WULF Expands HPC Footprint With Fluidstack Pact: What's Ahead?

Core Insights - TeraWulf's prospects are bolstered by a joint venture with Fluidstack, focusing on high-performance computing (HPC) and expected to deliver significant IT load capacity by 2026 [1][9] - The 25-year joint venture is projected to generate approximately $9.5 billion in contracted revenues, with TeraWulf's total contracted HPC platform exceeding 510 MW [2] - Preliminary Q3 2025 revenue estimates indicate a strong year-over-year growth of around 84%, with expected revenues between $48 million and $52 million [3] Joint Venture and Revenue Potential - The joint venture with Fluidstack will develop 168 MW of HPC capacity at the Abernathy, TX campus, enhancing TeraWulf's HPC footprint [1][9] - TeraWulf's existing deal with Fluidstack involves delivering over 360 MW at the Lake Mariner data center, with potential expansion to 750 MW, representing about $6.7 billion in contracted revenues [2] Competitive Landscape - TeraWulf faces significant competition from IREN Limited and Applied Digital in the bitcoin mining and HPC sectors [4] - IREN Limited has expanded its AI cloud capacity and anticipates achieving $500 million in annualized run-rate revenue by Q1 2026 [5] - Applied Digital is capitalizing on the demand for data center infrastructure, with a focus on energy efficiency and a hosting capacity of approximately 286 MW [6] Stock Performance and Valuation - TeraWulf's stock has increased by 39.5% in the past month, outperforming the broader Zacks Finance sector [7] - The stock is trading at a high valuation, with a trailing price/book ratio of 39.4X compared to the industry average of 4.28X [12] - The Zacks Consensus Estimate for 2025 earnings indicates a projected loss of $0.36 per share, reflecting a wider loss than previously anticipated [13]