W.033TeraWulf’s lease revenue nearly doubled in a quarter, to $63M. It spent $852M building more in the same three months
TeraWulf’s high-performance computing lease revenue rose 97% from the second quarter to $63.0M, 83% of its sales; bitcoin mining was 17%. Capital spending in the quarter was about $852M, 11 times revenue. 102 MW of critical IT load was earning rent at Lake Mariner at September 30, about an eighth of the roughly 839 MW it has under lease. Management told analysts it expects about $700M of annualized leasing revenue on exiting the first quarter of 2027.
The miner is now a landlord
Leases are more than four-fifths of revenue. TeraWulf’s revenue was $76.2 million in the third quarter. Lease revenue from its high-performance computing tenants was $63.0M, up from $31.9M in the second quarter and $7.2M a year earlier; Fluidstack’s CB-3 building at Lake Mariner, New York, was fully delivered in early July, lifting revenue-generating capacity to 102 MW from 81 MW at June 30. Bitcoin mining brought in $13.2M, 69% less than a year earlier. Adjusted EBITDA was a loss of $12.8 million, against a profit of $18.1 million a year earlier. Net income attributable to the company was $709.9 million because of a $728.4 million gain on the fair value of warrant and derivative liabilities; diluted earnings per share were a loss of 3 cents.
The build is running at about $850 million a quarter. Purchases of and deposits on property, plant and equipment were $2,231 million in the first nine months, against $445 million a year earlier; by our subtraction about $852 million of it fell in the third quarter, when operations used about $25 million of cash. Cash, including restricted cash, fell to $2.36B from $3.03B at June 30. Debt at carrying value was about $5.23B: $3,113 million of long-term debt, mainly the 7.75% notes that funded Lake Mariner, and $2,119 million of convertible notes. The company sold $1,200 million of stock, net, in the nine months. On the call, according to an AI-generated transcript, chief financial officer Patrick Fleury put the remaining spend on the Lake Mariner build at about $1 billion, about two-thirds of it committed, and said the contracted build and its Kentucky equity can be funded without new stock.
Lease revenue is 83% of sales
TeraWulf revenue by quarter, $ millions: HPC lease revenue (the latest quarter highlighted) and digital asset (bitcoin mining) revenue, with lease revenue’s share of the total over each bar. Q4 2025 segment figures are rounded to $0.1M in the full-year release.
Data
| Quarter | HPC lease | Digital asset | Total | HPC share |
|---|---|---|---|---|
| Q3 2025 | 7.2 | 43.4 | 50.6 | 14.2% |
| Q4 2025 | 9.7 | 26.1 | 35.8 | 27.1% |
| Q1 2026 | 21.0 | 13.0 | 34.0 | 61.8% |
| Q2 2026 | 31.9 | 12.8 | 44.8 | 71.3% |
| Q3 2026 | 63.0 | 13.2 | 76.2 | 82.6% |
Each quarter of 2026 cost more than ten times its revenue
TeraWulf purchases of and deposits on property, plant and equipment by quarter of 2026, $ millions (our subtraction of cumulative cash flow figures), against total revenue in the same quarter. Excludes $234.7M of asset acquisitions in the nine months.
From 102 MW to about 839
Most of the leased capacity has yet to be delivered. At September 30, 102 MW was operating and earning rent at Lake Mariner, which by the company’s figures covers Core42’s 60 MW and Fluidstack’s CB-3; 336 MW was under construction in CB-4 and CB-5. CB-4, up to 168 MW, starts phased rent in the fourth quarter, and CB-5 is to be delivered in phases from early 2027. In Kentucky, the roughly 401 MW Justified campus leased to Anthropic for about $19 billion over 20 years is due to be ready in phases from late 2027 through the second quarter of 2028; in August TeraWulf had said full delivery in early 2028. Together that is about 839 MW, of which 12% was earning rent.
The run-rate target is close to three times the third quarter. On the call, according to two transcripts, chief executive Paul Prager said TeraWulf expects about $700 million of annualized leasing revenue as it exits the first quarter of 2027, with about half of contracted capacity operating; four times the third quarter’s lease revenue is about $252 million. Prager said TeraWulf would not sign a lease that forces it to issue equity at a valuation it does not believe in, and that it is in talks with prospective tenants he did not name. TeraWulf also doubled the power contracted for its Muskie site in Kentucky to 1,000 MW, subject to approval by the state’s Public Service Commission, with the second 500 MW expected in 2029. Its shares rose 8.73% to $10.96 before the open, Seeking Alpha reported.
About an eighth of the leased capacity is earning rent
TeraWulf critical IT capacity under lease, MW, by building, with tenant and expected timing under each name: operating at September 30 (solid) and under construction or not yet started (outlined). CB-4 is “up to” 168 MW; CB-5 and Justified are approximate. Fluidstack’s three Lake Mariner leases total 378 MW in the 2025 10-K.
The target is 2.8 times the current run-rate
TeraWulf leasing revenue, annualized, $ millions: third-quarter HPC lease revenue times four (our calculation); management’s target on exiting the first quarter of 2027, from the call; and the Anthropic lease’s $19B divided evenly over its 20-year initial term (our calculation; actual rent will ramp and may escalate).
What this changes on 06.ai
- Neocloud capex funding pack: TeraWulf is now a quarterly series for a converted miner’s ratio of build spending to lease revenue (about 11× in the third quarter) and for leased megawatts earning rent against those signed (12%).
- Watch: the ~$700M exit run-rate for the first quarter of 2027 is a dated, checkable target; the Q1 2027 results, due around May, will show it.
Sources and method
| Item | Figure | Source |
|---|---|---|
| Q3 2026 | Revenue $76.2M: HPC lease $62.986M, digital asset $13.244M (Q3 2025 $7.203M and $43.375M); net income attributable $709.9M, including a $728.4M gain on warrant and derivative liabilities; adjusted EBITDA −$12.8M; 102 MW revenue-generating critical IT at Lake Mariner; 336 MW under construction at CB-4 and CB-5; Justified about 401 MW for Anthropic, about $19B, phased ready-for-service late 2027 to Q2 2028; Muskie contracted power 500 → 1,000 MW subject to PSC approval; nine-month PP&E purchases and deposits $2230.8M ($445.2M); operating cash flow −$178.9M; debt and cash balances; $1199.8M of stock issued, net | TeraWulf Q3 release, Nov 6 |
| Q2 2026 | HPC $31.932M, digital asset $12.835M; six-month PP&E purchases and deposits $1378.5M; operating cash flow −$154.3M; Anthropic lease up to about $33B with extensions | TeraWulf Q2 release (8-K), Aug 5 |
| Q1 2026 | HPC $21.022M, digital asset $12.99M; PP&E purchases and deposits $523M; Core42’s 60 MW operational | TeraWulf Q1 release (8-K), May 8 |
| Q4 2025 | HPC $9.7M, digital asset $26.1M | TeraWulf Q4 2025 release, Feb 26 |
| Leases | Core42 60 MW at Lake Mariner; Fluidstack leases of 378 MW at CB-3, CB-4 and CB-5 | TeraWulf 2025 10-K |
| Call | About $700M of annualized leasing revenue on exiting Q1 2027; CB-4 up to 168 MW; about $1B left to spend at Lake Mariner; no lease that forces an equity raise | Q3 call transcript (AI-generated), gloom.sh |
| Call | Second summary of the call: run-rate target, revolver to about $550M with accordion | Q3 call summary, stocknow.ai |
| Shares | Up 8.73% to $10.96 before the open, 8:11 ET | Seeking Alpha, Nov 6 |
Revenue: HPC 62.986 ÷ 31.932 − 1 = 97.3%; share 62.986 ÷ 76.230 = 82.6%; mining 13.244 ÷ 43.375 − 1 = -69.5%. Q4 2025 total is the sum of its two segments.
Capital spending: Q2 = 1378.5 − 523 = 855.5; Q3 = 2230.8 − 1378.5 = 852.3; ÷ revenue 76.2 = 11.2×. Q3 operating cash flow = -178.9 − (-154.3) = -24.6. Debt: 3032.1 + 81.3 + 1627.3 + 491.5 = 5232.2, carrying values. Capacity: 102 operating + 168 + 168 under construction (the release’s 336 MW) + 401 = 839 MW; 102 + 336 = 438 matches Core42’s 60 MW plus Fluidstack’s 378 MW. Share earning rent 102 ÷ 839 = 12.2%. Run-rates: 62.986 × 4 = 251.9; 19000 ÷ 20 = 950; 700 ÷ 251.9 = 2.78. Call remarks come from AI-generated transcripts and are attributed as such.
Wire reports are written within hours of the news, on a six-hour schedule. Each lists its sources and shows the arithmetic behind its figures. Not investment advice.