Back to top

Image: Bigstock

WULF Expands HPC Footprint With Fluidstack Pact: What's Ahead?

Read MoreHide Full Article

Key Takeaways

  • TeraWulf's JV with Fluidstack adds 168 MW of HPC capacity at its Abernathy, TX campus.
  • The Fluidstack partnership expands WULF's HPC footprint.
  • Preliminary Q3 2025 sales of $48 to $52M mark 84% year-over-year growth for TeraWulf.

TeraWulf’s (WULF - Free Report) prospects are expected to benefit from its growing footprint in the high-performance computing (HPC) domain, thanks to its latest joint venture (JV) with Fluidstack, a premier AI cloud platform that builds and operates HPC clusters. The JV, in which WULF holds a majority of 51% share, will develop and deliver 168 MW of critical IT load at the Abernathy, TX, campus. The facility is expected to be delivered in the second half of 2026. 

The 25-year JV promises roughly $9.5 billion in contracted revenues and TeraWulf’s contracted HPC platform now exceeds 510 MW of critical IT load. Under TeraWulf’s existing deal with Fluidstack, the former will deliver more than 360 MW of critical IT load at its Lake Mariner data center campus in Western New York. The Lake Mariner facility can expand up to 500 MW in the near term and up to 750 MW with targeted transmission upgrades. The existing deal represents roughly $6.7 billion in contracted revenues, with total contract revenues expected to hit $16 billion.

WULF’s growing HPC footprint is expected to drive top-line growth. As per the company’s preliminary third-quarter 2025 results, revenues are expected to be between $48 million and $52 million, representing roughly 84% year-over-year growth. WULF now expects adjusted EBITDA $15 million and $19 million.

WULF Faces Tough Competition

TeraWulf faces stiff competition from the likes of IREN Limited (IREN - Free Report) and Applied Digital (APLD - Free Report) in the bitcoin mining and HPC markets.

IREN Limited has doubled its AI cloud capacity to 23k GPUs through the purchase of an additional 12.4k GPUs for roughly $674 million. IREN now expects to achieve $500 million in AI Cloud annualized run-rate revenue (ARR) by the first quarter of fiscal 2026. IREN is on track to achieve $1.25 billion in annualized revenues, with roughly $1 billion coming from bitcoin mining, and $200-$250 million from AI Cloud (by December 2025). 

Applied Digital is benefiting from robust demand for data center infrastructure and the growing focus on energy efficiency. Strong spending by hyperscalers, which is expected to be $500 billion in 2027, bodes well for APLD. Applied Digital’s Data Center Hosting business provides energized infrastructure services to crypto mining customers. The company currently operates sites in Jamestown and Ellendale, ND, with a total hosting capacity of approximately 286 megawatts (MWs).

WULF’s Share Price Performance, Valuation & Estimates

TeraWulf shares have appreciated 39.5% in the past month, outperforming the broader Zacks Finance sector’s decline of 0.6%.

WULF Stock’s Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The WULF stock is trading at a premium, with a trailing 12-month price/book of 39.4X compared with the industry’s 4.28X. TeraWulf has a Value Score of F.

WULF Valuation

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for 2025 earnings is pegged at a loss of 36 per share, wider by 3 cents over the past seven days. The company reported a loss of 19 cents per share in 2024.
 

 

 

TeraWulf currently carries a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Applied Digital Corporation (APLD) - free report >>

IREN Limited (IREN) - free report >>

TeraWulf Inc. (WULF) - free report >>

Published in