TeraWulf Leases $19 Billion in AI Computing Capacity to Anthropic

TeraWulf, a Bitcoin mining stock, is pivoting into AI by leasing its power infrastructure to Anthropic. The company has signed a 20-year agreement worth approximately $19 billion in contracted revenue.

The lease will generate around $950 million annually, with the first facilities scheduled to begin operating in late 2027. TeraWulf's existing infrastructure is expected to deliver AI capacity faster than developers starting from scratch due to its control over land, grid connections, and substations.

However, this pivot comes with risks, including construction costs, financing expenses, and potential dilution of shareholder value through further stock sales. TeraWulf's market capitalization is around $8.75 billion, valuing the company at almost 9.2 times the Anthropic lease's simple average annual revenue.