TeraWulf's first-quarter loss widened, weighed down by rising costs and falling revenue

TeraWulf reported a net loss of about $61.40 million in Quarter 1 2025, a sharp deterioration from $9.60 million in the same quarter last year. Revenue fell to $34.40 million from $42.40 million in the same period in 2024, while cost of revenue jumped from $14.40 million to $24.50 million, representing 71.4% of total operating income, up from 34% in the same period last year.
The company attributed the decline in revenue to "block subsidies falling from 6.25 BTC to 3.125 BTC per block after the bitcoin halving, increased network difficulty, and extreme weather at mines in upstate New York". In addition, "President Trump's trade tariffs" have raised industry concerns that "import taxes will drive up the cost of hardware and other infrastructure needed to run crypto nodes".
In March, miners sold 40% of their mined BTC, the "highest monthly sell-off since October 2024," indicating a "reversal in the trend of miners accumulating BTC after the halving."