TeraWulf Revenue Jumps 70% as HPC Leasing Expands
Key Takeaways
- HPC lease revenue reached $63.0 million, making up 83% of the $76.2 million quarterly total.
- Lake Mariner has 102 MW online with 336 MW of additional capacity currently being built.
- A Google credit backstop was established to aid financing for the $19 billion Anthropic lease.
TeraWulf (NASDAQ: WULF) reported third-quarter revenue of $76.2 million as high-performance computing leases accounted for most of its sales, while adjusted earnings remained negative as the company expanded its data-center portfolio.
HPC lease revenue reached $63 million, or about 83% of total revenue, according to the company’s Nov. 6 earnings release. Total sales rose about 70% from the second quarter, while HPC lease revenue nearly doubled from $31.9 million. The business accounted for roughly 71% of revenue in the previous quarter.
Net income was approximately $709.9 million, benefiting from a noncash change in the fair value of warrants. Adjusted earnings before interest, taxes, depreciation and amortization showed a loss of approximately $12.8 million. The company also recognized a $95 million gain from selling its interest in the Abernathy joint venture.
The results show the growing contribution from data-center leasing as TeraWulf repurposes portions of its bitcoin-mining infrastructure for AI and HPC customers. Its next phase of growth depends on completing additional facilities and bringing contracted capacity into service.
At Lake Mariner in New York, TeraWulf had 102 megawatts of revenue-generating critical IT capacity operating as of Sept. 30, with another 336 megawatts under construction. Critical IT capacity measures power available for computing equipment.
The company expects phased delivery and rent commencement at its CB-4 building during the fourth quarter, followed by initial phased delivery at CB-5 in early 2027. Development costs remain within its previously disclosed guidance of $8 million to $10 million per critical IT megawatt.
In Kentucky, TeraWulf is advancing its Justified campus under a 20-year lease with Anthropic covering approximately 401 megawatts. The agreement, announced in July, represents about $19 billion in contracted revenue over its initial term.
On Nov. 4, TeraWulf announced Google credit support intended to underpin project financing and a definitive engineering, procurement and construction agreement with Fluor covering three buildings. Phased completions are expected to begin in late 2027 and continue through the second quarter of 2028. Guaranteed maximum pricing is being established as engineering and procurement progress, according to that announcement.
At its Muskie campus, amended utility agreements increased contracted power capacity to 1,000 megawatts from 500 megawatts, subject to Kentucky Public Service Commission approval. The second 500-megawatt phase is now anticipated in 2029, a year earlier than previously planned. Utility power capacity includes electricity needed for cooling and other facility systems as well as computing equipment.
TeraWulf ended September with approximately $2.4 billion in cash, cash equivalents and restricted cash. After quarter-end, it increased revolving credit commitments to $400 million from $250 million, with a conditional, uncommitted provision for another $150 million.
The company received $250 million during the quarter from selling its 50.1% Abernathy interest. Further payments of $150 million and approximately $130 million are expected by Dec. 31, 2026, and April 30, 2027, respectively, with the latter subject to adjustments.
Shares were quoted up 8% in premarket trading hours on Friday, after falling 13.9% in the previous regular session.
