TeraWulf's bitcoin mining revenue falls 69% to $13.2 million as AI hosting becomes 83% of sales and a $728 million paper gain lifts net income

TeraWulf is now mostly a landlord for AI computing. The company reported third-quarter digital asset revenue of $13.2 million on Friday, down from $43.4 million a year earlier, a fall of about 69%, while high-performance computing lease revenue rose to about $63.0 million from $7.2 million. HPC made up about 83% of total revenue of $76.2 million, which was up 51% year over year, The Block reported.

The headline profit is an accounting effect. Net income attributable to shareholders was $709.9 million, against a loss of $455.1 million a year earlier, but the swing comes from a $728.4 million non-cash gain on the change in fair value of warrant and derivative liabilities, plus a $95.0 million gain on the sale of a 50.1% interest in its Abernathy joint venture. The operating loss widened to $88.2 million from $24.7 million, and adjusted EBITDA was negative $12.8 million. Diluted earnings per share were a loss of $0.03.

The build-out is what investors are watching. At Lake Mariner in New York, 102 MW of critical IT capacity was earning revenue at September 30, with 336 MW more under construction and the next building due to start generating rent in the fourth quarter. At the Justified campus in Kentucky, a 20-year lease with Anthropic covers about 401 MW, roughly $19 billion of contracted revenue over the initial term, backed by a Google credit backstop announced on November 4 and an engineering and construction agreement with Fluor; the first phases are due in late 2027. Contracted power at the Muskie campus rose from 500 MW to 1,000 MW, pending Kentucky regulators' approval. Cash, cash equivalents and restricted cash were about $2.4 billion at quarter end. The Block reported that the shares were up 8.1% at $10.90 in pre-market trading after the release.