stockrowWhat it does
TeraWulf owns, develops and operates digital infrastructure in the United States. It is shifting its focus from bitcoin mining toward hosting high-performance computing, or HPC: the large computing workloads used for artificial intelligence, machine learning and advanced cloud applications. Founded in 2021, the company is headquartered in Easton, Maryland, and led by CEO Paul Prager.
For hosting customers, TeraWulf develops data centers with access to electricity, cooling and network infrastructure, then leases capacity under long-term arrangements. Its customers include large cloud and enterprise users that need space and power for computing equipment. TeraWulf controls land through ownership or long-term leases and manages infrastructure such as grid connections and electrical and cooling systems. The company says it does not own the GPUs used by its hosting customers.
TeraWulf also owns specialized computers that validate transactions on the bitcoin network. Its mining operations use existing infrastructure at the Lake Mariner campus in New York. As of December 31, 2025, the site operated 245 MW of legacy bitcoin mining capacity and had 18 MW of critical IT HPC capacity. Critical IT capacity refers to the power available for customers’ computing equipment.
The company’s development model adds capacity in phases, with construction aligned to customer schedules and power availability. Its operating focus and future capital allocation are centered on HPC hosting rather than new mining investment.
How it makes money
TeraWulf earns revenue from bitcoin mining and, increasingly, from leasing data center capacity. Its mining computers perform work on the bitcoin network, and the company has used proceeds from selling bitcoin to help fund operations. Mining profitability depends on the value of bitcoin, network mining difficulty, electricity costs and the efficiency of its equipment.
In HPC hosting, customers lease data center capacity and power for their computing workloads. TeraWulf’s arrangements typically have base terms ranging from 10 to 25 years, with contractual rent escalators and renewal or contraction options. Those leases can generate recurring rent once facilities are completed and leases commence. The company also earns revenue from tenant fit-out work and passes certain power costs through to customers without a markup.
Crypto mining revenue was $151.6 million in FY2025; total revenue was $76.2 million in the third quarter of 2026. The company reported $63.0 million of HPC lease revenue in that quarter, including $46.0 million of rent and $11.3 million of tenant fit-out revenue.
The revenue mix has changed as data center capacity has entered service. Certain Core42 leases began in 2025, and CB3 at Lake Mariner was online and earning revenue under a Fluidstack contract by the third quarter of 2026. TeraWulf expects the mix to continue shifting toward HPC leasing as contracted capacity is delivered and energized.
The company funds development through sources including operating cash, bitcoin sales, debt, equity and project-level financing. It expects future capital deployment to focus on contracted HPC projects and development opportunities rather than incremental growth capital for mining.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Crypto Mining | $151.6 million | 100.0% | 8.83% |
Customers and how it sells
TeraWulf serves hyperscale and enterprise customers through long-term data center leases. Its named customers include Core42 and Fluidstack at Lake Mariner in Barker, New York. The Core42 arrangements cover 60 MW of critical IT load, while the Akela Fluidstack leases cover 378 MW. Google provides credit support for Fluidstack’s payment and performance obligations under the Akela leases.
The company has also signed a long-term lease with Anthropic at the Justified Data campus in Hawesville, Kentucky. TeraWulf says the lease represents approximately $19 billion of contracted revenue over its initial 20-year term. Google has provided credit support connected with financing for the project; the company says that support becomes effective upon lease commencement and falls away if Anthropic achieves certain investment-grade credit ratings.
TeraWulf’s sites and employees are in the United States. Its development locations include Lake Mariner and the Cayuga site in New York, and Justified and Muskie in Kentucky. TeraWulf previously held a 50.1% interest in the Abernathy campus joint venture in Texas; its third-quarter 2026 results included a gain on the sale of that interest.
The company depends on significant HPC customers. If a customer fails to pay, defaults or becomes insolvent, TeraWulf may face delays and costs in enforcing its rights under a lease.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Digital Asset Mining Segment | $151.6 million | 100.0% | 8.21% |
Suppliers and costs
Electricity is central to both TeraWulf’s mining and data center operations. Lake Mariner draws power from the New York grid, including 90 MW allocated under a long-term arrangement with the New York Power Authority. At Muskie in Kentucky, the company has an electricity service agreement with Kentucky Power for the first 500 megawatts; the next 500 megawatts requires new generation.
Substantially all of TeraWulf’s specialized bitcoin miners were manufactured by Bitmain. Power is the most significant direct expense in bitcoin mining. The company’s HPC costs include power, tenant fit-out work, site labor, security and other operating expenses, as well as construction and development spending before capacity begins earning rent.
TeraWulf has a definitive engineering, procurement and construction agreement for the three data center buildings at Justified. The agreement includes delivery milestones, cost reporting and contractual protections; guaranteed maximum pricing is being established as engineering and procurement progress. The company expects to fund the remaining capital requirement for Justified with project-level debt.
For the third quarter of 2026, the company reported $57.1 million of selling, general and administrative expense. It has incurred operating losses and says its development plans require substantial capital investment.
- Revenue$168.5M
- Cost of revenue−$82.7M
- Selling, general and administrative−$147.8M
- Other operating costs−$124.2M
- Operating income−$186.2M
Competitive position
TeraWulf competes for sites, electricity, capital and customers in the market for data centers serving HPC and AI workloads. Its competitors include data center real estate investment trusts, independent developers, hyperscalers, infrastructure funds and some digital asset miners converting infrastructure for HPC use. The company identifies site availability, power economics, execution capability, access to capital and customer relationships as competitive factors.
TeraWulf’s CEO has discussed a deal structure used by Riot, while saying it is not currently TeraWulf’s primary focus. The company does not give details of that deal structure in the discussion.
TeraWulf controls land, grid interconnection rights and electrical and cooling infrastructure at its sites. It also has in-house experience in power generation, transmission and large-scale energy infrastructure. Our reading: control of sites and power connections can be a meaningful source of competitive strength, but expansion still depends on obtaining power, approvals and capital.
Its long-term leases and credit support can help finance development. Our reading: those contracts can make the platform harder to replicate, although their value depends on completing facilities and bringing leases into effect. The company does not currently hold patents; it relies on trade secrets, trademarks, copyrights and contractual protections.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Riot Platforms, Inc. | Digital infrastructure deals | Low |
Growth opportunities
TeraWulf’s growth plan centers on turning contracted data center capacity into operating facilities, then expanding in phases as customer demand and power become available. The company targets contracting an incremental 250 to 500 megawatts of critical IT capacity annually and believes its existing portfolio can support that target.
At Lake Mariner, CB3 was operating and earning lease revenue in the third quarter of 2026. The company expects CB4 and CB5 to enter service in phases, and it is planning a further expansion at the campus. TeraWulf expects more than $700 million of annualized lease revenue once the campus is fully ramped.
At Justified in Kentucky, TeraWulf has an Anthropic lease and Google credit support. Construction is underway, and the company targets phased ready-for-service deliveries beginning in late 2027 and continuing through the second quarter of 2028. It says it has the equity required under its current plan and expects to fund the remaining capital requirement with project-level debt.
Muskie is another Kentucky development opportunity. TeraWulf says it has a contracted path to an initial gigawatt of electric service and is discussing potential leases with prospective customers. The first 500 megawatts begins delivering in 2028; additional capacity requires new generation. The company says it will develop the site in phases and raise and deploy capital alongside contracted demand.
- $13.4MFY2020
- $15.0MFY2022
- $69.2MFY2023
- $140.1MFY2024
- $168.5MFY2025
Structural risks
- Construction and delivery: TeraWulf may not complete campuses on time or within estimated costs. Parts, labor, permitting and site readiness can delay construction, and some customers may terminate leases after significant delays.
- Customer and credit support: The company depends on significant HPC customers. Certain backstops, including Google’s support for applicable Fluidstack leases, only become effective after lease commencement and do not cover every termination event.
- Power and interconnection: Power shortages, outages, higher electricity costs or delays in transmission and grid connections could disrupt operations or limit expansion. The time and cost required to secure interconnections have increased.
- Financing: HPC development is capital-intensive. TeraWulf expects to raise additional capital, which may be unavailable or come with restrictive terms; equity financing may dilute shareholders.
- Bitcoin exposure: Mining profitability depends on bitcoin’s volatile value, electricity costs and network conditions. Bitcoin halving reduces the number of new bitcoin awarded for solving a block and may reduce mining revenue.
- Demand and technology: More efficient AI models could reduce the computing power needed for training and potentially lower demand for high-power-density, liquid-cooled data centers. HPC demand may not develop as the company anticipates.
Bottom line
Our reading
TeraWulf is moving from bitcoin mining toward a business built around long-term leases for powered data center capacity. Our reading: site and power control, customer contracts and credit support provide a basis for that transition, but completing the projects and financing them remain central to realizing the contracted revenue. Bitcoin economics continue to matter while the hosting platform expands.