Terawule transaction anchors $3.7B in contracted revenue

Terawule transaction anchors $3.7B in contracted revenue

TeraWulf Inc. (NASDAQ: WULF) has announced a landmark agreement with Fluidstack, securing $3.7 billion in contracted revenue over the next decade. The deal involves delivering over 200 MW of critical IT load at the company's Lake Mariner data center campus in Western New York [1]. The agreement includes two five-year extension options, which, if exercised, could increase the total contract value to $8.7 billion [1].

Google is backing $1.8 billion of Fluidstack's lease obligations and will receive warrants for approximately 41 million shares in TeraWulf, equating to an 8% equity stake [1]. The deployment schedule targets 40 MW online by the first half of 2026, with the full 200+ MW capacity expected by year-end 2026 [1]. The Lake Mariner facility features dual 345 kV transmission lines, closed-loop water cooling, and ultra-low-latency fiber connectivity, making it purpose-built for AI compute [1].

The transaction represents a significant strategic pivot for TeraWulf, transforming it from a predominantly crypto mining operation to a diversified digital infrastructure provider serving the rapidly growing AI sector. The 85% NOI margins translate to approximately $315 million annually in site-level operating income, significantly improving TeraWulf's financial profile [1].

The Google backstop and the 8% equity stake underscore a vote of confidence in TeraWulf's infrastructure capabilities and suggest potential for deeper strategic alignment. The 30-day exclusivity for an additional 160 MW at the CB-5 site indicates potential for significant follow-on business beyond the initial 200+ MW commitment [1].

References:

[1] https://www.stocktitan.net/news/WULF/tera-wulf-signs-200-mw-10-year-ai-hosting-agreements-with-8kvoi2n4c2fo.html