TeraWulf Accelerates AI Pivot, Sees $1.8B in Annual Revenue by 2030

TeraWulf Inc., a company previously focused on Bitcoin mining, is rapidly transforming into an AI infrastructure provider. Bernstein analysts led by Gautam Chhugani have reaffirmed their Outperform rating and $36 price target on TeraWulf (NASDAQ: WULF).

The company's latest earnings demonstrate that its AI infrastructure strategy is translating into financial results, with $32 million in high-performance computing revenue generated during Q2, accounting for 71% of total revenue. This marks a significant shift away from its legacy Bitcoin mining business.

Bernstein analysts believe TeraWulf is evolving into the 'power landlord of AI' by monetizing large-scale power infrastructure for hyperscalers and AI companies. The company's contracted backlog indicates it expects to generate more than $1.8 billion in average annual revenue and over $1.5 billion in annual net operating income.

The analysts also highlighted TeraWulf's one-gigawatt Muskie campus in Kentucky as its next major growth driver, with the first 500-megawatt phase expected to come online in Q4 2028 and full buildout targeted by 2030. However, Bernstein cautioned that development costs are increasing, estimating construction costs of $10 million to $12 million per IT megawatt.

TeraWulf's flagship Lake Mariner campus also experienced rising development costs during the quarter, and the company amended its Fluidstack lease, increasing total contracted revenue by roughly $300 million to $7.2 billion over 10 years.