TeraWulf’s high-performance computing (HPC) leasing business generated $31.9 million in second-quarter revenue, rising 52% from the previous quarter and accounting for roughly 71% of the company’s total revenue, according to its quarterly results. The figures place contracted data center leasing ahead of Bitcoin mining as the company’s primary source of operating revenue, marking a rapid change in the business model of a firm built around large-scale digital asset infrastructure.
Total revenue reached $44.8 million in the quarter. Digital asset revenue contributed $12.8 million, which TeraWulf described as broadly flat from the first quarter but sharply below the $47.6 million recorded a year earlier. Patrick Fleury, TeraWulf’s chief financial officer, said during the company’s earnings call that the quarter reflected a revenue mix increasingly weighted toward contracted HPC income.
That mix gives TeraWulf a larger share of revenue tied to long-term capacity agreements rather than Bitcoin production, whose value can vary with token prices, network difficulty and mining economics. The company is using its existing power infrastructure and data center campuses to serve customers running compute-intensive workloads, including artificial intelligence systems.
Warrant accounting drove reported loss
TeraWulf reported a net loss attributable to shareholders of nearly $940 million for the second quarter, compared with a $427.6 million loss in the first quarter. The company said most of the loss stemmed from a $755.7 million adjustment connected to warrants issued to Google.
The adjustment followed an increase in TeraWulf’s share price, which raised the accounting value of the warrants. Such warrant revaluations can substantially affect a company’s reported net income or loss without matching a comparable change in quarterly revenue from its operating businesses.
Shares of TeraWulf, which trade under the ticker WULF, fell by less than 1% following the earnings release. The stock remained up about 47% year to date, according to the market performance figures cited by the company’s earnings coverage.
Lake Mariner capacity reaches 102 MW
At the end of the second quarter, TeraWulf had 81 megawatts of revenue-generating IT capacity operating at its Lake Mariner campus in New York. The company completed its third compute building, known as CB3, in early June, increasing operating capacity at the site to 102 MW.
Completion of CB3 also activated $600 million in credit support from Google tied to Fluidstack’s lease arrangement, according to TeraWulf. The credit support is intended to help fund the buildout required to deliver contracted computing capacity.
The first data hall in the fourth Lake Mariner compute building, CB4, is expected to begin generating leasing revenue in late September. TeraWulf expects the first data hall in CB5 to begin energizing in early 2027.
The construction program is becoming more expensive. TeraWulf estimated Lake Mariner project costs at about $9.1 million per megawatt, compared with roughly $8.6 million per MW financed in October. Paul Prager, TeraWulf’s chief executive officer, said New York Governor Kathy Hochul’s recently announced data center moratorium would not alter development schedules at either Lake Mariner or the company’s Lake Hawkeye site.
The rising capital cost illustrates the trade-off facing former mining-focused operators moving into HPC hosting. Their existing grid connections and operational experience provide an entry point into a market where power availability is scarce, but customers expect highly reliable facilities, cooling systems and delivery schedules that require large upfront spending.
Anthropic lease expands Kentucky plans
After the quarter ended, TeraWulf signed a 20-year lease with Anthropic covering approximately 401 MW at its Justified Data Campus in Kentucky. TeraWulf valued the contracted revenue from the agreement at about $19 billion.
The agreement could reach roughly $33 billion if Anthropic exercises both five-year extension options, based on the terms disclosed by TeraWulf. The scale of the lease would make the Kentucky campus a major part of the company’s planned HPC portfolio rather than a secondary expansion beyond Lake Mariner.
TeraWulf also agreed to sell its majority stake in the Abernathy joint venture for about $530 million. The transaction would give the company additional financial flexibility as it pursues capital-intensive data center construction and seeks to match capacity additions with signed customer agreements.
Management reaffirmed its objective to contract an additional 250 MW to 500 MW of IT capacity annually. TeraWulf entered the third quarter with 102 MW of revenue-generating capacity online at Lake Mariner, leaving the company’s current operating base far below the scale of its newly announced Kentucky commitment.
The second-quarter results show that TeraWulf’s near-term performance will increasingly depend on executing its data center construction schedule, managing higher per-megawatt costs and converting contracted capacity into operating revenue. Bitcoin mining remains part of the company’s business, but the revenue figures now show that HPC leasing has become the central engine of its expansion.
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