TeraWulf Bitcoin (BTC) Mining Revenue Falls 69% in Q3 2026 Filing

HPC Leasing Now 83% of Revenue

Bitcoin (BTC) miner TeraWulf (NASDAQ: WULF) reported third quarter 2026 results on Wednesday, and for the first time the filing set the two halves of the business side by side in full: how far its legacy mining revenue has fallen and how quickly AI leasing has replaced it. Digital asset revenue, earned from Proof of Work block rewards and valued at the prevailing Bitcoin price, came in at $13.2 million, down roughly 69% from $43.4 million a year earlier. High performance computing (HPC) leasing, the rental of powered, rack-ready data center capacity to AI tenants, moved the other way, climbing from $7.2 million to $63 million, an increase of 774%. Total quarterly revenue reached $76.2 million, up 51% year over year, and HPC leases contributed 83% of it against 14% in the year-ago quarter, according to the company's filing with the SEC. Last year the mix was nearly inverted, with mining carrying the rest, a reversal for a company whose core a few years ago was nuclear-powered hashing. The structure now reads as an AI infrastructure company with a mining sideline: more than eight of every ten dollars of quarterly income comes from renting racks and compute capacity to AI clients. Profitability was heavily distorted by a single non-cash line. Net income attributable to shareholders reached $709.9 million, but that figure includes a $728.4 million non-cash benefit from changes in the fair value of warrants and derivative liabilities. Excluding it, the operating loss widened from $24.7 million a year earlier to $88.2 million, and adjusted EBITDA turned negative at $12.8 million. The market's response was recorded separately: TeraWulf shares rose 8.1% in pre-market trading to $10.90 after the release. The quarter covered in the report ended September 30.

The $19 Billion Anthropic Lease

The build-out behind those figures spans two states and a queue of contracts. At the Lake Mariner site in New York, 102 megawatts of capacity had entered the revenue-generating stage as of September 30, with another 336 megawatts under construction. The company expects its newest building there to start collecting rent in the fourth quarter and a second to follow in early 2027. The larger growth engine sits in Kentucky. TeraWulf has signed a 20-year lease with Anthropic covering roughly 401 megawatts of critical IT capacity, the rack-ready power a data center can actually sell to tenants, at the Justified site, with initial contracted revenue of about $19 billion. Earlier this week the company announced it had secured credit support from Google for the project financing behind that lease, a backstop that activates if the tenant defaults. Google's involvement gives lenders a named counterparty behind the lease, which the company presented as the condition for bank and institutional project financing. It also executed an engineering, procurement and construction (EPC) agreement with Fluor Enterprises covering three buildings, the single contract that locks design, equipment and delivery together, with first completions expected at the end of 2027. The Kentucky complex is designed so that each delivered building converts contracted megawatts into recurring lease payments across the 20-year term. A second Kentucky site, Muskie, carries signed power capacity of 500 megawatts, a figure that can rise to 1 gigawatt once regulators approve the expansion. Chairman and chief executive Paul Prager said in the report that Lake Mariner is already delivering contracted capacity and producing revenue, that Justified now holds a customer, credit support and a construction framework to scale, and that Muskie offers a contracted path to 1 gigawatt of power. The company's stated target is to sign another 250 to 500 megawatts of critical IT capacity each year, and it ended the quarter with about $2.4 billion in cash, cash equivalents and restricted cash.

Reading the Miner Pivot

The quarter sets a benchmark for how far Bitcoin miners can take the leasing playbook. The filing shows the swap from hash rate to rent is revenue-positive but operationally loss-making. It also separates capacity lessors from treasury buyers such as Strategy's 845,000 BTC stack, which keeps full exposure to Bitcoin (BTC) and its halving cycle. Peers show how fast these structures complicate: Riot's comparable Anthropic lease, $28 billion over 15 years, embeds a rent clawback with a 12% annual interest charge that can leave the miner paying its tenant. Who captures the pivot's gains, in other words, depends on tenant credit and financing terms, not headline contract totals. For readers tracking the trading side, our Bitcoin technical analysis follows the market separately from these corporate results.