TeraWulf's HPC lease revenue jumps in Q2 as Google warrant charge drives $939.9 million loss

TeraWulf reported $44.8 million of second-quarter revenue as high-performance computing lease revenue rose 52% from the prior quarter to $31.9 million, making up about 71% of the total and extending its lead over the company's traditional Bitcoin mining business. Digital-asset revenue was roughly flat sequentially at about $12.8 million but fell sharply from $47.6 million a year earlier, underscoring the company's shift toward long-term contracted AI and data-center income. The result missed a $46.4 million consensus estimate compiled by Koyfin, and the company reported a $1.94 per-share loss versus an expected $0.23 loss after a $755.7 million non-cash fair-value charge tied to Google warrants pushed GAAP net loss to $939.9 million. Bernstein maintained an outperform rating on the stock and kept its $36 price target, saying the quarter supported its view that TeraWulf is becoming a "power landlord of AI" as contracted HPC revenue scales, while also flagging rising development costs and customer concentration risk. The firm pointed to TeraWulf's amended Fluidstack lease, which increased total contracted revenue by roughly $300 million to $7.2 billion over 10 years, and said the company expects more than $1.8 billion in average annual revenue and over $1.5 billion in annual net operating income based on its contracted backlog.