Since our last year’s roundup of Bitcoin mining stocks, stock price has doubled, having gone from $4.39 to the current $8.98 per share. During this rise, the Maryland-based company diversified into two core subsidiaries: WULF Compute and WULF Mining.
While WULF Mining continues Bitcoin mining operations, benefiting from price rise, WULF Compute is offering data centers for high-performance computing (HPC) and AI workloads. This dual focus makes TeraWulf an attractive candidate for investors seeking exposure not only to Bitcoin’s role as a hedge against central banking, but also to the secular growth of the AI/HPC megatrend.
Recent Big Tech investment in WULF stock makes it even clearer. The company’s dual-track model of Bitcoin mining and AI/HPC hosting has gained validation beyond the crypto niche. Of course, the best time for WULF exposure was last year when we covered it, but what can investors expect next?
TeraWulf as Beneficiary of Alphabet’s Data Center Diversification
For 2025 alone, committed around $75 billion to boost its data center capacity. During April’s Google Cloud Next conference, Alphabet CEO Sundar Pichai noted that “the opportunity with AI is as big as it gets.”
However, the Big Tech giant is not only investing in its own cloud computing division to meet AI demand. In mid-August, for its Q2 2025 earnings, TeraWulf revealed a $1.8 billion backstop of Fluidstack’s lease obligations provided by Google.
TeraWulf’s deal with Fluidstack for HPC/AI workloads is worth $3.7 billion in revenue over two contracts’ 10-year terms, with an option for two five-year extensions, potentially upping the value to $8.7 billion. This is where Google stepped in to finance debt by acquiring ~41 million WULF shares, or around 8% of TeraWulf’s equity stake.
On the ground, Fluidstack will utilize TeraWulf’s Lake Mariner data center campus in Western New York, delivering over 200 MW of computer power.
Given that Fluidstack is Nvidia’s partner, alongside Dell and Borealis Data Center for exascale GPU clusters, this makes TeraWulf a critical second-order beneficiary of the AI boom. With Google effectively underwriting the venture, the company is tapping into one of the fastest-growing demand curves in tech by positioning itself as hyperscaler-adjacent.
TeraWulf’s Total Addressable Market
In its Energy and AI report, the International Energy Agency (IEA) projected a 70% data center electricity consumption rise between 2024 and 2030, as the base case. The US would lead this effort, leaving behind Europe and China, which is why President Trump issued multiple executive orders to tear down bureaucratic hurdles, especially as it relates to nuclear energy.
According to McKinsey & Company, this demand would account for $6.7 trillion worth of compute power by 2030. For AI workloads specifically, the market value is forecasted to range between $3 trillion to $8 trillion in capital expenditures (capex). This largely depends on AI optimization and significant reduction of AI confabulation so that AI models are accurate and dependable.
If the latter scenario is successful, mass adoption of AI is expected in enterprise integration. However, even if there is stalling in this accuracy area, it bears remembering that compute demand varies greatly between text, image and video generation.
According to IEA, text generation requires around 0.3 Wh of energy per task by a small language model (SLM), while image generation demands 1.7 Wh. Video generation is two orders of magnitudes greater, exerting around 115 Wh for a 6-second low quality video. For comparison, charging a smartphone requires 15 Wh.
Given that there is no area of human activity in which AI could not be included, it is safe to say that TeraWulf sits at the nexus of two secular growth curves – AI adoption and clean energy infrastructure for Bitcoin mining.
TeraWulf’s Prospects and Price Target
In Q2 2025, TeraWulf mined 485 BTC, at the aforementioned Lake Mariner facility. Although this was lower than 699 BTC in the year-ago quarter, it was expected after divesting from Nautilus Cryptomine last October.
Yet, given Bitcoin’s scarcity and growing institutionalization, which drives its price, TeraWulf’s self-mined BTC value grew from $46.1 million to $47.6 million in that period. Overall, the company increased its clean BTC mining capacity 45.5% year-over-year to 12.8 EH/s.
After securing Cayuga site with an 80-year lease in Lansing, the company added 400 MW of HPC/AI capacity. By 2030, TeraWulf’s total gross capacity should be 1,150 MW, divided between Lake Mariner’s 750 MW and Cayuga’s 400 MW.
As of Q2, TeraWulf holds $90 million in cash and BTC, while having a $500 million total outstanding debt. VanEck maintains its BTC price prediction from late 2024, forecasting $180,000 per BTC by the year’s end. This price target is now likelier, considering that the Fed is signaling rate cuts despite growing inflation concerns.
In turn, TeraWulf’s debt load to scale up AI demand should be manageable.
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