TeraWulf Shares Rise 3.4% on Google-Backed AI Expansion and New York Lease Amid 275th Trading Volume Rank

On August 28, 2025, TeraWulf (WULF) rose 3.40%, with a trading volume of $0.39 billion, ranking 275th in market activity. The stock’s performance was driven by strategic developments, including a 200 MW AI infrastructure agreement with Fluidstack, supported by Google’s $1.8 billion financial backing. Analyst Mike Grondahl raised the price target to $12, citing the partnership’s potential to generate up to $8.7 billion in revenue. A new 80-year ground lease in New York further positions TeraWulf for expansion, enabling 400 MW of digital infrastructure.

Despite a Q2 2025 net loss of $18.37 million, the company reported $47.64 million in revenue, highlighting its focus on high-margin operations. TeraWulf’s debt burden remains significant, with over $500 million in long-term liabilities, but strategic collaborations and Google’s financial support are seen as mitigants. The company’s 43.8% gross margin underscores its cost-optimized model, though negative return ratios (e.g., -48.52% ROE) reflect ongoing challenges in capital efficiency.

Google’s 14% stake and $1.4 billion allocation for new data center projects provide critical stability, aligning with TeraWulf’s AI and digital infrastructure ambitions. Fluidstack’s colocation agreements are projected to enhance revenue streams, while the New York lease ensures long-term scalability. Analysts remain cautiously optimistic, emphasizing EBITDA growth potential and 2027 expansion targets despite current earnings pressures.

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