Bitcoin Miners Diversifying Into AI with Long-Term Contracts
TeraWulf (NASDAQ: WULF) is leveraging its existing infrastructure to pivot into the artificial intelligence sector by leasing data center capacity. The company recently signed a 20-year agreement with Anthropic, expected to deliver approximately $19 billion in contracted revenue over two decades starting from late 2027. TeraWulf's AI and high-performance computing (HPC) segment already contributed significantly to its first-quarter revenue—$21 million compared to $13 million from Bitcoin mining. However, the company faces substantial construction costs before it can begin collecting rent under this new contract. As of Q1 2026, TeraWulf had $5.3 billion in debt and has increased its share count through stock offerings. Despite these challenges, investors are valuing TeraWulf at nearly nine times the average annual revenue from the Anthropic lease before construction costs are accounted for. The company's existing AI infrastructure ownership and early leasing success provide some support to its investment case.
Tickers: $WULF
Topics: AI Bitcoin Mining Infrastructure Leasing