TeraWulf (NASDAQ: $WULF ) has reported a steep first-quarter loss as it pivots from a Bitcoin (CRYPTO: $BTC ) miner to an artificial intelligence (A.I.) data centre operator.
The company announced a Q1 loss of -$1.01 U.S. a share, much worse than the loss of -$0.16 U.S. reported a year ago.
Wall Street expected TeraWulf to post a loss of -$0.20 U.S. a share for Q1 this year. Revenue in the latest quarter came in at $34 million U.S., down from $34.4 million U.S. a year ago.
The financial struggles come as TeraWulf transitions to become an A.I. data centre operator.
The company is working with Alphabet (NASDAQ: $GOOGL ) to build a massive data-centre campus in upstate New York.
While not easy, the data centre transition is starting to succeed, say analysts.
High-performance compute leases contributed $21 million U.S. in revenue to TeraWulf’s first quarter, surpassing Wall Street’s forecast of $18.6 million U.S.
TeraWulf had no A.I. lease revenue a year ago.
The company is one of several crypto miners that is repurposing its power capacity for A.I. as Bitcoin mining profitability is negatively impacted by declining prices.
WULF stock has gained 620% over the past year to trade at $23.79 U.S. per share.
