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EASTON, Md. - TeraWulf Inc. (NASDAQ:WULF), a high-volatility tech stock with a market capitalization of $2.14 billion and a beta of 4.18, has secured two 10-year high-performance computing colocation agreements with AI cloud platform Fluidstack, representing approximately $3.7 billion in contracted revenue, the company announced Thursday. According to InvestingPro analysis, the company’s stock has shown significant momentum, delivering a 63% return over the past year.
Under the agreements, TeraWulf will deliver more than 200 megawatts of critical IT load at its Lake Mariner data center campus in Western New York. The contracts include two five-year extension options that could increase total revenue to approximately $8.7 billion if exercised. This expansion comes as InvestingPro data shows analysts anticipate a 47% revenue growth for the current fiscal year, though the company’s current ratio of 0.66 indicates potential liquidity challenges.
Google will backstop $1.8 billion of Fluidstack’s lease obligations to support project-related debt financing. In return, Google will receive warrants to acquire approximately 41 million shares of TeraWulf common stock, equating to roughly 8% pro forma equity ownership.
The first phase, comprising approximately 40 megawatts of critical IT load, is expected to come online in the first half of 2026, with the full capacity deployed by year-end 2026.
TeraWulf CEO Paul Prager called the transaction "a defining moment" for the company, highlighting the Lake Mariner facility’s capabilities for AI infrastructure powered by "low-cost, predominantly zero-carbon energy."
The company estimates site net operating income margins of 85%, implying approximately $315 million annually. Total project costs are projected at $8-$10 million per megawatt of critical IT load.
TeraWulf also noted it has been granted 30-day exclusivity for an additional potential 160 megawatts of critical IT load at its Lake Mariner facility.
The company plans to access capital markets to fund a portion of the project. Morgan Stanley is serving as sole financial advisor to TeraWulf for the transaction.
The information in this article is based on a company press release statement.
In other recent news, TeraWulf Inc. reported second-quarter earnings that surpassed analyst expectations. The company posted adjusted earnings per share of $0.05, significantly beating the consensus estimate of -$0.06. Revenue for the quarter reached $47.6 million, slightly above the forecasted $46.97 million and marking a 34% increase from $35.6 million in the same period last year. These financial results have been positively received, highlighting the company’s strong performance in recent months. Analyst firms have noted the earnings beat as a significant development for TeraWulf. The company’s financial achievements reflect its ongoing growth and operational efficiency. These developments are part of a broader trend in the industry, with TeraWulf showing resilience and adaptability in a competitive market.
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