TeraWulf (WULF) has announced an expansion of its strategic partnership with the AI cloud platform Fluidstack, launching a joint venture aimed at developing 168 megawatts (MW) of critical IT load at its campus in Abernathy, Texas. This venture is part of a significant 25-year hosting agreement projected to generate around $9.5 billion in contracted revenue.
Under the terms of the agreement, TeraWulf will maintain a 51% majority share in the joint venture, which is anticipated to complete the facility in the latter half of 2026. This partnership also grants TeraWulf exclusive rights to collaborate with Fluidstack on a subsequent project of similar scale, continuing under comparable commercial conditions.
This transaction elevates TeraWulf’s contracted high-performance computing (HPC) platform capacity to over 510 MW of critical IT load. It aligns with the company’s revised growth strategy, which aims to secure an additional 250 MW to 500 MW of contracted capacity on an annual basis.
Significantly, project financing is being backed by Google, which has pledged approximately $1.3 billion to support Fluidstack’s long-term lease obligations. This financial backing is expected to enhance the credit quality of the venture’s debt, reinforcing the operational stability of the joint endeavor. Importantly, no new equity or warrants were issued as part of this agreement.
In a bullish outlook, research firm JonesResearch has set a price target of $24 for WULF, indicating a potential upside of 72%. Following the announcement, WULF shares saw an increase of 8.5% in pre-market trading.
This partnership marks a strategic advancement for TeraWulf as it continues to innovate and expand within the rapidly growing sector of high-performance computing, bolstered by a substantial commitment from a tech industry leader.