Mining company TeraWulf reported a significant net loss of approximately $61.4 million in the first quarter of 2025, a sharp decline from the same period last year. The revenue also fell to $34.4 million from $42.4 million in 2024. The company’s earnings report, published on May 9, highlighted a steep rise in the cost of revenue to $24.5 million, up from $14.4 million the previous year. This increase meant that TeraWulf’s cost of revenue represented 71.4% of total income from operations in Q1 2025, more than double the percentage recorded in the prior-year quarter. The company attributed the decline in revenue to various factors, including Bitcoin’s post-halving economics that reduced the block subsidy, increased network difficulty, and severe weather conditions in New York where one of its mining facilities is located. The challenging financial landscape in the mining industry is further impacted by geopolitical trade tensions, leading to uncertainty and losses for companies like TeraWulf. The introduction of trade tariffs by US President Donald Trump has raised concerns among mining companies about rising costs of hardware and infrastructure. Imposing tariffs on mining hardware could potentially give miners outside the US a price advantage over American competitors. As a result, miners have been selling off a significant portion of their mined BTC, with 40% being liquidated in March 2025. This trend reversed the post-halving accumulation pattern seen earlier. The high level of uncertainty in the market, exacerbated by geopolitical events, has led to increased selling pressure from miners. The financial challenges faced by TeraWulf and other mining companies underscore the volatile and competitive nature of the industry, necessitating strategic adaptation to navigate the evolving landscape.