TeraWulf sees 130% revenue growth despite over 20% drop in Bitcoin production

Bitcoin miner TeraWulf reported a 130% revenue increase in Q2 despite a more than 20% drop in crypto production.

US-based Bitcoin mining company TeraWulf Inc. has announced its Q2 financial results, showing that its revenue increased by 130% compared to the previous year, despite a decline in Bitcoin production.

According to the company’s press release dated August 12, revenue rose to $35.6 million from $15.5 million in the same quarter last year, while gross profit rose to $21.7 million from $10.3 million. However, the gross margin fell to 60.9% from 66.9% due to “an approximate doubling of network difficulty and a halving of the bitcoin reward for April,” the release said.

TeraWulf’s own mining of Bitcoin decreased by 21.4% in Q2, falling to a total of 699 BTC across its Lake Mariner and Nautilus Cryptomine facilities. The company attributed this to increased mining difficulty and rising energy costs.

Operationally, TeraWulf has expanded its infrastructure with the completion of the site at the Lake Mariner Facility, increasing mining capacity to 245 MW and 10 EH/s. Another construction is underway that is expected to add another 50 MW by Q1 2025. The company is also moving into high-performance computing and AI projects, including the recent purchase of a 128 GPU cluster.

Bitcoin miners target AI sector

The Bitcoin mining company announced its intention to enter the AI ​​sector by paying off its remaining $77.5 million term loan ahead of schedule in early July, thus closing all of its debt. At the time, the Maryland-based firm announced plans to leverage generative AI to optimize costs and financial outputs.

TeraWulf isn’t the only crypto mining company looking to diversify its business by focusing on new areas, but the profitability of doubling down on AI has yet to be seen. In July, shares of Australian Bitcoin miner Iris Energy fell 14% after Culper Research questioned its ability to service high-performance computers for AI.

Iris’ flagship Childress build “lacks numerous features critical for HPC applications,” Culper said in a report, adding that the firm’s management (Iris Co-CEO Daniel Roberts and his brother Will) have been selling their own stock since February, the first time this has happened since Iris went public.