TeraWulf's HPC Pivot Accelerates as Anthropic Signs $19 Billion Lease
TeraWulf reported second-quarter revenue of $44.8 million as HPC leasing grew to 71% of the mix and Anthropic signed a 20-year lease worth roughly $19 billion at its Justified Data Campus.
TeraWulf (WULF) reported second-quarter revenue of $44.8 million, up 31.7% from $34.0 million in the first quarter and above the company's preliminary guide of $30 million to $35 million. The bitcoin miner turned high-performance-computing landlord posted a net loss attributable to the company of $939.9 million, widened sharply from $18.4 million a year earlier, as a $755.7 million non-cash change in the fair value of warrants swamped the underlying operating results.
The quarter's defining shift was the continued handover of TeraWulf's revenue base from bitcoin mining to long-term data-center leasing. HPC lease revenue rose to $31.9 million, or 71% of total revenue, from $21.0 million and 62% of revenue in the first quarter, extending a ramp that had already pushed leasing past half of total revenue in the preliminary Q1 release. Digital-asset mining revenue fell to $12.8 million from $47.6 million a year earlier, down 73%, as the company reallocates power toward contracted compute customers rather than mining.
That reallocation showed up directly in capacity figures. Revenue-generating critical IT capacity at the company's Lake Mariner site reached 102 megawatts after the CB-3 building was completed in early July, up from 81 megawatts at the end of June and 60 megawatts at the end of March. TeraWulf also disclosed 336 megawatts of additional capacity under construction at Lake Mariner across the CB-4 and CB-5 buildings, up from the prior quarter's description of those buildings as merely on schedule for delivery in 2026.
The leasing pivot produced its most consequential disclosure as a subsequent event: Anthropic signed a 20-year lease for roughly 401 megawatts at the Justified Data Campus, valued at approximately $19 billion over the initial term and up to $33 billion including extensions. The Q1 release had described Justified only as an acquired site with 480 megawatts of available power and no signed tenant, making the Anthropic agreement a rapid conversion of undeveloped capacity into contracted revenue. TeraWulf also disclosed a new acquisition, the Muskie Data Campus in eastern Kentucky, spanning roughly 308 acres with up to 1 gigawatt of contracted electric service from Kentucky Power, and its Chesapeake Data Campus in Morgantown cleared FERC authorization on July 29, removing a key condition to closing that deal.
The expansion came with a corresponding jump in costs and dilution. SG&A expense, including related-party charges, rose roughly ninefold to $126.9 million from $14.3 million a year earlier, including $83.9 million of stock-based compensation versus $1.3 million in the prior-year quarter and a one-time $14.4 million stock-based charitable contribution. Non-GAAP adjusted EBITDA swung to a loss of $18.3 million from a profit of $14.5 million a year earlier, a deterioration of $32.9 million. Common shares outstanding grew 18.8% to 498.9 million from 420.1 million at year-end 2024, largely reflecting a $900 million common stock offering, upsized from $800 million, that priced at $19.00 a share and closed April 16.
TeraWulf's balance sheet grew alongside the buildout. Total assets nearly doubled to $8.05 billion from $6.56 billion at year-end 2024, driven by property, plant and equipment climbing to $3.60 billion from $1.51 billion. Cash and restricted cash slipped to about $3.0 billion at quarter-end from roughly $3.1 billion at the end of March, after $1.38 billion of capital expenditures and $231.4 million paid for an asset acquisition over the first six months, partly offset by $1.2 billion in stock issuance proceeds. Short-term convertible notes jumped to $1.10 billion from $489.8 million at year-end 2024 as notes moved from long-term to current classification, while warrant liabilities more than doubled to $1.82 billion from $844.7 million.
TeraWulf also disclosed an agreement to sell its entire 50.1% interest in the Abernathy joint venture for approximately $530 million, a reversal from the first quarter's description of Abernathy as an active 168-megawatt, 25-year lease development targeted for delivery in the fourth quarter. The sale, alongside the Anthropic lease and the Muskie and Chesapeake acquisitions, points to a company actively reshaping its site portfolio as it leans further into contracted HPC hosting.