TeraWulf Bitcoin production falls 21% in Q2, looks to AI expansion

Bitcoin miner TeraWulf mined 699 Bitcoin in Q2 — a 21% year-over-year decline — but still beat analyst expectations with $35.6 million in quarterly revenue.

Bitcoin miner TeraWulf beat revenue and missed earnings expectations as it posted a 21% decline in the amount of Bitcoin it mined in the second quarter of 2024. 

In an Aug. 2 second-quarter earnings report, the firm said it mined 699 Bitcoin (BTC) in the second quarter, a 21% decline year over year.

The firm reported second-quarter revenue of $35.6 million, slightly beating the consensus estimate of $35.4 million. However, it posted a quarterly loss of $0.03 per share, falling short of an estimated $0.02 loss per share.

The firm also noted a 243% increase in the cost to mine Bitcoin year over year, which saw mining expenditures rise from $6,688 per Bitcoin in Q2 2023 to $22,954 per Bitcoin in Q2 2024.

The firm explained that this was due to an “approximate doubling” in network difficulty in the same timeframe and April’s Bitcoin Halving, a scheduled event that halved the Bitcoin-denominated reward paid to miners for their efforts.

Meanwhile, TeraWulf said it remained committed to expanding into high-performance computing (HPC) and artificial intelligence in the year’s second half.

The firm noted that it had begun construction on a new building at its Lake Mariner facility. The building is expected to contribute an additional 50 MW of infrastructure capacity when it comes online in the first quarter of 2025.

Related: Bitcoin miner Riot Platforms miss estimates with wider Q2 loss

On July 9, TeraWulf said it would expand into HPC and AI at its Lake Mariner location, committing an initial 2 MW block to the facility and purchasing a 128-GPU cluster from NVIDIA.

On July 8, Terwulf’s chief strategy officer, Kerri Langlais, told Cointelegraph that the firm would consider a merger if it could widen its profit margins.

Discussions around Bitcoin miner merger and acquisition activity came after Riot Platforms attempted a “hostile” takeover of rival firm Bitfarms with a $950 million buyout offer in June, which ultimately failed.