TeraWulf WULF shares have appreciated 90.1% year to date (YTD), underperforming the Zacks Financial- Miscellaneous Services industry and the Zacks Finance sector’s return of 5.2% and 13.4%, respectively. This vertically integrated owner and operator of next-generation digital infrastructure, purpose-built to support bitcoin mining and high-performance computing (HPC) workloads, reported revenues of $47.6 million, up 38% sequentially and 34% year over year in the second quarter of 2025.

WULF self-mined 485 bitcoin at the Lake Mariner facility in the second quarter of 2025, and bitcoin mining capacity jumped 45.5% year over year to 12.8 EH/s. As of June 30, 2025, TeraWulf owned approximately 70,300 miners, with approximately 65,100 operational at the facility. However, power cost per bitcoin self-mined jumped 98.5% year over year due to halving (in April), rising network difficulty and short-term power price volatility. Adjusted EBITDA was $14.5 million, down 25.6% year over year in the second quarter of 2025 against a negative $4.7 million in the first quarter of 2025.

However, TeraWulf expects power prices in Upstate New York to remain steady with historical levels for the rest of 2025. The company now expects 5 cents per kilowatt hour for the second half of the year and mining operations to contribute positively to EBITDA. However, WULF expects selling, general and administrative expenses between $50 million and $55 million compared with previous guidance of $40-$45 million due to accelerated growth in the company’s HPC business.

So, how should investors play WULF stock now? Let’s analyze.

WULF’s Top Line to Benefit From Growing Clientele

TeraWulf is on track to deliver 72.5 MW of HPC colocation capacity under its data center lease agreements with Core42 Holding for GPU compute workloads. The WULF Den and CB-1 leases with Core42 are expected to start generating revenues in the third quarter of 2025.

WULF inked a deal with Fluidstack, a premier AI cloud platform that builds and operates HPC clusters. TeraWulf will deliver more than 360 MW of critical IT load at its Lake Mariner data center campus in Western New York. The Lake Mariner facility can expand up to 500 MW in the near term and up to 750 MW with targeted transmission upgrades. At the end of the second quarter of 2025, the facility had 245 MW of energized capacity supporting bitcoin mining infrastructure.

The deal represents roughly $6.7 billion in contracted revenues with total contract revenues expected to hit $16 billion. As per the deal, Alphabet ’s GOOGL Google is backing Fluidstack’s lease obligations, which include early termination protections for the first 6 years. Alphabet is also providing $3.2 billion of credit support, and its total pro forma equity ownership in TeraWulf increases to approximately 14%.

WULF also secured a long-term ground lease for approximately 183 acres at the Cayuga site in Lansing, NY. The lease provides TeraWulf with exclusive rights to develop up to 400 MW of digital infrastructure capacity, with 138 MW of low-cost, predominantly zero-carbon power expected to be ready for service in 2026.