TeraWulf Q1 loss widens amid rising costs, falling revenue

TeraWulf, a mining firm, reported a net loss of $61.4 million in the first quarter of 2025, a significant deterioration from the same period last year. The company's revenue fell to $34.4 million, down from $42.4 million in the same period of 2024. The cost of revenue rose sharply to $24.5 million, up from $14.4 million a year earlier. As a result, the cost of revenue accounted for 71.4% of total income from operations in Q1 2025, more than double the 34% recorded in the prior-year quarter. TeraWulf attributed the decreased revenue to Bitcoin's post-halving economics, rising network difficulty, and severe weather in the upstate New York area. The company is not alone in posting losses for the quarter, as the mining industry faces reduced block rewards and macroeconomic uncertainty. The trade tariffs introduced by US President Donald Trump have raised concern among mining companies and analysts that the import duties will drive up the costs of hardware and other physical infrastructure. As a result of the ongoing tariff negotiations, miners sold 40% of their mined BTC in March 2025, reversing the post-halving trend of miners accumulating BTC for corporate treasuries or reserves. The March sell-off was the highest month for miner BTC liquidations since October 2024.