TeraWulf's Google Put Marks a Breakthrough

crypthub

about 15 hours ago

Strategic Pivot

TeraWulf is transitioning from crypto mining to AI/HPC data‑center infrastructure. It has secured major deals with Core42 and Google/Fluidstack. The shift aims to convert low‑utilization mining assets into high‑value megawatt capacity for AI workloads.

Key Partnerships

The Core42 agreement could deliver about $1 billion in revenue over ten years, targeting $1.5 million per megawatt‑hour. The Google/Fluidstack partnership offers $6.7 billion in contracted value, with optional extensions adding $9.3 billion, for a total potential of $15.7 billion. Google backs $3.2 billion of lease obligations and acquires a 14% equity stake.

Financial Outlook

TeraWulf plans to build roughly 360 MW at its Lake Mariner site, delivering 40 MW by H1 2026 and the remainder by H2 2026, funded by $3 billion in debt and Google support. Analysts forecast near‑100% revenue CAGR, with a forward EV/revenue multiple as low as 7.3× FY27, indicating a cheap valuation.

Risks & Recommendation

Risks include ongoing share dilution, reliance on AI demand, and potential spend cuts in a recession. Nevertheless, the partnership structure and sizable revenue upside support a Buy rating.