Shares of TeraWulf Inc. (NASDAQ: WULF) tumbled 5.45% in pre-market trading on Friday following the release of its disappointing first-quarter 2025 financial results. The bitcoin mining and high-performance computing company reported earnings that fell short of analysts' expectations, triggering a sell-off among investors.

TeraWulf announced a quarterly loss of $0.16 per share, significantly wider than the $0.07 loss per share anticipated by analysts. This represents a substantial decline from the $0.03 loss per share reported in the same quarter last year. Revenue for the quarter also missed the mark, coming in at $34.4 million, well below the consensus estimate of $43.1 million and down 19% from $42.4 million in Q1 2024.

The company's financial performance was further marred by a negative adjusted EBITDA of $4.7 million, considerably worse than the expected negative $606,100. TeraWulf attributed the underwhelming results to several factors, including the impact of the April 2024 bitcoin halving, increased network difficulty, and elevated power prices due to extreme winter weather in Upstate New York. Despite these challenges, the company reported progress on its strategic initiatives, including the energization of Miner Building 5 and advancements in its high-performance computing (HPC) infrastructure development.