TeraWulf's Q3 2026 HPC Revenue Rises 774% to $63 Million

Mining Slips, Leasing Dominates

TeraWulf Inc. (Nasdaq: WULF) released results for the third quarter of 2026 on Friday, and the filing describes a revenue base that has flipped: high-performance computing leasing, not bitcoin mining, now produces most of the company's income. HPC lease revenue came to $63.0 million for the quarter, up 774% from $7.2 million in the year-earlier period. Bitcoin mining revenue moved the other way, falling roughly 69% to $13.2 million from $43.4 million. Total revenue rose 51% year over year to $76.2 million, and HPC leasing accounted for 83% of that total, up from 14% in the prior-year quarter.

HPC, as TeraWulf uses the term, is data center capacity leased to artificial intelligence customers under long-term contracts, a business distinct from the mining farms the company originally built. The two lines tell the story of the quarter on their own: one grew nearly eightfold, the other gave up more than two-thirds of its revenue. For a company whose core revenue line a year ago was bitcoin mining, an 83% leasing share marks the point at which the AI data center transition stopped being a plan and became the income statement. The company's own framing of the release centers on execution across its site pipeline, and the figures support that reading.

On the bottom line, TeraWulf reported net income of approximately $710 million, but the disclosure attributes most of that figure to non-cash fair value changes on warrants and other liabilities, not to operations. The operating loss came to $88.23 million. The company ended the quarter with about $2.4 billion in cash, cash equivalents and restricted cash, a liquidity base kept to fund construction of the data center capacity it has already contracted to deliver.

Anthropic Lease Backed by Google

The quarter's most consequential disclosure concerns the lease agreement with the artificial intelligence company Anthropic, valued at roughly $19 billion, and the credit backstop Google has put behind it. TeraWulf leases the Justified data center site to Anthropic; under the backstop, if Anthropic were to miss rent payments, Google would cover them or take over the lease. The company states that this credit support should let it raise project finance, borrowing repaid from the project's own revenue, on favorable terms, a point it reiterated alongside the results. The structure matters because TeraWulf's construction spending runs far ahead of its operating cash flow, and contracted lease revenue from a credit-supported tenant is the collateral lenders price.

Chairman and chief executive Paul Prager described the quarter as demonstrating steady execution across the business: contracted capacity delivering revenue at Lake Mariner, the customer, credit and construction framework in place for large-scale deployment at Justified, and a contractual path secured toward one gigawatt of power at Muskie.

The site detail sits in the report's operating sections. Lake Mariner had 102 megawatts of revenue-generating critical IT capacity online at the end of September, with another 336 megawatts under construction; the CB-4 building is scheduled to begin phased handovers and rent accrual during the current quarter. At Justified, TeraWulf has signed a 20-year lease with Anthropic covering roughly 401 megawatts of critical IT capacity, with phased deliveries starting in late 2027 and completing through the second quarter of 2028. At Muskie, revised power supply and transmission agreements with Kentucky Power raise contracted capacity from 500 megawatts to 1,000 megawatts, subject to approval by the Kentucky Public Service Commission, with the second 500-megawatt phase now expected to come online earlier, in 2029.

Where the Operating Loss Fits

The quarter's economics live in the operating loss, not the headline net income: TeraWulf is building 336 megawatts at Lake Mariner and 401 megawatts at Justified ahead of the revenue those sites generate, and non-cash gains on warrants and debt narrow the reported result without changing the cash picture. The Google backstop changes the risk profile of the $19 billion Anthropic contract by giving lenders recourse beyond TeraWulf's own balance sheet, which the company links to cheaper project finance. With CB-4 handovers and rent starting this quarter, the market's read on the company's market cap now turns on construction milestones rather than on mining economics.