Bitcoin Miners' Pivot to AI: TeraWulf Signs $19 Billion Lease
Bitcoin miners are increasingly turning to artificial intelligence (AI) as a way to diversify their revenue streams and reduce dependence on volatile cryptocurrency prices. TeraWulf, a Bitcoin mining company listed on the NASDAQ under the ticker WULF, has signed a 20-year agreement with AI firm Anthropic to lease roughly 401 megawatts of computing capacity.
The deal is expected to generate approximately $19 billion in contracted revenue over its initial term, with the first facilities scheduled to begin operating in late 2027. TeraWulf's market capitalization was around $8.75 billion as of July 31, and investors are already valuing the company at almost 9.2 times the Anthropic lease's simple average annual revenue.
The shift towards AI presents an opportunity for Bitcoin miners to monetize their existing infrastructure, including land, grid connections, and substations. However, this requires significant investment in construction and financing, which may dilute existing shareholders if TeraWulf issues more stock to fund its expansion.