of operations as a charge against net income, which could have a material adverse effect on the market price for our securities.
A 10% increase or decrease in both the price of bitcoin produced during the six months ended June 30, 2026 and the fair value of bitcoin as of June 30, 2026 would have increased or decreased net loss by approximately $2.6 million.
A 10% increase or decrease in power prices during the six months ended June 30, 2026 would have increased or decreased net loss by approximately $1.5 million.
From time to time, TeraWulf may be involved in various legal and administrative proceedings, lawsuits and claims incidental to the conduct of its business. Some of these proceedings, lawsuits or claims may be material and involve highly complex issues that are subject to substan…
⌄
From time to time, TeraWulf may be involved in various legal and administrative proceedings, lawsuits and claims incidental to the conduct of its business. Some of these proceedings, lawsuits or claims may be material and involve highly complex issues that are subject to substantial uncertainties and could result in damages, fines, penalties, non-monetary sanctions or relief. TeraWulf recognizes provisions for claims or pending litigation when it determines that an unfavorable outcome is probable, and the amount of loss can be reasonably estimated. Due to the inherent uncertain nature of litigation, the ultimate outcome or actual cost of settlement may materially vary from estimates. TeraWulf is not subject to any material pending legal and administrative proceedings, lawsuits or claims as of the date of this Quarterly Report. TeraWulf’s business and operations are also subject to extensive regulation, which may result in regulatory proceedings against TeraWulf.
A New York executive order temporarily pausing data center permits could delay or raise costs for the Cayuga Site development.
⌄
New York’s Executive Order No. 62 temporarily pauses certain discretionary permits for covered data center projects while the state develops a broader regulatory framework.
The company does not currently expect the moratorium to materially affect the Cayuga Site timeline, but the final framework could still delay permitting or increase costs.
Future requirements may force additional investments in generation, transmission, storage, environmental mitigation, or community benefits.
Such outcomes could impair the company’s ability to meet customer schedules, compete with projects in more favorable jurisdictions, or achieve anticipated returns.