U.S. Bitcoin miner TeraWulf’s third-quarter earnings report, released Friday, showed mining revenue down about 69% from a year earlier, while revenue from AI and high-performance computing leases surged 774%. HPC accounted for 83% of quarterly revenue, flipping the company’s revenue mix. (Previously: TeraWulf lands a “$19 billion” 20-year compute lease with Anthropic; shares surge 17%) (Background: Listed Bitcoin miners’ hashrate fell 13.4% in six months, while AI revenue has overtaken mining) U.S. Bitcoin miner TeraWulf (Nasdaq: WULF) released its third-quarter 2026 results on Friday, laying bare for the first time the shift between its former core mining business and its new AI leasing business. Digital asset (mining) revenue fell about 69% year over year, from $43.4 million to $13.2 million. High-performance computing (HPC) leasing revenue, meanwhile, soared 774%, from $7.2 million to $63 million. TeraWulf’s two main business segments and revenue mix in the third quarter of 2026. (Illustration by BlockTempo) According to TeraWulf’s quarterly report released Friday, total quarterly revenue was $76.2 million, up 51% year over year, with HPC leasing contributing 83%—compared with just 14% a year earlier. In other words, a company that only a few years ago focused on nuclear-powered Bitcoin mining now earns more than 80% of its revenue by leasing data-center racks and computing power to AI customers. Mining has become a sideshow. Profit figures were heavily distorted by a non-cash item. TeraWulf reported net income attributable to shareholders of $709.9 million this quarter, including a $728.4 million non-cash gain from changes in the fair value of warrants and derivative liabilities. Excluding this item, operating losses widened from $24.7 million in the same period last year to $88.2 million, while adjusted EBITDA turned negative at $12.8 million. The market, however, was not discouraged: after the results were released, TeraWulf shares rose 8.1% in premarket trading to $10.90. Data centers and the Anthropic contract: a blueprint for turning computing power into cash The results are underpinned by the company’s data-center footprint. As of September 30, 102 megawatts of capacity at TeraWulf’s Lake Mariner site in New York had entered revenue-generating operations, with another 336 MW under construction. The company expects its newest data-center building to begin generating lease revenue in the fourth quarter, followed by another in early 2027. The bigger growth driver is in Kentucky. TeraWulf previously signed a 20-year lease with Anthropic covering about 401 MW of critical IT capacity at its Justified site, with approximately $19 billion in revenue over the initial contract term. Earlier this week, the company announced that Google had provided credit support for financing the project, and that it had signed an engineering, procurement, and construction (EPC) contract with Fluor Enterprises covering three data-center buildings. The first facilities are expected to be delivered by the end of 2027. At another Kentucky site, Muskie, contracted power capacity is set to increase from 500 MW to 1 gigawatt (GW), subject to regulatory approval. Chairman and CEO Paul Prager said in the earnings report that Lake Mariner is delivering contracted capacity and generating revenue; Justified has customers, credit support, and the construction framework needed to scale; and Muskie offers a contracted path to 1 GW of power. The company’s overall goal is to sign an additional 250 MW to 500 MW of critical IT capacity each year. At quarter-end, it held approximately $2.4 billion in cash, cash equivalents, and restricted cash. Miners’ transition enters the “compute leasing” proving ground Putting these results in the context of this year’s mining-industry transition, declining mining revenue is not necessarily a bad sign. TeraWulf’s mining revenue is nearly 70% lower than a year ago, but that reflects capacity shifting from self-operated mining to long-term leasing contracts. Compare this with Riot Platforms, which also signed a 15-year, $28 billion contract with Anthropic. Its contract includes a rent clawback clause bearing 12% annual interest, which could leave the miner paying interest to its tenant instead. This shows how quickly these “compute landlords” deals are growing more complex. Who actually benefits from the transition depends on tenant creditworthiness and financing terms, not just the headline contract value. Another point to watch is how risk is being redistributed. In TeraWulf’s deal, Google’s credit support partly shifts the consequences of a tenant default onto Google. In effect, the company is trading an “equity option exercisable only upon default” for confidence from banks and institutional investors in the project financing. But following the U.S. midterm elections, political risks are rising: Democrats control Congress, and data-center approvals in Texas and elsewhere could slow. What is being repriced is not just one miner, but the pace of supply across the entire AI infrastructure sector. Related articles Bitcoin miner Riot Platforms lands a $28 billion Anthropic contract—but may have to “pay interest” Texas politics shift! Data-center approvals could stall as Wall Street slashes price targets for seven miners Mining Bitcoin no more—now it’s AI money! Miner HIVE announces $2.5 billion investment in an AI supercomputing center; shares rocket more than 35% “TeraWulf mining revenue plunges 69%, but AI leasing surges 774%” This article was first published on BlockTempo, the most influential blockchain news media in the Chinese-speaking world.