TeraWulf's Data Centre Leasing Makes Up 83% of Revenue as Bitcoin Mining Sales Fall 69%

A year earlier, HPC leasing brought in $7.2 million out of $50.6 million in revenue. Revenue from digital assets, its mining business, fell to $13.2 million from $43.4 million in the third quarter of 2025, a decline of about 69%.

The shift matters because TeraWulf is one of several former crypto miners whose power connections and sites have become valuable to AI developers short of compute. Its biggest contract is a 20-year lease with Anthropic for about 401 MW of critical IT capacity at its Justified campus in Kentucky, which the company said represents about $19 billion of contracted revenue over the initial term. Phased handovers there are expected to start in late 2027 and run through the second quarter of 2028.

On November 4 the company announced that Google would provide a credit backstop to support project financing for the Anthropic lease. It has also signed a definitive engineering, procurement and construction agreement with Fluor Enterprises covering three data centre buildings at Justified.

Profit Driven by Warrants

TeraWulf reported net income attributable to the company of $709.9 million for the quarter. Nearly all of that came from a non-cash gain of $728.4 million on the change in fair value of warrant and derivative liabilities, and the company also booked a $95.0 million gain on the sale of its Abernathy site. Adjusted EBITDA, a non-GAAP measure, was negative $12.8 million, compared with positive $18.1 million a year earlier.

For the first nine months of the year, revenue was $155.0 million, of which $115.9 million came from HPC leases. The company recorded a net loss of $659.0 million over that period.

Capacity and Cash

At its Lake Mariner site in New York, TeraWulf had 102 MW of revenue-generating critical IT capacity online at September 30, with 336 MW under construction across two buildings, CB-4 and CB-5. The company said CB-4 is on track for phased delivery and the start of rent in the fourth quarter of 2026, and CB-5 is due to begin phased delivery in early 2027. It said construction under its WULF Compute unit is running within its guidance of $8 million to $10 million per critical IT megawatt.

At its Muskie campus, also in Kentucky, contracted power has been raised from 500 MW to 1,000 MW through amended agreements with Kentucky Power Company, subject to approval by the Kentucky Public Service Commission. The company now expects the second 500 MW phase to be delivered in 2029.

TeraWulf ended the quarter with about $2.4 billion in cash, cash equivalents and restricted cash. After the quarter, commitments under its revolving credit facility rose to $400 million from $250 million. It received $250 million from the Abernathy sale in the third quarter, with $150 million more due by December 31 and about $130 million by April 30, 2027.

"Third-quarter results reflect strong execution across the business," chairman and chief executive Paul Prager said in the release. Chief financial officer Patrick Fleury pointed to Lake Mariner "progressing within cost guidance and Justified supported by investment-grade credit."

The company did not give revenue or earnings guidance. It reaffirmed its aim to contract between 250 MW and 500 MW of additional critical IT capacity each year.