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The Coin Rise 2025-05-10 08:32:16

TeraWulf Posts $61M Q1 Loss as Bitcoin Halving, Tariffs Bite into Miner Margins

Bitcoin miner TeraWulf has posted a net loss of $61.4 million in the first quarter of 2025, more than six times its Q1 2024 losses, underscoring the post-halving pressure bearing down on the crypto mining sector. According to the company’s May 9 earnings report, revenue for the quarter dropped 19% year-over-year to $34.4 million, while operational costs surged — with cost of revenue more than doubling to $24.5 million from $14.4 million last year. The company pointed to multiple factors for its dismal quarter: Bitcoin’s April halving, which cut miner rewards from 6.25 to 3.125 BTC per block; rising network difficulty; and unexpected weather disruptions at its New York facility. With cost of revenue now consuming over 71% of its total income — compared to 34% a year ago — TeraWulf is clearly grappling with squeezed margins and structural challenges. Tariffs Fuel TeraWulf Sell-Offs Beyond the halving, macroeconomic pressure from President Donald Trump’s revived trade tariffs is compounding the miner’s woes . The new duties are making imported mining hardware, especially ASIC machines, more expensive — and are expected to widen the gap between U.S. miners and their overseas competitors. Industry insiders warn that the extra costs could cripple domestic mining expansion unless exemptions or workarounds are introduced. The financial strain appears to be pushing miners toward liquidity. Data from March shows that mining firms sold off 40% of their mined Bitcoin — the most significant liquidation since October 2024. The trend marked a sharp reversal from the post-halving accumulation strategies many miners had adopted in hopes of long-term profitability. Outlook Murky for U.S. Miners TeraWulf’s earnings mirror a broader reality within the crypto mining space: shrinking returns and heightened uncertainty. The combination of reduced block rewards, inflationary pressures, and trade tensions has eroded what were once reliable business models. While some miners are diversifying into AI or high-performance computing, companies like TeraWulf remain heavily tied to Bitcoin’s economics. Unless the policy climate becomes more favorable or Bitcoin’s price sees a significant lift, miners may continue facing tough quarters ahead — with the halving cycle now ushering in a far more competitive and uncertain era. The post TeraWulf Posts $61M Q1 Loss as Bitcoin Halving, Tariffs Bite into Miner Margins appeared first on TheCoinrise.com .

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