TeraWulf shares fell 1.91% to $18.52 on the day, even as the company posted a 52% jump in high-performance computing revenue to $31.9 million. The quarterly results showed the bitcoin miner is successfully pivoting toward contracted data center leasing, though Wall Street still sold the news.
HPC leasing now accounts for 71% of TeraWulf's total revenue at $44.8 million for the quarter. Digital asset revenue stayed flat at $12.8 million but has cratered year-over-year. The shift is deliberate. A 20-year lease agreement with Anthropic worth roughly $19 billion in initial revenue locked in the company's transformation into infrastructure-as-a-service operator.
Capacity and cash fuel expansion
Lake Mariner, TeraWulf's flagship facility, reached 102 megawatts of operating capacity after the CB-3 building came online in early July. That delivery unlocked $600 million in Google credit support for Fluidstack's lease obligations. Two more buildings, CB-4 and CB-5, will add 336 megawatts combined, with CB-4 expected to generate revenue in 2026 and CB-5 phased in starting early 2027.
The company closed June with $3 billion in cash and restricted cash, enough to fund construction, project financing, and expansion across multiple sites. Project costs at Lake Mariner have ticked up to $9.1 million per critical megawatt from $8.6 million previously, but management still targets $8 million to $10 million across the broader WULF Compute footprint.
TeraWulf reported a net loss of nearly $940 million for the quarter, mostly driven by a $755.7 million non-cash charge tied to Google warrants. The company's rising share price inflated the value of outstanding warrants, enlarging the accounting adjustment. Despite the paper loss, the company maintains its target of 250 to 500 megawatts of new contracted capacity annually.
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