TeraWulf Q3 Revenue Soars 87% on Bitcoin Mining & AI Deals

TeraWulf’s third-quarter revenue of $50.6 million not only surpassed the company’s preliminary guidance range of $48 million to $52 million issued in late October but also marked an 87% increase compared to the $27 million reported in the same period last year. The Easton, Maryland-based firm attributed this substantial growth to three key factors: the rising price of Bitcoin, which has historically buoyed miner revenues; expanded mining capacity that increased operational output; and the initiation of high-performance computing lease revenue, a new revenue stream that diversifies its business model beyond cryptocurrency.

CEO Paul Prager described the period from the third quarter into the fourth as “remarkably busy,” underscoring the company’s execution amid a shifting market landscape. The results reflect TeraWulf’s successful scaling efforts since going public via a merger with IKONICS in December 2021, when it operated primarily as a Bitcoin mining enterprise. By late 2024, the company had begun repositioning itself to build “high-performance AI compute infrastructure,” a strategic pivot that is now bearing fruit in its financials.

Central to TeraWulf’s transformation is its expanding partnership with Fluidstack and Google, which Prager highlighted as evidence of “the strength of our platform and the trust that world-class technology partners place in our ability to execute.” In August, TeraWulf announced a 10-year AI hosting deal with Fluidstack that represents $3.7 billion in contract revenues—a figure that could more than double to $8.7 billion through potential lease extensions. This agreement not only provides long-term revenue visibility but also aligns TeraWulf with the burgeoning demand for AI computational resources.

As part of the Fluidstack arrangement, Google committed to backstop $1.8 billion worth of the AI firm’s lease obligations, a move that significantly de-risks the partnership for TeraWulf. In return, Google received 41 million shares of TeraWulf common stock, equating to an approximately 8% pro forma equity ownership stake. This investment makes Google the company’s second-largest shareholder, behind only Prager, who controls 10.7% of shares. Prager characterized the deal as “exactly the evolution we outlined: converting advantaged infrastructure positions into contracted megawatts with investment-grade counterparties and doing so at strategic scale.”

Despite the strong earnings report and transformative partnerships, TeraWulf’s stock, traded on the Nasdaq under the ticker WULF, fell 2.5% in after-hours trading Monday after closing at $14.30, a 3.8% gain for the day. Over the past month, however, the share price has climbed 7.6%, reflecting broader investor optimism about the company’s strategic direction. The after-hours dip may indicate profit-taking or heightened scrutiny as TeraWulf transitions from a pure-play Bitcoin miner to a diversified infrastructure provider.

TeraWulf’s shareholder base includes a mix of active and passive institutional investors. Beyond Prager and Google, key stakeholders include Stammtisch Investments, Bayshore Capital, and Revolve Capital. Passive giants Vanguard Group and BlackRock also hold significant positions, though as index fund managers, their investments are part of broad market exposure rather than active bets on TeraWulf’s strategy. This diverse institutional backing underscores the company’s growing profile within both cryptocurrency and traditional finance circles.

Looking ahead, Prager emphasized that TeraWulf is “squarely focused on execution while advancing the next phase of growth for 2027 and beyond.” The company’s roadmap includes leveraging its existing infrastructure to support both Bitcoin mining and high-performance computing applications, a dual-pronged approach that mitigates reliance on cryptocurrency market cycles. The Fluidstack-Google partnership serves as a template for future deals, combining contracted revenue with investment-grade counterparties to ensure stability and scalability.

As TeraWulf continues to execute on its strategic vision, its ability to balance near-term Bitcoin-driven revenues with long-term AI infrastructure contracts will be critical. The Q3 results demonstrate that this transition is already contributing meaningfully to the top line, positioning TeraWulf to capitalize on two of the most dynamic sectors in technology today. With Google’s stake and the potential for up to $8.7 billion in Fluidstack-related revenues, the company has laid a foundation for sustained growth well into the next decade.