Mining firm TeraWulf reported a net loss of approximately $61.4 million in its earnings for the first quarter of 2025, a significant deterioration from the same period last year. Revenue fell to $34.4 million from $42.4 million in the same quarter of 2024, according to the company’s earnings report published on May 9. The cost of revenue rose sharply to $24.5 million, up from $14.4 million a year earlier.
As a result, TeraWulf’s cost of revenue accounted for 71.4% of total income from operations in Q1 2025, more than double the 34% recorded in the prior-year quarter. In Q1 2024, the company posted a net loss of $9.6 million.
TeraWulf attributed the decreased revenue to Bitcoin’s post-halving economics, which reduced the block subsidy from 6.25 BTC per block mined to 3.125 BTC per block mined. Additionally, rising network difficulty and severe weather conditions in the upstate New York area, where TeraWulf has a mining facility, have negatively impacted operations.
The company is not alone in reporting losses for the quarter. The mining industry as a whole is grappling with reduced block rewards and the macroeconomic uncertainty stemming from geopolitical trade tensions that have created turmoil for financial markets and businesses alike.
Miners Affected by Trade Tariffs and High Uncertainty
Trade tariffs introduced by US President Donald Trump have raised concerns among mining companies and analysts about increased costs for hardware and other critical infrastructure necessary to maintain crypto nodes. Imposing tariffs on mining hardware, such as application-specific integrated circuits (ASICs), creates a competitive disadvantage for US-based miners, who may find themselves unable to effectively compete against their counterparts located outside the U.S. that do not face such additional costs.
As a byproduct of ongoing tariff negotiations and the challenging market environment, miners liquidated 40% of their mined BTC in March 2025. This represents a significant shift from the trend of accumulating BTC for corporate treasuries or reserves following the halving event. March’s sell-off was the highest for miner BTC liquidations since October 2024, a period marked by similar uncertainty surrounding the upcoming US presidential election.
In summary, TeraWulf’s increasing losses reflect a broader struggle within the cryptocurrency mining industry, characterized by economic challenges, regulatory pressures, and heightened competition. The combined impact of tariffs, lowered block rewards, and increased operational costs continues to reshape the financial landscape for miners.
