Simply put
- Terrawolf’s stock price dropped in after-hours trading on Monday, despite a rise during the day.
- The CEO commented on the strengthening partnership with Fluidstack and Google.
- The earnings aligned with the company’s earlier report from late October.
TeraWulf, which operates as both a Bitcoin miner and data center, announced Monday that its revenue reached $50.6 million, marking an 87% increase year-over-year.
Based in Easton, Maryland, TeraWulf credited this success to the rise in Bitcoin prices, an increase in mining capability, and the beginning of high-performance computing lease revenues.
CEO Paul Prager pointed out in a statement that the third and fourth quarters have been particularly busy for the company, emphasizing the partnerships with Fluidstack and Google. He mentioned that these agreements show the confidence that their esteemed technology partners have in TeraWulf’s potential to succeed.
He also stated, “We are completely focused on execution as we aim for our next growth phase through 2027 and beyond.”
Traded on the Nasdaq, TeraWulf’s stock, which is represented by the ticker symbol WULF, went down by 2.5% in after-hours trading on Monday. Before that, it closed at $14.30, which is a 3.8% increase for the day. Over the last month, the stock has risen by 7.6%.
According to preliminary guidance from TeraWulf in late October, the company anticipates reporting third-quarter revenues between $48 million and $52 million, suggesting growth of about 84% compared to the $27 million from the same quarter last year.
TeraWulf became public in December 2021 through a merger with IKONICS, at that time focusing on Bitcoin mining. By late 2024, it plans to integrate high-performance AI computing services.
In August, the company announced a significant 10-year AI hosting contract with Fluidstack, worth $3.7 billion in expected revenue, which could escalate to $8.7 billion if the lease is extended.
As part of this agreement, Google agreed to cover $1.8 billion of the AI company’s lease obligations, in exchange for 41 million shares of TeraWulf stock, which provides them with an ownership stake of roughly 8%.
Prager remarked at the time, “This reflects the growth strategy we outlined: leveraging our advantageous infrastructure into contracted megawatts with investment-grade clients and doing so on a strategic scale.”
This deal positions Google as the second largest stakeholder in TeraWulf, following Mr. Prager, who holds 10.7%. Other significant investors include Stamtisch Investments, Bayshore Capital, and Revolve Capital. Vanguard Group and BlackRock also have notable stakes, though primarily as passive index fund managers in various public companies across the U.S.
