TeraWulf HPC leasing revenue jumps 52%, widening lead over bitcoin mining

TeraWulf reported Q2 revenue of $44.8 million, with high-performance computing leasing contributing 71%, up from 62% in the prior quarter.

"The second quarter marked another meaningful step in the transformation of our financial profile, with HPC leasing representing approximately 71% of total revenue," Patrick Fleury, chief financial officer of TeraWulf, said.

HPC lease revenue rose 52% quarter over quarter to $31.9 million, while digital asset revenue fell to $12.8 million from $47.6 million a year earlier. Total revenue declined 6% year over year. Net loss attributable to TeraWulf widened to $939.9 million, or $1.94 a share, from $18.4 million a year earlier, driven largely by a $755.7 million swing in the fair value of warrant liabilities.

The results mark TeraWulf's continued shift from bitcoin mining toward AI data-center leasing, a transition that has drawn investor attention. Shares rose 6.7% to about $18.85 on Aug. 3 after B. Riley Securities raised its price target to $40 from $32 with a Buy rating.

At Lake Mariner in New York, 102 MW of revenue-generating critical IT capacity is online, with 336 MW under construction. The delivery of CB-3 unlocked $600 million of Google's credit support for Fluidstack's lease obligations, strengthening the contracted revenue profile.

After the quarter, TeraWulf signed a 20-year lease with Anthropic for about 401 MW of critical IT capacity at its Justified campus in Kentucky, expected to generate roughly $19 billion of contracted revenue. The company also agreed to sell its interest in the Abernathy Joint Venture for about $530 million and acquired the gigawatt-scale Muskie Data Campus.

TeraWulf reaffirmed its target of contracting 250 MW to 500 MW of incremental critical IT capacity annually. The company held $2.6 billion in cash and equivalents at quarter-end, with total assets of $8.05 billion.

The revenue mix shift gives TeraWulf a more contracted, recurring earnings base than bitcoin-mining peers such as Core Scientific and IREN. Investors will watch the company's earnings call at 8 a.m. Eastern on Aug. 5 for updates on Fluidstack rental commencements and delivery timelines.

This article is for informational purposes only and does not constitute investment advice.