TeraWulf Shifts Almost Fully to AI Computing as Mining Income Collapses 69%

TeraWulf, once known as a bitcoin miner, now earns most of its money by renting out computing space. Third quarter mining revenue dropped to $13.2 million from $43.4 million a year earlier, while high performance computing leases brought in nearly $63 million, up 774% from $7.2 million.

TeraWulf Q3 Results at a Glance

Total revenue reached $76.2 million, up 51% from last year, and leasing made up 83% of it compared with just 14% a year ago. Net income hit $709.9 million, but almost all of that came from a $728.4 million noncash gain tied to warrant and derivative values. The underlying picture is weaker, with an operating loss of $88.2 million, up from $24.7 million, and adjusted EBITDA of negative $12.8 million. Cash stood near $2.4 billion.

Capacity Under Construction

At Lake Mariner in New York, 102 MW of critical IT capacity was earning revenue on Sept. 30, with another 336 MW being built. One new building should begin paying rent in the fourth quarter and another in early 2027. At the Muskie campus in Kentucky, contracted power is set to grow from 500 MW to 1 GW, pending approval.

Anthropic Lease and Growth Targets

The company has a 20 year deal with Anthropic for about 401 MW at its Kentucky site, worth roughly $19 billion. This week it added a Google credit backstop and a construction contract with Fluor for three buildings, with first phases due in late 2027. CEO Paul Prager says each site now has a clear path forward, and the company wants 250 MW to 500 MW of new contracted capacity every year.