TeraWulf's bitcoin mining revenue falls 69% as HPC leasing surges amid Anthropic buildout

TeraWulf's TeraWulf, Inc. (WULF) bitcoin Bitcoin (BTC) mining revenue fell to $13.2 million in the third quarter from $43.4 million a year earlier, a decline of about 69%, while the Nasdaq-listed company reported $63 million in high-performance computing (HPC) lease revenue, up 774% from $7.2 million in the same period last year.

Total revenue came to $76.2 million, an increase of 51% year over year, according to its latest earnings release on Friday, with HPC leasing accounting for 83% of that revenue compared to just 14% a year earlier. 

The company reported $709.9 million in net income attributable to shareholders for Q3, including a $728.4 million non-cash gain from changes in the fair value of warrant and derivative liabilities. Its operating loss widened to $88.2 million from $24.7 million a year ago, while adjusted EBITDA fell to negative $12.8 million.

Anthropic deal and data center expansion

TeraWulf said it had 102 MW of critical IT capacity generating revenue at its Lake Mariner site in New York as of Sept. 30, while construction is underway on another 336 MW. TeraWulf expects the latest data center building at the site to start generating rent in the fourth quarter and another in early 2027.

TeraWulf previously agreed to a 20-year lease with Anthropic for about 401 MW of critical IT capacity at its Justified campus in Kentucky. The agreement covers approximately $19 billion in contracted revenue over its initial term. Earlier this week, the company announced a Google credit backstop for project financing in support of Anthropic's lease and a definitive engineering, procurement, and construction agreement with Fluor Enterprises, covering three data center buildings. The first phases are scheduled for delivery in late 2027.

Meanwhile, at its Muskie campus in Kentucky, TeraWulf's contracted power capacity has increased from 500 MW to 1 GW, pending regulatory approval. 

"Lake Mariner is delivering contracted capacity and generating revenue, Justified has the customer, credit support and construction framework to move forward at scale, and Muskie gives us a contracted path to a gigawatt of power," TeraWulf Chairman and CEO Paul Prager said in the earnings release.

Across its portfolio, the company is targeting another 250 MW to 500 MW of contracted critical IT capacity each year. TeraWulf said it had about $2.4 billion in cash, cash equivalents, and restricted cash at the end of the quarter.

TeraWulf shares are up 8.1% at $10.90 in pre-market trading on Friday following the release.