TeraWulf Posts $76.2 Million in Q3 Revenue as AI Leasing Outpaces Mining

Digital infrastructure operator TeraWulf reported third-quarter revenue of $76.2 million, up 70% from $44.8 million in the second quarter, driven almost entirely by leases for high-performance computing and artificial intelligence workloads.

The results illustrate how rapidly power-rich digital infrastructure developers are pivoting away from pure-play cryptocurrency mining toward hyperscale compute leases. Long-term power interconnects have become the defining bottleneck for artificial intelligence deployments, enabling infrastructure owners to secure long-dated tenant commitments with investment-grade counterparties.

High-performance computing lease revenue nearly doubled sequentially to $63 million, accounting for roughly 83% of total revenue during the quarter, Chief Financial Officer Patrick Fleury said during the company's earnings call, according to transcript reporting published by Yahoo Finance (https://www.marketbeat.com/instant-alerts/transcript-what-terawulf-wulf-said-on-its-q3-earnings-call-2026-11-06/?utm_source=yahoofinance&utm_medium=yahoofinance&.tsrc=rss). Chief Executive Officer Paul Prager said scheduled capacity additions at the company's Lake Mariner facility in western New York should lift annualized run-rate leasing revenue to approximately $700 million by the end of the first quarter of 2027.

At Lake Mariner, the CB3 building reached 102 megawatts of operating capacity generating lease revenue during the third quarter under an agreement with Fluidstack that commenced on July 13. Chief Technology Officer Nazar Khan said tenant hardware has already been installed and energized in the first two data halls of the CB4 building, with the final two halls scheduled to come online later in the fourth quarter. TeraWulf expects to exit the year with an additional 168 megawatts energized at CB4, followed by another 168 megawatts at CB5 by the end of the first quarter of 2027.

Fleury estimated capital expenditures for the Lake Mariner WULF Compute project at approximately $8.9 million per critical IT megawatt, within the firm's $8 million to $10 million target range. As of September 30, the company had completed roughly $2.9 billion in capital spending on the buildout, leaving approximately $1 billion in remaining capital commitments.

In Hawesville, Kentucky, TeraWulf is advancing construction at its Justified campus, which is anchored by a 20-year, $19 billion lease agreement with Anthropic. To fund the remainder of the buildout without issuing common stock, the company plans to use project-level debt supported by a contractual credit backstop from Google. Under that agreement, Google shields lenders against an Anthropic lease default through either a mandatory lease assumption or a debt-reducing termination payment. The cost of the backstop is recoverable from Anthropic and terminates if the AI company secures specified investment-grade ratings.

TeraWulf also entered into a definitive engineering, procurement, and construction agreement on a guaranteed maximum price basis with Fluor covering all three data center buildings at Justified. Khan said engineering drawings are approximately 90% complete and scheduled for final delivery by December 1, while long-lead procurement has surpassed 80%. Foundation piling is underway, with phased ready-for-service milestones targeted from late 2027 through the second quarter of 2028 at an estimated cost of $10 million to $12 million per critical IT megawatt.

At a third site, the Muskie campus in eastern Kentucky, TeraWulf is working alongside American Electric Power subsidiary Kentucky Power to establish up to one gigawatt of power capacity. The first 500 megawatts is scheduled for delivery in 2028 under an existing electric service agreement. The subsequent 500 megawatts depends on regional grid additions, including Kentucky Power's proposed 760-megawatt Big Sandy combined-cycle gas plant, which awaits state regulatory approval by mid-2027.

TeraWulf reported net income attributable to the company of $709.9 million, compared with a net loss of $939.9 million in the second quarter. The swing into statutory profitability was driven primarily by noncash fair-value gains on Google warrants alongside gains from selling an equity stake in its Abernathy joint venture. Non-GAAP adjusted EBITDA remained negative at $12.8 million, an improvement from negative $18.3 million in the preceding quarter.

The company held $2.4 billion in cash and restricted cash at the close of the quarter. Management stated that current cash reserves and anticipated proceeds from the Abernathy sale will fund remaining Lake Mariner capital commitments, Justified equity contributions, and interim Muskie letter-of-credit deposits without requiring dilutive equity financing.