Bitcoin Mining Profitability Rises 2% in July Amid Price Rally and Increased Hashtag Rate

Bitcoin mining profitability rose 2% in July as the BTC price rallied 7% and network hashrate jumped 5%, according to a Jefferies research report. U.S.-listed mining companies mined 3,622 BTC, accounting for 26% of the network. MARA Holdings mined the most BTC, followed by IREN, while CleanSpark had the second-largest energized hashrate. Revenue per exahash/second also increased to $57k/day for a hypothetical one EH/s fleet of BTC miners.

In a significant shift in its business strategy, Terawulf Inc. (WULF) has transformed from a Bitcoin mining company to a provider of AI infrastructure, capitalizing on the growing demand for hyperscale AI data centers. The company's strategic pivot, anchored by partnerships with FluidStack and Google, positions it as a key player in the burgeoning AI infrastructure market.

Terawulf's $3.7 billion, 10-year colocation agreement with FluidStack, supported by Google's $1.8 billion backstop, is a cornerstone of this transformation. This agreement secures 200+ MW of critical IT load at its Lake Mariner campus, delivering a purpose-built, liquid-cooled facility designed for AI workloads. The project's total contract value of $8.7 billion, including optional extensions, ensures a decade of stable cash flows. Google's 8% equity stake further validates Terawulf's strategic direction [1].

The Lake Mariner campus, previously used for cryptocurrency mining, is now being repurposed for AI workloads. This dual-use model allows Terawulf to pivot between crypto and AI as market conditions evolve, mitigating sector-specific risks. Additionally, Terawulf's Cayuga site in Lansing, New York, provides access to 400 MW of potential infrastructure capacity, with 138 MW of low-cost, zero-carbon power expected online by late 2026 [1].

Google's involvement extends beyond financial support, providing Terawulf with technical expertise, operational best practices, and a pipeline of enterprise clients. This partnership enhances Terawulf's credit profile, enabling it to tap into capital markets for infrastructure buildout. The company's projected cost structure of $8–$10 million per MW is significantly lower than traditional hyperscalers, improving its ROI [1].

Despite the potential risks associated with high volatility, Terawulf's strategic partnerships, capital-efficient model, and dual-use flexibility position it to outperform in a market where demand for AI compute is outpacing supply. The company's Phase 1 deployment by mid-2026, delivering 40 MW of critical IT load, and Google's growing equity stake are key catalysts for growth [1].

Moreover, Terawulf's latest expansion at its Lake Mariner data center, supported by $3.2 billion in funding from Google, further strengthens its partnership with the tech giant. The new CB-5 data center will add 160 MW of critical IT load, with operations expected to begin in the second half of 2026. This expansion, along with a private offering of convertible senior notes totaling $400 million, underscores Terawulf's commitment to growth and innovation [2].

In conclusion, Terawulf's strategic pivot to AI infrastructure, supported by robust partnerships and a capital-efficient model, positions it as a high-conviction play for investors willing to tolerate high volatility. The company's ability to transform its Bitcoin-era infrastructure into a premier AI hosting platform, backed by Google and FluidStack, makes it a compelling candidate for those seeking exposure to the AI-driven digital economy.

References:
[1] https://www.ainvest.com/news/terawulf-wulf-high-volatility-high-growth-play-ai-infrastructure-bitcoin-mining-synergies-2508/
[2] https://www.fxleaders.com/news/2025/08/18/terawulf-googles-stake-in-wulf-fuels-bitcoin-mining-stock-rally/