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

TeraWulf's high-performance computing lease revenue jumped 52% quarter-over-quarter to $31.9 million as the segment extended its lead over the company's legacy bitcoin mining business.

HPC leasing accounted for roughly 71% of TeraWulf's $44.8 million in Q2 revenue, up from 62% in the prior quarter. Digital asset revenue was relatively flat quarter-over-quarter at $12.8 million but down sharply compared to $47.6 million a year earlier.

"The second quarter reflects a financial profile increasingly driven by long-term, contracted HPC revenue," CFO Patrick Fleury said during the company’s earnings call Wednesday.

TeraWulf (WULF) reported a net loss attributable to shareholders of nearly $940 million, widening from $427.6 million in the first quarter. The loss was mostly driven by a $755.7 million adjustment tied to the increased value of warrants issued to Google as TeraWulf's stock price rose.

TeraWulf shares (WULF) were down less than 1% following the earnings release, though the stock is up roughly 47% year-to-date.

TeraWulf operated 81 MW of revenue-generating IT capacity at its Lake Mariner Campus in New York as of the end of the quarter. It completed CB3 — the third compute building at the site — in early June, raising its operating capacity to 102 MW and activating $600 million of Google credit support for Fluidstack's lease.

The first data hall inside CB4 is expected to begin generating lease revenue in late September, while CB5 is scheduled to begin energizing its first data hall in early 2027.

Estimated Lake Mariner project costs have increased to approximately $9.1 million per megawatt from the roughly $8.6 million per MW financed in October.

CEO Paul Prager also said New York Gov. Kathy Hochul's recent data center moratorium would not disrupt development timelines at Lake Mariner or Lake Hawkeye in the state.

Following the quarter, TeraWulf signed a 20-year lease with Anthropic covering approximately 401 MW at its Justified Data Campus in Kentucky, worth roughly $19 billion in contracted revenue. It also agreed to sell its majority interest in the Abernathy joint venture for approximately $530 million.

The company reaffirmed its target of contracting an additional 250 MW to 500 MW of IT capacity annually.