TeraWulf’s AI Leasing Business Takes Over the Top Line as Shares Climb 11% on Q3 Results

TeraWulf (NASDAQ: WULF) shares rose about 11% Friday after the company’s third-quarter results showed high-performance computing leases now generate the bulk of its revenue. As a result, the former bitcoin miner is increasingly being valued as an AI infrastructure landlord.

Key Points

• HPC lease revenue reached $63.0 million in Q3, about 83% of TeraWulf’s $76.2 million in total revenue.
• Management outlined a target of roughly $700 million in annualized leasing revenue exiting the first quarter of 2027, according to Seeking Alpha’s report on the call.
• TeraWulf has 102 MW of revenue-generating capacity online and 336 MW under construction at Lake Mariner.
• The company ended the quarter with about $2.4 billion in cash, cash equivalents and restricted cash.

Leasing Now Drives the Business

TeraWulf’s revenue mix shifted sharply in the quarter. HPC leasing brought in $63.0 million, while digital asset revenue contributed just $13.2 million. In other words, bitcoin mining is now a minor part of the story.

The company currently has 102 MW of critical IT capacity generating revenue at its Lake Mariner campus in New York. Meanwhile, another 336 MW is under construction across its CB-4 and CB-5 buildings. CB-4 is expected to begin paying rent in the fourth quarter of 2026, and CB-5 is targeted for phased delivery starting in early 2027. That build-out underpins the roughly $700 million run-rate target management discussed on the call.

CEO Paul Prager said Lake Mariner is delivering contracted capacity and generating revenue.

The Anthropic Campus Moves Forward

Beyond Lake Mariner, TeraWulf is building a larger growth engine. Its 20-year lease with Anthropic covers about 401 MW at the Justified site and represents roughly $19 billion of contracted revenue. Phased completions are expected from late 2027 through the second quarter of 2028.

In addition, the company executed a definitive engineering, procurement and construction agreement with Fluor for three data center buildings. A Google credit backstop supports the anticipated project financing. PRISM MarketView covered that milestone earlier this week when TeraWulf secured Google credit support for its $19 billion Anthropic campus and signed Fluor to build it.

TeraWulf also expanded its pipeline. Contracted power at its Muskie site doubled from 500 MW to 1,000 MW, subject to Kentucky regulatory approval, and the company reaffirmed its goal of contracting 250 to 500 MW of new critical IT capacity each year.

Reading the Profit Line Carefully

The headline earnings figure needs context. TeraWulf reported net income of about $710 million attributable to the company, but that result came largely from a $728.4 million non-cash gain tied to the fair value of warrants and derivatives. On an operating basis, adjusted EBITDA was negative $12.8 million, compared with positive $18.1 million a year earlier.

Still, the balance sheet gives TeraWulf room to execute. Beyond its $2.4 billion in cash, the company raised its revolving credit facility to $400 million and expects further proceeds from its Abernathy sale by April 2027.

A Bounce for the Sector

TeraWulf’s rally follows a rough stretch for AI-linked miners. PRISM MarketView reported yesterday that IREN sank about 18% ahead of earnings as a Microsoft delay report dragged the index lower. Today, by contrast, TeraWulf’s results suggest that miners with signed long-term AI leases can deliver the revenue visibility investors have been looking for. Earlier today, MARA cleared a key FERC hurdle for its own AI-focused Long Ridge deal.

TeraWulf is a component of the PRISM Crypto Mining Index.