TeraWulf's high-performance computing business overtook its bitcoin mining segment for the first time last quarter, following a trend of former pure-play bitcoin miners shifting focus to AI and hyperscaler infrastructure.
The company reported $34 million in total revenue for Q1, roughly flat from $34.4 million from a year earlier.
HPC lease revenue reached $21 million, surpassing digital asset revenue of just under $13 million as it ramps up long-term compute contracts.
"This is the first period where HPC leasing is meaningfully reflected in our financials," CEO Paul Prager said on the earnings call.
It is a milestone that is becoming more common across the sector. Riot Platforms recently reported $33.2 million in first-time data center revenue in Q1, with its AMD deal driving the bulk of that segment as it expands beyond bitcoin mining.
Despite this, TeraWulf saw a $427.6 million net loss, widening from $61.4 million a year earlier, though nearly half was attributed to non-cash warrant revaluations.
CFO Patrick Fleury described the quarter as "a business in transition," with revenue increasingly tied to "stable, contracted" compute contracts.
At its Lake Mariner facility in New York, TeraWulf reported that 60 MW of HPC capacity is now generating revenue, with additional buildings slated to come online later this year.
The company is also repurposing part of its bitcoin mining infrastructure to support HPC workloads, causing costs to rise to nearly $200 million. That includes $25.7 million in impairments tied partly to shutting down mining operations.
TeraWulf ended the quarter with about $3.1 billion in cash and restricted cash and reiterated plans to add between 250 and 500 megawatts of new contracted capacity annually.
Shares of TeraWulf (NASDAQ: WULF) were down 1% on the day to $23, according to The Block's crypto equities price page.