On Monday, TeraWulf Inc. (WULF), a $2.55 billion market cap company operating in the finance services sector, announced it has entered into long-term data center lease agreements with Core42, a G42 company. According to InvestingPro data, the company has demonstrated impressive revenue growth of 131% over the last twelve months, though analysts note the company may face profitability challenges in the near term.
According to the announcement, TeraWulf will provide over 70 megawatts of turn-key data center infrastructure at its Lake Mariner facility in Upstate New York to host Core42's technology deployment.
The infrastructure is scheduled to be operational in phases, with the first phase set for the first quarter of 2025 and the final phase by the third quarter of 2025. TeraWulf will tailor the data halls to accommodate Core42's GPU clusters, which will include Dell (NYSE:DELL) Integrated Rack Scalable Solutions, specifically the Dell IR5000.
These racks will feature direct liquid cooled Dell PowerEdge XE9680L GPU servers. With analyst price targets ranging from $9 to $11, InvestingPro subscribers can access detailed analysis of TeraWulf's growth prospects and 14 additional key investment insights.
The lease agreements include options for two additional five-year terms and provisions that could potentially expand Core42's hosting capacity by an additional 135 MW gross, equivalent to 108 MW of critical IT load.
The news of this strategic partnership between TeraWulf and Core42 highlights TeraWulf's commitment to expanding its infrastructure capabilities and its role in supporting advanced technology deployments. While the stock has seen significant volatility with a beta of 4.05 and a recent one-week decline of 19.78%, it has delivered an impressive 207% return over the past year.
The company's stock is traded on The Nasdaq Capital Market under the ticker symbol WULF. For comprehensive analysis and valuation metrics, investors can access TeraWulf's detailed Pro Research Report, available exclusively on InvestingPro.
In other recent news, Terawulf Inc (NASDAQ:WULF). has seen noteworthy developments. The company's Q3 earnings report showed a 24% decrease in revenues to $27.1 million and a 21% decrease in Bitcoin mining. However, Terawulf raised $500 million through a convertible bond offering and initiated a $115 million share repurchase program.
Analyst firms Rosenblatt Securities, Cantor Fitzgerald, and Needham have maintained positive ratings on Terawulf, adjusting their price targets for the company's shares.
Terawulf also announced the promotion of Sean Farrell to Chief Operating Officer, reflecting his leadership and operational excellence. In addition, the company reported significant progress at its Lake Mariner facility, with substantial electrical infrastructure upgrades and an operational self-mining capacity of 8.4 EH/s.
Rosenblatt Securities recently maintained its Buy rating on Terawulf shares, citing the company's strategic upgrades to its infrastructure, including the upgrade of its power systems to include high-voltage redundant power feeds. This upgrade positions Terawulf's data center to potentially offer high-performance computing and artificial intelligence co-location opportunities.
These updates follow Terawulf's recent production and operations update for November 2024, which met expectations. The company has shown remarkable revenue growth of 131% in the last twelve months.
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