TeraWulf Reports Second Quarter 2026 Results

102 MW of revenue-generating critical IT capacity online at Lake Mariner, with an additional 336 MW under construction and delivery expected within cost and schedule guidance

Expands power-backed platform in Kentucky through ~$19 billion Anthropic lease at Justified and acquisition of the gigawatt-scale Muskie Data Campus

Agrees to monetize Abernathy Joint Venture interest for ~$530 million and reaffirms target of contracting 250–500 MW of incremental critical IT capacity annually

EASTON, Md., Aug. 05, 2026 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a vertically integrated owner, developer and operator of large-scale digital infrastructure, today announced its financial results for the second quarter ended June 30, 2026 and provided an update on its operations, development activities and strategic execution.

Second Quarter 2026 Financial Highlights

• Generated second-quarter revenue of $44.8 million, including $31.9 million of HPC lease revenue, representing approximately 71% of total revenue.
• Ended the quarter with approximately $3.0 billion of cash and restricted cash, maintaining substantial liquidity to fund contracted development and future growth.
  
  

Q2 2026 Operational and Development Highlights

• Operated 81 MW of revenue-generating critical IT capacity at Lake Mariner as of June 30, 2026 and completed delivery of CB-3 in early July, increasing revenue-generating capacity to 102 MW and satisfying the applicable conditions for $600 million of Google’s credit support for Fluidstack’s lease obligations to become effective.
• Continued construction of an additional 336 MW across CB-4 and CB-5. The first CB-4 data hall has entered commissioning, with phased delivery and rent commencement expected during the second half of 2026, while CB-5 remains targeted to begin phased delivery in early 2027. WULF Compute continues to progress within the Company’s previously disclosed cost guidance of $8-10 million per critical IT MW.
• Acquired the Muskie Data Campus in Eastern Kentucky and entered into electric service and related infrastructure agreements with Kentucky Power Company providing for up to 1 GW of contracted electric service.
  
  

Subsequent Events

• Entered into a 20-year data center lease with Anthropic for approximately 401 MW of critical IT capacity at the Justified Data Campus. The lease represents approximately $19 billion of contracted revenue over the initial term and up to approximately $33 billion if Anthropic exercises both five-year extension options.
• Entered into an agreement to sell the Company’s entire 50.1% interest in the Abernathy Joint Venture for aggregate cash consideration of approximately $530 million.
• Received FERC authorization for the proposed acquisition of the Morgantown generating station, clearing a significant regulatory condition toward closing and development of the up to 1 GW Chesapeake Data Campus.
  
  

Management Commentary

Paul Prager, Chairman and Chief Executive Officer of TeraWulf, commented:

“The second quarter demonstrates that TeraWulf is moving from platform formation to scaled execution. At Lake Mariner, we delivered additional contracted capacity and converted it into recurring lease revenue. In Kentucky, we established the next phase of growth through the Anthropic lease at Justified and the acquisition of the gigawatt-scale Muskie Data Campus.

These are not isolated developments. They reflect a repeatable model built around controlling power-advantaged infrastructure, securing long-duration customer contracts and delivering capacity in phases. As access to power becomes the defining constraint on AI infrastructure development, we believe our ability to combine energy expertise, infrastructure control and execution at scale will become increasingly valuable.

Our agreement to monetize Abernathy reflects the same discipline. We are prepared to realize value where appropriate and redeploy capital toward larger-scale opportunities where we have greater control over the infrastructure, customer relationship and long-term economics. Our objective is not simply to accumulate megawatts—it is to build a durable, capital-efficient platform that compounds value for shareholders."

Patrick Fleury, Chief Financial Officer of TeraWulf, added:

“The second quarter marked another meaningful step in the transformation of our financial profile, with HPC leasing representing approximately 71% of total revenue.

The delivery of CB-3 also unlocked $600 million of Google’s credit support for Fluidstack’s lease obligations. This is an important credit milestone that further strengthens the contracted revenue profile of the Lake Mariner buildout.

With substantial liquidity and access to project-level financing, we have the flexibility to complete our contracted developments and fund the next phase of growth. We remain focused on matching capital deployment to contracted demand and selectively recycling capital when doing so improves control, scale and long-term shareholder returns.”

Infrastructure Platform Expansion

TeraWulf continues to expand its national platform beyond its flagship Lake Mariner Data Campus, focusing on power-advantaged sites capable of supporting large-scale, phased HPC development.

Justified Data Campus - Hawesville, Kentucky

Justified is a large-scale HPC campus with access to up to approximately 480 MW of gross power capacity, an energized on-site substation, existing high-voltage transmission infrastructure and more than 250 buildable acres. Subsequent to quarter-end, TeraWulf entered into a 20-year lease with Anthropic for approximately 401 MW of critical IT capacity, with initial delivery expected in the second half of 2027 and full delivery expected in early 2028.

Muskie Data Campus - Grayson, Kentucky

Acquired in May 2026, Muskie comprises approximately 308 acres in Eastern Kentucky. Electric service and related infrastructure agreements with Kentucky Power Company provide for up to 1 GW of contracted electric service, with initial service expected in the fourth quarter of 2028 and phased development thereafter.

Chesapeake Data Campus - Morgantown, Maryland

Chesapeake is an existing grid-connected generation site with approximately 210 MW of operational capacity, substantial electrical infrastructure and significant long-term expansion potential. On July 29, 2026, FERC authorized the pending acquisition of the Morgantown generating station. Subject to the remaining closing conditions and required approvals, the site could support an integrated generation, energy-storage and data center campus capable of scaling to up to 1 GW, with initial data center operations currently contemplated for 2030.

New York Platform - Lake Mariner and Lake Hawkeye

In New York, TeraWulf continues to expand its flagship Lake Mariner Data Campus while advancing Lake Hawkeye as a longer-term redevelopment opportunity. In addition to the 102 MW of revenue-generating critical IT capacity and 336 MW currently under construction at Lake Mariner, the Company is pursuing 250 MW of incremental power capacity, subject to applicable interconnection approval. Lake Hawkeye encompasses approximately 183 leased acres at a former industrial site with existing electrical infrastructure and, subject to permitting and site development, has the potential to support approximately 400 MW of gross capacity, or approximately 320 MW of critical IT load, with operations not currently contemplated until approximately 2029.

Strategic Positioning

TeraWulf’s development model is focused on controlling power-advantaged infrastructure, securing long-duration, credit-supported customer contracts, aligning capital deployment with contracted demand and financing and delivering capacity in sequential phases. The Muskie acquisition, Anthropic lease and agreement to monetize the Company’s interest in the Abernathy Joint Venture demonstrate the repeatability of this model across site acquisition, customer contracting, project execution and capital recycling.

Against this backdrop, TeraWulf reaffirms its target of contracting 250 MW to 500 MW of incremental critical IT capacity annually. The Company intends to pursue that growth selectively, prioritizing opportunities with secured power, clear customer demand, scalable infrastructure and attractive risk-adjusted returns.

Investor Conference Call and Webcast

The Company will host its earnings conference call and webcast for the second quarter ended June 30, 2026, today, August 5, 2026, at 8:00 a.m. Eastern Time. The call will be available for replay in the “News & Events” section of the Company’s website at https://investors.terawulf.com/events-and-presentations/.

About TeraWulf

TeraWulf develops, owns and operates large-scale, power-backed digital infrastructure in the United States, purpose-built for high-performance computing and artificial intelligence workloads. The Company combines long-term control of land, power and interconnection infrastructure with deep in-house expertise in energy markets, infrastructure development and data center operations. TeraWulf operates the Lake Mariner Data Campus in New York and is developing and pursuing additional large-scale campuses in Kentucky, New York and Maryland. The Company also operates existing bitcoin-mining infrastructure at Lake Mariner, portions of which are being repurposed to support contracted HPC development.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “seek,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “strategy,” “opportunity,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) TeraWulf’s ability to attract additional customers to lease its HPC data centers; (2) TeraWulf’s ability to complete its data center campuses and future strategic growth initiatives in a timely manner or within anticipated cost estimates; (3) operational risks associated with its data centers and TeraWulf’s ability to perform under its existing data center lease agreements; (4) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to expansion or existing operations; (6) adverse geopolitical or economic conditions, including a high inflationary environment, the implementation of new tariffs and more restrictive trade regulations; (7) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (8) the availability and cost of power as well as electrical infrastructure equipment necessary to maintain and grow the business and operations of TeraWulf; and (9) other risks and uncertainties detailed from time to time in TeraWulf’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

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CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2026 AND DECEMBER 31, 2025
(In thousands, except number of shares and par value; unaudited)

 June 30, 2026 December 31, 2025    ASSETS   CURRENT ASSETS:   Cash and cash equivalents$2,619,191  $3,266,389 Restricted cash 142,938   189,933 Accounts receivable 13,202   1,212 Digital assets 133   270 Prepaid expenses 18,314   6,272 Other current assets 12,726   14,197 Total current assets 2,806,504   3,478,273 Property, plant and equipment, net 3,600,191   1,507,699 Equity in net assets of investee 424,062   446,008 Goodwill 55,457   55,457 Operating lease right-of-use asset 101,754   103,975 Finance lease right-of-use asset 117,814   119,338 Restricted cash 266,479   266,453 Deferred charges 572,599   572,888 Restricted trust investments 20,607   — Other assets 82,928   8,091 TOTAL ASSETS$8,048,395  $6,558,182     LIABILITIES AND EQUITY   CURRENT LIABILITIES:   Accounts payable$197,812  $65,139 Accrued construction liabilities 287,461   102,582 Accrued interest 57,292   52,775 Other current liabilities 159,472   74,170 Other amounts due to related parties 664   200 Current portion of deferred rent liability 49,682   58,184 Current portion of operating lease liability 2,102   2,015 Current portion of finance lease liability 2   2 Warrant liabilities 1,816,690   844,698 Current portion of long-term debt 90,718   46,316 Short-term convertible notes 1,101,976   489,767 Total current liabilities 3,763,871   1,735,848 Deferred rent liability, net of current portion 944   23,285 Operating lease liability, net of current portion 21,220   22,309 Finance lease liability, net of current portion 288   289 Long-term debt 3,019,335   3,052,240 Convertible notes 1,001,083   1,582,788 Deferred tax liabilities 132   76 Other liabilities 93,994   902 TOTAL LIABILITIES 7,900,867   6,417,737     Commitments and Contingencies (See Note 12)       EQUITY:   Preferred stock, $0.001 par value, 100,000,000 authorized at June 30, 2026 and December 31, 2025; none issued and outstanding at June 30, 2026 and December 31, 2025; aggregate liquidation preference of $0 at June 30, 2026 and December 31, 2025 —   — Common stock, $0.001 par value, 950,000,000 authorized at June 30, 2026 and December 31, 2025; 522,901,181 and 444,534,694 issued at June 30, 2026 and December 31, 2025, respectively; 498,932,431 and 420,065,944 outstanding at June 30, 2026 and December 31, 2025, respectively 523   444 Additional paid-in capital 2,656,313   1,285,202 Treasury stock at cost, 23,968,750 and 24,468,750 at June 30, 2026 and December 31, 2025, respectively (148,309)  (151,509)Accumulated deficit (2,361,243)  (993,692)Total TeraWulf Inc. stockholders' equity 147,284   140,445 Noncontrolling interests 244   — Total equity 147,528   140,445 TOTAL LIABILITIES AND EQUITY$8,048,395  $6,558,182                 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands, except number of shares and loss per common share)

 Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025         Revenue:       Digital asset revenue$12,835  $47,636  $25,825  $82,041 HPC lease revenue 31,932   —   52,954   — Total revenue 44,767   47,636   78,779   82,041         Costs and expenses:       Cost of revenue (exclusive of depreciation shown below) 12,400   22,094   14,761   46,647 Operating expenses 21,705   2,039   30,721   3,183 Operating expenses – related party 1,733   1,475   3,919   3,223 Selling, general and administrative expenses 112,411   9,996   240,016   56,569 Selling, general and administrative expenses – related party 14,529   4,292   14,688   7,863 Depreciation 21,241   18,786   49,718   34,360 Loss (gain) on fair value of digital assets, net 799   (887)  1,452   (17)Change in fair value of contingent consideration —   1,600   —   1,600 Impairment of property, plant, and equipment   —   25,697   — Loss on disposals of property, plant, and equipment 399   3,831   399   3,831 Total costs and expenses 185,217   63,226   381,371   157,259         Operating loss (140,450)  (15,590)  (302,592)  (75,218)Interest expense (56,389)  (4,012)  (123,460)  (8,061)Change in fair value of warrants (755,667)  —   (971,992)  — Loss on extinguishment of debt (7,116)  —   (7,116)  — Interest income 28,956   1,232   58,367   3,491 Other income 930   —   930   — Loss before income tax and equity in net loss of investee (929,736)  (18,370)  (1,345,863)  (79,788)Income tax provision (28)  —   (56)  — Equity in net loss of investee, net of tax (11,063)  —   (22,611)  — Net loss (940,827)  (18,370)  (1,368,530)  (79,788)Less: net loss attributable to noncontrolling interests (910)  —   (979)  — Net loss attributable to TeraWulf Inc$(939,917) $(18,370) $(1,367,551) $(79,788)        Loss per common share:       Basic and diluted$(1.94) $(0.05) $(3.01) $(0.21)        Weighted average common shares outstanding:       Basic and diluted 485,734,901   386,895,095   454,540,588   385,032,650                                 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands; unaudited)

 Six Months Ended June 30,  2026   2025 CASH FLOWS FROM OPERATING ACTIVITIES:   Net loss$(1,368,530) $(79,788)Adjustments to reconcile net loss to net cash (used in) provided by operating activities:   Amortization of debt issuance costs, commitment fees and accretion of debt discount 23,000   1,215 Related party expense settled with respect to common stock —   2,375 Stock-based compensation expense 185,357   39,978 Stock-based charitable contribution 14,390   — Depreciation 49,718   34,360 Accretion of asset retirement obligations 435   — Change in asset retirement obligations estimate 15   — Amortization of right-of-use asset 3,745   1,435 Revenue recognized from digital assets mined and hosting services (25,825)  (82,041)Loss (gain) on fair value of digital assets, net 1,452   (17)Change in fair value of contingent consideration —   1,600 Impairment of property, plant, and equipment 25,697   — Loss on disposals of property, plant, and equipment 399   3,831 Change in fair value of warrants 971,992   — Loss on extinguishment of debt 7,116   — Deferred income tax provision 56   — Other income (43)  — Equity in net loss of investee, net of tax 22,611   — Changes in operating assets and liabilities:   Increase in accounts receivable (12,123)  (544)Increase in prepaid expenses (12,042)  (3,259)Increase in other current assets (7,416)  (1,027)Decrease in deferred charges 289   — Decrease (increase) in other assets 5,348   (7,700)Increase in accounts payable 5,584   355 (Decrease) increase in accrued interest and other current liabilities (12,394)  1,770 Increase (decrease) in other amounts due to related parties 464   (750)(Decrease) increase in deferred rent liability (30,843)  90,000 Decrease in operating lease liability (1,003)  (43)Decrease in other liabilities (1,749)  (73)Net cash (used in) provided by operating activities (154,300)  1,677     CASH FLOWS FROM INVESTING ACTIVITIES:   Purchase of and deposits on plant and equipment (1,378,514)  (213,629)Proceeds from sales of property, plant and equipment 68   1,882 Cash paid for asset acquisition (231,350)  — Acquisition of a business, net of cash acquired —   (2,731)Purchase of securities (20,563)  — Proceeds from sale of digital assets 24,643   82,382 Net cash used in investing activities (1,605,716)  (132,096)    CASH FLOWS FROM FINANCING ACTIVITIES:   Proceeds from issuance of short-term debt, net of issuance costs paid of $7,250 and $0 92,750   — Repayment of short-term debt (100,075)  — Payment of debt issuance costs for revolving credit facility (2,145)  — Proceeds from issuance of common stock, net of issuance costs paid of $35,864 and $0 1,199,820   — Proceeds from exercise of warrants 7,038   — Purchase of treasury stock —   (33,292)Payments of tax withholding related to net share settlements of stock-based compensation awards (131,539)  (18,936)Net cash provided by (used in) financing activities 1,065,849   (52,228)    Net change in cash and cash equivalents (694,167)  (182,647)Cash, cash equivalents and restricted cash at beginning of period 3,722,775   274,065 Cash, cash equivalents and restricted cash at end of period$3,028,608  $91,418     Cash paid during the period for:   Interest$131,072  $7,114 Income taxes$—  $—         

Non-GAAP Measure

The Company presents Adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States (“U.S. GAAP”). The Company defines non-GAAP “Adjusted EBITDA” as net loss adjusted for: (i) impacts of interest, taxes, depreciation and amortization; (ii) stock-based compensation expense, amortization of right-of-use asset, accretion of asset retirement obligations, related party expenses settled with respect to Common Stock and stock-based charitable contribution to The TeraWulf Charitable Foundation which are non-cash items that the Company believes are not reflective of its general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) equity in net loss of investee, net of tax, related to the Abernathy Joint Venture; (iv) interest income and other income for which management believes are not reflective of the Company’s ongoing operating activities; (v) change in fair value of warrant liabilities, changes in fair value of contingent consideration, loss on extinguishment of debt, loss on disposals of property, plant and equipment and impairment of property, plant and equipment which are not reflective of the Company’s general business performance; and (vi) acquisition-related transaction costs which management believes are not reflective of the Company’s ongoing operating activities.

Management believes that providing this non-GAAP financial measure allows for meaningful comparisons between the Company's core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management's internal use of non-GAAP Adjusted EBITDA, management believes that Adjusted EBITDA is also useful to investors and analysts in comparing the Company’s performance across reporting periods on a consistent basis. Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate the Company’s revenues). For example, the Company expects that share-based compensation expense, which is excluded from Adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, directors and consultants.

The Company’s Adjusted EBITDA measure may not be directly comparable to similar measures provided by other companies in the Company’s industry, as other companies in the Company’s industry may calculate non-GAAP financial results differently. The Company's Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered as an alternative to net loss or any other measure of performance derived in accordance with U.S. GAAP. Although management utilizes internally and presents Adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by U.S. GAAP financial results. Accordingly, Adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company’s condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP.

The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure (i.e., net loss) for the periods indicated (in thousands):

 Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Net loss attributable to TeraWulf, Inc$(939,917) $(18,370) $(1,367,551) $(79,788)Net loss attributable to non-controlling interest (910)  —   (979)  — Net loss (940,827)  (18,370)  (1,368,530)  (79,788)Adjustments to reconcile net loss to non-GAAP Adjusted EBITDA:       Equity in net loss of investee, net of tax 11,063   —   22,611   — Income tax provision 28   —   56   — Other income (930)  —   (930)  — Interest income (28,956)  (1,232)  (58,367)  (3,491)Loss on extinguishment of debt 7,116   —   7,116   — Change in fair value of warrants 755,667   —   971,992   — Interest expense 56,389   4,012   123,460   8,061 Loss on disposals of property, plant, and equipment 399   3,831   399   3,831 Impairment of property, plant, and equipment —   —   25,697   — Change in fair value of contingent consideration —   1,600   —   1,600 Depreciation 21,241   18,786   49,718   34,360 Accretion of asset retirement obligations 267   —   435   — Amortization of right-of-use asset 1,874   750   3,745   1,435 Stock-based compensation expense 83,939   1,304   185,357   39,978 Stock-based charitable contribution 14,390   —   14,390   — Related party expense settled with respect to common stock —   2,375   —   2,375 Acquisition-related transaction costs —   1,475   438   1,475 Non-GAAP Adjusted EBITDA$(18,340) $14,531  $(22,413) $9,836