TeraWulf Inc.

What they do

TeraWulf controls power-advantaged data center campuses through land ownership or long-term ground leases, interconnection rights, and electrical and cooling infrastructure, then leases critical IT capacity to hyperscale and enterprise customers under long-term data center leases. Its contracted HPC platform consists of the Lake Mariner Data Campus in Barker, New York (NYISO) and the Abernathy HPC Campus in Abernathy, Texas (SPP), with a third site, the Cayuga Site in Lansing, New York, in the development pipeline. The company also continues to operate legacy bitcoin mining facilities where economically attractive and not in conflict with HPC development.

Revenue drivers

• HPC leasing (Lake Mariner) — Long-term data center leases, typically 10 to 25 years with escalators and renewal and contraction options, ramping at the Lake Mariner Data Campus; generated $31.9 million, or approximately 71% of second-quarter 2026 revenue.
• Bitcoin mining — Legacy self-mining operations that historically produced the majority of revenue; the company is curtailing and repurposing portions of this infrastructure for HPC and now derives a significant but declining portion of revenue from it.
• Contracted HPC capacity pipeline — 522 MW of contracted critical IT load across Lake Mariner and Abernathy, plus approximately 320 MW of potential contractual critical IT load at the Cayuga Site, and new arrangements including an approximate 401 MW Anthropic lease at the Justified Data Campus.

Recent performance

Second-quarter 2026 revenue was $44.8 million, including $31.9 million of HPC lease revenue, about 71% of the total. The company ended the quarter with approximately $3.0 billion of cash and restricted cash and had 81 MW of revenue-generating critical IT capacity at Lake Mariner as of June 30, 2026, rising to 102 MW after CB-3 delivery in early July. Full-year 2025 revenue was $168.5 million, up from $140.1 million in 2024, but 2025 net loss was $661.4 million versus a $72.4 million loss in 2024, and operating cash flow was negative $123.2 million. Diluted EPS was negative $1.66 for 2025. Latest reported total assets were $8.05 billion and total liabilities $7.90 billion at June 30, 2026, with shareholder equity of $147.3 million.

Strategy

Management is shifting capital allocation to HPC data center development, long-term hosting arrangements and AI compute infrastructure, while continuing bitcoin mining only where it remains economic and does not conflict with HPC. The model emphasizes retaining control of land, interconnection rights, electrical and cooling systems, and on-site generation, and pairing campuses with credit-enhanced, long-duration customer leases. The company targets contracting approximately 250 MW to 500 MW of new critical IT HPC capacity annually. Recent actions include the Muskie Data Campus acquisition in Eastern Kentucky with up to 1 GW of contracted electric service, the Anthropic lease at Justified, FERC authorization for the Morgantown generating station acquisition tied to the Chesapeake Data Campus, and an agreement to sell its 50.1% Abernathy Joint Venture interest for about $530 million.

Risks

• HPC strategy execution — The company states its HPC business strategy may not perform as planned and could be affected by power supply reliability and timing, supply chain disruption, local labor availability, tariffs and trade restrictions, and in-house expertise.
• Construction cost and schedule — The business depends on completing Lake Mariner, Abernathy and other campuses, and the company says it cannot guarantee completion on time or within anticipated cost estimates; its stated cost guidance is $8-10 million per critical IT MW.
• Leverage and balance sheet position — At June 30, 2026 the company reported $7.90 billion of total liabilities against $147.3 million of shareholder equity, with long-term debt of $3.06 billion as of March 31, 2026.
• Revenue mix and bitcoin exposure — While HPC leasing is now the primary growth driver, the company still derives a significant portion of revenue from bitcoin mining, exposing results to bitcoin price volatility until contracted leasing fully replaces it.

Outlook

Management describes the second quarter as a move from platform formation to scaled execution, with the first CB-4 data hall in commissioning and phased delivery and rent commencement expected in the second half of 2026, and CB-5 targeted for early 2027. The company reaffirmed a target of contracting 250-500 MW of incremental critical IT capacity annually. It cites approximately $3.0 billion of cash and restricted cash and access to project-level financing as funding for contracted development. The Anthropic lease represents approximately $19 billion of contracted revenue over its initial 20-year term, or up to approximately $33 billion if both five-year extension options are exercised.