TeraWulf Misses Q4 Estimates as Bitcoin Mining Revenue Drops

What to Know

$1.66 per share -- TeraWulf's Q4 2025 loss dwarfed the $0.16 analysts had expected, missing estimates by a wide margin
$35.8 million in quarterly revenue fell short of the $44.1 million consensus and declined sharply from $50.6 million in Q3
$12.8 billion in signed AI and high-performance computing contracts position TeraWulf for potential growth in 2026
Bitcoin mining profitability is under severe pressure with BTC trading at $67,982, well below the $87,310 estimated average cost to mine one coin

TeraWulf, the publicly traded Bitcoin mining and digital infrastructure company, reported a steep fourth-quarter earnings miss on Thursday, posting a $1.66 per-share loss that badly undershot Wall Street expectations. Declining mining revenue driven by falling Bitcoin prices weighed on results, though $12.8 billion in AI contracts may fuel a 2026 turnaround.

TeraWulf Q4 Revenue Plunges Below Expectations

TeraWulf (WULF) delivered Q4 revenue of $35.8 million for the period ending December 31, well below the $44.1 million consensus estimate from Yahoo Finance. That total included $26.1 million from digital asset operations and $9.7 million from high-performance computing hosting, representing a steep decline from $50.6 million in Q3.

The per-share loss of $1.66 was roughly ten times the $0.16 analysts had projected, and far worse than the $0.21 loss posted a year earlier. Full-year 2025 revenue still climbed to $168.5 million from $140.1 million in 2024, according to the earnings release.

Why Did TeraWulf's Bitcoin Mining Revenue Decline?

Falling Bitcoin prices were the primary driver. The cryptocurrency dropped from approximately $125,000 in early October to near $60,000 by February 2026, according to TradingView. At $67,982 at the time of publication, BTC sat well below the estimated $87,310 average cost to mine one coin, according to MacroMicro. The profitability squeeze has pressured miners industry-wide, accelerating a broader pivot toward AI and data center operations.

AI and HPC Contracts Fuel 2026 Growth Outlook

TeraWulf has locked in $12.8 billion in signed AI and high-performance computing contracts to offset weakening mining economics. The company plans to acquire sites in Kentucky (MISO) and Maryland (PJM), adding 1.5 gigawatts of capacity that would more than double its current footprint to roughly 2.8 GW across five locations. These sites form a multi-year pipeline capable of supporting 250 to 500 megawatts of critical IT capacity annually, according to the company.

Chief Technology Officer Nazar Khan said the firm is advancing build schedules and optimizing design to support next-generation AI workloads at scale. CEO Paul Prager said TeraWulf enters 2026 with 522 critical IT megawatts of contracted HPC capacity and a gross 2.9-gigawatt multi-regional platform built for long-term expansion.

We enter 2026 with 522 critical IT MW of contracted HPC capacity and a gross 2.9-GW multi-regional platform designed for long-term expansion.
— Paul Prager, CEO of TeraWulf

What This Means Going Forward

TeraWulf's Q4 results highlight the mounting pressure on Bitcoin miners during a prolonged price downturn. With BTC below breakeven mining costs, the company's $12.8 billion AI and HPC backlog offers a crucial hedge. Planned expansions in Kentucky and Maryland signal management's bet that data center demand can sustain the business even if mining economics stay unfavorable through 2026.