TeraWulf acquires Beowulf E&D for $52.4 million

EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF), a company focused on zero-carbon energy-powered digital infrastructure, announced the acquisition of Beowulf Electricity & Data LLC and its affiliates, in a move to consolidate its operations and enhance strategic flexibility. The transaction, valued at approximately $52.4 million, comprises $3 million in cash and 5 million shares of TeraWulf common stock, with additional contingent payments based on future milestones.

The acquisition results in the integration of 94 Beowulf E&D employees, including those at the Lake Mariner site and corporate support personnel, into TeraWulf’s workforce. It also terminates an existing services agreement with Beowulf E&D, which involved significant ongoing payments.

TeraWulf’s Chief Strategy Officer, Kerri Langlais, stated that the acquisition bolsters the company’s vertical integration and energy expertise, crucial for supporting high-power compute operations and AI demands. It also simplifies the corporate structure, improving transparency for capital markets and broadening investor appeal by eliminating a related-party structure.

The deal was negotiated and approved by an independent committee of TeraWulf’s Board of Directors, with guidance from independent legal counsel and a fairness opinion from Piper Sandler & Co. TeraWulf maintains its 2025 cost guidance, with SG&A expenses projected at $40-$45 million and operating expenses at $20-$25 million.

TeraWulf operates the Lake Mariner facility, located on a former coal plant site in Western New York, focusing on bitcoin mining and hosting high-performance computing (HPC) workloads. The company emphasizes environmentally sustainable practices and is committed to ESG principles.

This strategic acquisition is expected to support TeraWulf’s growth in the data center business and its initiatives in project financing. The information in this article is based on a press release statement from TeraWulf Inc.

In other recent news, Terawulf Inc. reported its first-quarter 2025 earnings, showing a challenging financial situation as the company missed both earnings and revenue forecasts. The company posted an earnings per share of -$0.16, significantly below the expected -$0.04, and revenue was $34.4 million, falling short of the forecasted $46.07 million. Despite these challenges, the company is expanding its power capacity and advancing high-performance computing infrastructure. Meanwhile, Compass Point increased its price target for Terawulf to $6.50, maintaining a Buy rating, reflecting confidence in the company’s high-performance computing outlook. The company is scaling up its capacity and expects to maintain strong EBITDA margins, although it anticipates higher build costs. Citizens JMP analysts initiated coverage on Terawulf with a Market Outperform rating and a price target of $7.00, highlighting the company’s strategic shift into high-performance computing. This move is seen as a diversification from its primary bitcoin mining operations. The analysts noted Terawulf’s substantial power capacity as a valuable asset, which could yield significant value when fully leveraged. These developments come amid a broader market trend of risk aversion following a Moody’s downgrade of the U.S. credit rating, impacting cryptocurrency-linked stocks, including Terawulf.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.