TeraWulf Inc (NASDAQ:WULF) shares are trading lower Monday after initially jumping after the company announced a deal to expand into AI-driven high performance computing hosting.
What Happened: TeraWulf announced it signed long-term data center lease agreements with cloud and AI services company Core42.
Under the agreements, TeraWulf will deliver over 70 megawatts (MW) of data center infrastructure to host Core42's deployment at the Lake Mariner facility. The infrastructure is expected to be released in phases between the first and third quarters of 2025.
TeraWulf noted that the move represents a strategic push into AI-driven computing, which it believes will complement its profitable Bitcoin (CRYPTO: BTC) mining operations, aligning with its mission to leverage scalable energy to power the digital economy.
"Our strategic relationship with G42, and most specifically with Core42, positions TeraWulf at the intersection of two of today's most transformative computational networks: AI compute and Bitcoin mining," said Paul Prager, CEO of TeraWulf.
"This agreement not only diversifies our revenue streams but also significantly enhances our long-term earnings potential."
The data center leases include two five-year renewal options, as well as provisions for expanding near-term hosting capacity for Core42 by an additional 135 MW.
TeraWulf noted that Core42's GPU clusters will feature Dell Integrated Rack Scalable Solutions, including direct liquid cooled Dell PowerEdge XE9680L GPU servers.
WULF Price Action: TeraWulf shares were down 13.3% at $5.715 at the time of publication, according to Benzinga Pro.
Photo: Pixabay.
