TeraWulf (NASDAQ: WULF) posted Q2 revenue of $44.8 million, missing the $46.0 million consensus. The company is deliberately pivoting from bitcoin mining to high-performance computing (HPC) leasing. The headline GAAP net loss of $939.9 million, or $1.94 per share, is almost entirely a non-cash event. A $755.7 million charge from the change in fair value of warrant liabilities drove the loss. Adjusted EBITDA swung to negative $18.3 million, down from positive $14.5 million a year ago, as SG&A and operating costs rise with contracted HPC capacity coming online before full revenue contribution.
Those numbers are not the real story this quarter. Two subsequent events redefine TeraWulf's strategic trajectory. First, the company signed a 20-year lease with Anthropic for about 401 MW of critical IT capacity at the Justified Data Campus in Kentucky. The lease represents roughly $19 billion in contracted revenue over the initial term, potentially reaching $33 billion if Anthropic exercises both five-year extension options. Second, TeraWulf agreed to sell its entire 50.1% interest in the Abernathy Joint Venture for roughly $530 million in cash.
Together, these moves validate a capital-recycling model management has been telegraphing. The Abernathy sale monetizes a mature investment at what the company calls an attractive return (~20% IRR). It frees up $530 million to redeploy into larger-scale, higher-control opportunities. The Anthropic lease shows TeraWulf can attract top-tier AI tenants to its power-secured sites, converting power access into long-duration, credit-backed revenue streams. Initial delivery is targeted for the second half of 2027, with full delivery in early 2028.
Operational progress at Lake Mariner supports the narrative of serial delivery. As of early July, TeraWulf had 102 MW of revenue-generating critical IT capacity online, up from 81 MW at quarter-end, after completing delivery of CB-3. That delivery also unlocked $600 million of Google's credit support for Fluidstack's lease obligations, strengthening the contracted revenue profile. Another 336 MW is under construction across CB-4 and CB-5. CB-4's first data hall is entering commissioning, with phased delivery expected in the second half of 2026, while CB-5 is targeted for early 2027.
The acquisition of the Muskie Data Campus in Eastern Kentucky adds another growth vector. It comes with up to 1 GW of contracted electric service from Kentucky Power Company. Initial service is expected in the fourth quarter of 2028. Combined with the Anthropic lease at Justified and the pending acquisition of the Chesapeake Data Campus (up to 1 GW, subject to closing conditions), TeraWulf now controls a pipeline of roughly 2.9 GW of critical IT capacity across five sites.
This quarter makes one thing clear. TeraWulf is no longer a bitcoin miner transitioning to HPC. It is an infrastructure developer and operator that still runs some mining rigs. HPC lease revenue of $31.9 million now represents 71% of total revenue, up from 0% a year ago. Digital asset revenue fell to $12.8 million from $47.6 million, a deliberate reduction in mining activity as capacity is repurposed for HPC. The revenue mix shift is structural, not cyclical.
The balance sheet supports the buildout. TeraWulf ended the quarter with $3.0 billion in cash and restricted cash. Net debt stood at roughly $2.7 billion, reflecting $5.7 billion in total debt (including $2.5 billion in convertible notes at the parent and $3.2 billion in senior secured notes at WULF Compute) against the cash position. Funding the contracted development pipeline without dilutive equity issuance will be a key metric to watch, particularly with $1.1 billion in short-term convertible notes on the balance sheet.
The reaffirmed target of contracting 250 to 500 MW of incremental critical IT capacity annually provides a valuation framework, but execution risk is real. Delivering 401 MW to Anthropic by early 2028, while simultaneously completing CB-4 and CB-5 at Lake Mariner and advancing the Muskie and Chesapeake sites, will test the company's project management and supply chain capabilities. The $8-10 million per critical IT MW cost guidance for WULF Compute construction is a benchmark to track against actuals.
For investors, the message is straightforward. TeraWulf is executing on its stated playbook: control power, contract capacity, build data centers, and recycle capital. The Anthropic lease and Abernathy sale are the strongest evidence yet that the model works. The next question is whether the pace of delivery can keep up with the pace of contracting.