Terawulf Inc. (NASDAQ: WULF)

Terawulf Inc. is a vertically integrated owner, developer, and operator of large-scale digital infrastructure in the United States, specializing in high-performance computing (HPC) workloads, including artificial intelligence (AI), machine learning, and advanced cloud applications. The company's strategy revolves around controlling infrastructure at a utility scale, pairing compute-optimized facilities with reliable, long-duration power resources. Terawulf's approach involves securing land use through ownership or long-term ground leases, along with interconnection rights, electrical and cooling infrastructure, and, where applicable, on-site generation. This infrastructure-first approach enables the company to deliver resilient, cost-efficient capacity to hyperscale and enterprise customers through long-term hosting arrangements.

Terawulf generates revenue through long-term data center leases, typically ranging from 10 to 25 years, with contractual escalators and renewal options. The company's primary products include HPC hosting services, supported by its infrastructure platforms. Terawulf's customer base consists of hyperscale and enterprise clients, including AI cloud platforms and other high-performance computing users. The company's revenue model is built on long-term contracts with credit-enhanced counterparties, ensuring stable and predictable cash flows.

• Lake Mariner Data Campus: Located in Barker, New York, this flagship HPC campus is situated on the site of a former coal-fired power plant that has been repurposed into a modern digital infrastructure campus. As of December 31, 2025, the campus operated 245 MW of legacy bitcoin mining capacity and had 18 MW of critical IT HPC capacity. The campus is undergoing phased expansion to support additional HPC contracted deployments with gross capacity of approximately 500 MW in the near term, with potential expansion to approximately 750 MW, subject to additional approvals from the NYISO. The campus sources power from the NYISO Zone A grid, which is characterized by low-cost, low-carbon energy. Of the campus's total power needs, 90 MW is allocated under an agreement with the New York Power Authority (NYPA) executed in February 2022, providing high-load factor power under a ten-year term commencing with NYPA's initial power delivery. The campus is designed to support multiple hyperscale and enterprise tenants through modular, phased development and incorporates advanced liquid-cooling systems, redundant electrical architectures, and scalable mechanical and network infrastructure optimized for high-density GPU deployments. Terawulf operates the Lake Mariner Data Campus through its subsidiaries La Lupa Data LLC (La Lupa) and Akela Data LLC (Akela). Collectively, La Lupa and Akela represent 438 MW of contracted critical IT HPC capacity at the Lake Mariner Data Campus, with some deliveries having commenced in 2025 and others extending into 2026. In December 2024, La Lupa entered into long-term data center lease agreements with Core42 (the Core42 Leases), pursuant to which the company committed to deliver 60 MW of critical IT load. The Core42 Leases have an initial ten-year term with two five-year renewal options and include customary provisions governing operating standards, service levels, and expansion rights. Construction commenced in 2024 and continued into 2025; commissioning activities commenced in 2025 with phased deliveries aligned to meet Core42's deployment schedule. In August 2025, Akela entered into three data center lease agreements (the Akela Fluidstack Leases) with Fluidstack USA I Inc. (Fluidstack), a leading AI cloud platform. Under the Akela Fluidstack Leases, the company will provide 378 MW of critical IT load at the Lake Mariner Data Campus. The Akela facilities are being developed in multiple phases, with construction having commenced in 2025 and delivery expected to commence in 2026. The Akela Fluidstack Leases benefit from substantial credit support provided by Google, which supports Fluidstack's payment and performance obligations under the leases and materially enhances the credit quality and bankability of the company's contracted lease revenues. This credit support was a key factor in enabling efficient financing and phased development of the Akela facilities.

• Abernathy HPC Campus: Located in Abernathy, Texas, within the Southwest Power Pool (SPP), this campus reflects the extension of the company's relationship with Fluidstack, also supported by credit enhancement from Google, to an additional site in Texas. The campus is being developed through a joint venture in which the company holds a 50.1% ownership interest. In October 2025, the company entered into an amended and restated limited liability company agreement (the Abernathy Joint Venture Agreement) with Fluidstack CS I Inc. (the Fluidstack Member) to govern the terms of operation of FS CS 1 LLC (the Abernathy Joint Venture), which will develop, lease and operate the Abernathy HPC Campus. The Abernathy HPC Campus is designed for 168 MW critical IT load, representing the full build-out of the site. This capacity is fully pre-leased to Fluidstack USA III under a 25-year data center lease with built-in rent escalators and options for term contraction (the Abernathy Fluidstack Lease and, together with the Akela Fluidstack Leases, the Fluidstack Leases). Construction is proceeding in phases, with completion and delivery currently targeted for the second half of 2026. Similar to Akela, the Abernathy Fluidstack Lease benefits from credit support from Google, which provides financial support for Fluidstack's obligations under the sublease, materially strengthening the risk profile of the company's contracted revenues and facilitating third-party financing.

Terawulf operates in a highly competitive market for digital infrastructure serving HPC and AI workloads. The company competes with a range of participants, including data center real estate investment trusts (REITs), independent data center developers, hyperscalers, infrastructure funds, and, in certain cases, digital asset miners with infrastructure suitable for HPC conversion. Competitive factors include site availability, power availability and economics, execution capability, access to capital, and customer relationships. Terawulf's competitive advantages include long-term control of utility-scale infrastructure, deep in-house power and grid expertise, and a scalable development model supported by long-term, credit-enhanced customer contracts. The company's infrastructure-centric model enables disciplined execution across development and operations, enhances reliability, and supports efficient delivery of large-scale HPC capacity.

Terawulf's customer base includes hyperscale and enterprise clients, such as Core42 and Fluidstack, which are supported by credit enhancement from Google. The company's long-term contracts with these credit-enhanced counterparties ensure stable and predictable cash flows, positioning Terawulf to support the growing demand for AI and high-density compute while delivering durable value to shareholders.