TeraWulf Enters $3.7 Billion HPC Agreement with Fluidstack
TeraWulf has signed a colocation agreement with Fluidstack valued at a minimum of $3.7 billion for high-performance computing services. Key details include:
- Provision of at least 200 MW of IT load at the Lake Mariner data center over 10 years.
- Two optional extensions could increase total revenue to $8.7 billion over 20 years.
- Google will backstop $1.8 billion of Fluidstack's lease obligations in return for purchase warrants of about 41 million TeraWulf shares, equating to an 8% equity stake.
Following the announcement on August 14, TeraWulf stock (WULF) opened at $7.20, rising to $8.06 before settling around $7.54. The stock's performance may indicate recovery after reporting an $18.4 million net loss in Q2 2024, totaling a $79.8 million deficit for the first half of the year. Despite losses, revenues have increased, and the company holds $90 million in cash and Bitcoin reserves, alongside $500 million in convertible notes due in 2030.
Over the past year, TeraWulf's stock price has risen by over 108%, driven by its AI and HPC operations.
A five-day trading view for WULF. Source: MarketWatch