Shares of TeraWulf (NASDAQ: WULF) jumped greater than 25% Tuesday morning after the corporate introduced a pivot to AI.
TeraWulf, one of many largest publicly traded bitcoin miners, is accelerating its shift into synthetic intelligence infrastructure by a brand new three way partnership with AI cloud supplier Fluidstack.
The businesses plan to construct 168 megawatts (MW) of high-performance computing capability at TeraWulf’s Abernathy, Texas, campus below a 25-year internet hosting settlement valued at roughly $9.5 billion in contracted income.
TeraWulf will maintain a 51% stake within the enterprise and retain unique rights to take part in Fluidstack’s subsequent ~168 MW undertaking on related phrases. Development is predicted to be accomplished within the second half of 2026, with the whole undertaking costing $8 million to $10 million per MW, the corporate introduced.
To assist undertaking financing, Google has dedicated to again about $1.3 billion of Fluidstack’s long-term lease obligations, bettering the credit score profile of the three way partnership’s debt construction.
No fairness issuance or warrants have been included as a part of the deal.
The announcement expands TeraWulf’s contracted high-performance compute pipeline to greater than 510 MW and helps an up to date progress technique focusing on 250 MW to 500 MW of latest contracted capability yearly.
The corporate, finest recognized for its bitcoin mining operations, has more and more leaned into AI-focused knowledge middle growth amid a market shift towards GPU-based compute demand.
“Securing greater than 510 MW of vital IT load previously 10 months offers a direct proof-point of our progress technique,” CEO Paul Prager stated.
Alongside the growth, TeraWulf reported preliminary third-quarter income of $48 million to $52 million — up roughly 84% from a 12 months earlier — and adjusted EBITDA of $15 million to $19 million.
Bitcoin miners are pivoting to AI
Main Bitcoin mining firms are switching over to AI on prime of their mining efforts. Corporations like Marathon Digital, Riot Platforms, and CleanSpark are seeing robust inventory features however are additionally pivoting towards Synthetic Intelligence and Excessive-Efficiency Computing (HPC), leveraging their large-scale power and knowledge infrastructure.
This transition positions miners as rising know-how gamers past cryptocurrency, attracting investor curiosity.
Different firms, together with Core Scientific, Bitdeer, and Hut 8, are following go well with — Bitcoin miners have gotten key contributors to the AI-driven digital economic system whereas sustaining publicity to Bitcoin.
In response to their web site, TeraWulf is a U.S.-based digital asset know-how firm that owns and operates sustainable knowledge facilities for high-performance computing (HPC) and bitcoin mining.