Mining revenue plummeted 73%, TeraWulf (WULF.US) bets on AI computing power

According to WooFunai, TeraWulf (WULF.US)'s business focus is undergoing a structural shift from Bitcoin mining to high-performance computing (HPC). Although its New York Lake Mariner Park still retains some mining facilities, long-term data center leases have replaced mining as a core revenue source.

Drastic fluctuations in financial data reflect the pain of this transformation. Chief Financial Officer Patrick Fleury pointed out that the high-performance computing business contributed 71% of revenue, but the net loss in the second quarter was as high as US$9408 million, of which US$755.7 million stemmed from non-cash expenses measured by warrant liabilities.

According to data compiled by WooFunai, the company's total net loss so far this year is close to 1.4 billion US dollars, although management emphasizes that stronger credit support guarantees the leasing business.

The pace of infrastructure capacity expansion did not slow down due to losses. At the end of June, the Lakemariner Park's critical IT processing capacity reached 81 megawatts; by the beginning of July, with the commissioning of the new facility, the total processing capacity increased to 102 megawatts. Chairman and CEO Paul Prager said that this marks the company's move from platform construction to large-scale commercial operation, and power control is becoming more and more critical in the development of artificial intelligence.

Faced with cost pressure, TeraWulf is sticking to the goal of adding 250 MW to 500 MW of critical IT processing capacity each year. The company plans to realise value at the right time and re-invest capital in infrastructure projects with stable power supply, clear customer needs and a good risk-return ratio to strengthen customer relationships and lock in long-term economic benefits.