TeraWulf Inc. (WULF): Business Model Canvas [Dec-2025 Updated]

You're trying to cut through the noise and see if TeraWulf Inc.'s aggressive shift into High-Performance Computing (HPC) is just talk or a real business transformation, and honestly, the Q3 2025 data tells a compelling story beyond just Bitcoin. We're looking at a company that secured over $17 billion in long-term HPC leases, fundamentally altering their revenue stability. That's the whole game right there. So, let's map out the nine building blocks of the TeraWulf Inc. Business Model Canvas to see precisely how they are marrying low-carbon power, massive GPU capacity, and enterprise contracts to build this dual-engine operation.

TeraWulf Inc. (WULF) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships that underpin TeraWulf Inc.'s massive pivot into high-performance computing (HPC) infrastructure. These aren't just vendor agreements; they're multi-billion dollar, long-duration commitments that define the company's near-term revenue visibility.

The partnership with Fluidstack, a premier AI cloud platform, is central to TeraWulf's growth story. You see this across multiple sites. At the Lake Mariner Campus in Western New York, TeraWulf has a deal to deliver more than 360 MW of critical IT load under a 10-year agreement, which represents roughly $6.7 billion in contracted revenues. Separately, two other 10-year Fluidstack leases, also backed by Google, provide 450 MW of capacity with approximately $6.7 billion in contracted revenue. Overall, TeraWulf's contracted HPC platform now exceeds 510 MW of critical IT load.

The expansion is cemented through Joint Ventures (JV), most notably the Abernathy HPC campus in Texas, formed with Fluidstack and Google. TeraWulf holds up to a controlling 51% interest in this venture. The initial phase commits to developing and delivering 168 MW of critical IT load under a 25-year lease, which promises roughly $9.5 billion in contracted revenue to the JV. Furthermore, TeraWulf secured up to a 51% ownership interest in a future Fluidstack-led project of approximately 200 MW on substantially similar commercial terms.

Google's involvement acts as a significant de-risking factor for these large infrastructure plays. For the Abernathy JV, Google is backing $1.3 billion of Fluidstack's long-term lease obligations to support project debt. In a broader demonstration of confidence, Google has taken an equity stake in TeraWulf of up to 14%. This financial backing is key; for instance, in an earlier Fluidstack deal, Google backstopped $1.8 billion of lease obligations in exchange for warrants representing approximately 8% equity ownership.

The relationship with Core42 is another pillar of contracted revenue. Under the Core42 leases, TeraWulf's subsidiary, La Lupa Data LLC, is contracted to deliver 72.5 MW of GPU-optimized capacity. This commitment is structured over ten years and is expected to generate approximately $1.1 billion in contracted revenue. Management reported being on track to deliver 60 MW of critical IT for Core42 near the end of 2025.

Here's a quick look at the scale of these major HPC commitments as of late 2025:

TeraWulf's stated focus on sustainability is tied directly to its power sourcing strategy. The company emphasizes its vertically integrated infrastructure is primarily powered by zero-carbon energy sources. This commitment to low-carbon compute capacity is a key differentiator sought by its hyperscale and enterprise partners.

Key contractual elements defining the partnership structure include:

• Secured interconnection approval at Lake Mariner to draw up to 500 MW.
• Total contracted HPC platform now exceeds 510 MW of critical IT load.
• TeraWulf holds a majority 51% stake in the Abernathy JV.
• The company has an exclusive right to partner on the next Fluidstack-led project of approximately 168 MW or 200 MW.
• TeraWulf reaffirmed its target of 250-500 MW of new HPC lease signings annually.

Finance: draft the cash flow impact of the $3.2 billion Google-backed financing by next Tuesday.

TeraWulf Inc. (WULF) - Canvas Business Model: Key Activities

You're looking at the core actions TeraWulf Inc. (WULF) takes to run its business, which is rapidly shifting from pure-play mining to a hybrid digital infrastructure provider.

Developing and operating vertically integrated data center infrastructure is central, focusing on low-carbon energy sources to power both proprietary mining and high-performance computing (HPC) hosting. As of September 30, 2025, the Lake Mariner Campus had energized 245 MW of Bitcoin-mining capacity and 22.5 MW of HPC capacity. The company is aiming for 200-250 MW of operational HPC hosting capacity by the end of 2026.

Securing long-term, credit-enhanced HPC leasing contracts is the primary growth driver now. The company executed more than 520 MW of long-term HPC leases across multiple customers as of September 30, 2025. TeraWulf signed more than $17 billion in long-term, credit-enhanced customer contracts in Q3 and into Q4 2025. The total contracted HPC IT load reported in November 2025 was 520 MW+. Here's a breakdown of the major commitments:

Bitcoin mining operations still form a foundational part of the business, though the focus is shifting. TeraWulf Inc. (WULF) reported a Bitcoin mining capacity of 12.8 EH/s as of Q2 2025, which represented a 45.5% year-over-year increase. The company self-mined 485 bitcoin during Q2 2025. The power cost per bitcoin self-mined reached $45,555 in Q2 2025.

Raising capital via debt/notes is a key activity to fund this massive infrastructure buildout without excessive equity dilution. In October 2025, the wholly-owned subsidiary WULF Compute LLC priced a $3.2 billion offering of 7.750% senior secured notes due 2030. The net proceeds are intended to finance a portion of the data center expansion at the Lake Mariner campus. Total outstanding debt as of June 30, 2025, was approximately $500.0 million in convertible senior notes due 2030.

Managing load flexibility and demand response programs provides ancillary revenue and helps manage power costs. Proceeds from demand response programs in Q3 2025 increased to $7.4 million from $3.1 million in the previous quarter (Q2 2025). Optimization efforts improved average hash rate performance under varying demand response events.

• The Lake Mariner site has interconnection approval to draw up to 500 MW.
• The company is targeting 250-500 MW of new HPC lease signings annually.
• The Q2 2025 revenue was $47.6 million.
• The Q2 2025 Adjusted EBITDA was $14.5 million.

TeraWulf Inc. (WULF) - Canvas Business Model: Key Resources

You're looking at the core assets TeraWulf Inc. (WULF) is using to power its digital infrastructure play right now. Honestly, the balance sheet strength and the physical footprint are what matter most here. If onboarding takes 14+ days, churn risk rises; that's the reality of HPC contracts.

Here's the quick math on the key tangible and contracted resources as of late 2025, based on the Q3 2025 filings and subsequent updates:

The physical and energy resources underpin the entire value proposition. You can't run high-density compute without reliable, clean power, and TeraWulf Inc. has locked down some significant access points.

• Lake Mariner Campus with 245 MW energized capacity.
• Access to zero-carbon energy (hydro/nuclear) at Lake Mariner, which leverages predominantly zero-carbon sources.
• Access to zero-carbon power at the Cayuga site, where nearly 90% of the electricity generation mix is from zero carbon-sources.
• GPU-optimized data halls for high-density compute, including capacity under leases like the Fluidstack leases backed by Google.
• Long-term rights to develop up to 400 MW at the Cayuga site, with 138 MW expected in the second half of 2026.

Finance: draft 13-week cash view by Friday.

TeraWulf Inc. (WULF) - Canvas Business Model: Value Propositions

Sustainable digital infrastructure powered by low-carbon energy.

• Zero-carbon power utilization remains above 90%.
• Energy sources include hydroelectric and nuclear power.
• Lake Mariner facility is situated on the site of a retired coal plant.

Long-term, stable revenue from contracted HPC leases (e.g., $17 billion+ signed).

TeraWulf Inc. signed more than $17 billion in long-term, credit-enhanced customer contracts in the third quarter and into the fourth quarter of 2025.

High-density compute capacity for AI and machine learning workloads.

As of Q3 2025, TeraWulf Inc. reported 520 MW+ in total contracted HPC IT load. The company reaffirmed its growth strategy targeting 250-500 MW of new contracted capacity annually.

• Lake Mariner energized 22.5 MW of HPC capacity as of September 30, 2025.
• Core42 delivery: 72.5 MW of GPU-optimized capacity.
• Abernathy JV development: 240 MW of HPC capacity, expandable to 600 MW.
• Target operational HPC hosting capacity by end of 2026: 200-250 MW.
• Cayuga site secured: 138 MW of power expected ready in Q2 2026, scalable to 400 MW.

Vertically integrated model offering cost and operational control.

TeraWulf Inc. retains up to a 51% controlling interest in the Abernathy Joint Venture. The Beowulf acquisition, valued at $52.4 million, solidified vertical control over energy generation assets.

• Projected NOI margins on Fluidstack deals: 70%.
• Attributable NOI share (51%) from Fluidstack deals: approximately $340.6 million.

Bitcoin mining for immediate, liquid digital asset generation.

Q3 2025 revenue was $50.6 million, an 87% increase year-over-year.

• Self-mined 377 Bitcoin in Q3 2025.
• Self-mined 485 Bitcoin in Q2 2025.
• Installed self-mining capacity as of Q2 2025: 12.8 EH/s.
• Total outstanding debt as of September 30, 2025: approximately $1.5 billion.

TeraWulf Inc. (WULF) - Canvas Business Model: Customer Relationships

You're looking at how TeraWulf Inc. manages its relationships across two distinct, yet increasingly intertwined, customer bases: the enterprise/hyperscale compute clients and the Bitcoin network itself. This dual focus requires different engagement models, from deep, dedicated partnership for HPC to purely automated interaction for mining.

Long-term, high-value contracts with enterprise and hyperscale customers

The relationship here is shifting from transactional to deeply embedded partnership, evidenced by the sheer scale of the commitments signed. TeraWulf Inc. signed more than $17 billion in long-term, credit-enhanced customer contracts in the third quarter and into the fourth quarter of 2025. This is underpinned by executing more than 520 MW of long-term HPC leases across its enterprise and hyperscale client base. The total contracted critical IT load secured now stands at more than 510 MW. The company has even increased its annual target for new HPC signings to 250 to 500 MW per year, showing confidence in this relationship type.

The initial revenue from this segment started in Q3 2025, with $7.2 million recognized from lease commencements at WULF Den and CB-1, representing 22.5 MW of energized hosting capacity as of September 30, 2025.

Dedicated account management for HPC leasing clients like Core42

For clients like Core42, the relationship demands dedicated attention, moving well beyond simple colocation. The agreement with Core42 involves delivering 72.5 MW of GPU-optimized capacity. This level of commitment necessitates dedicated account management to ensure the infrastructure meets specific, high-density compute needs. The initial delivery schedule for Core42 was set to complete 72.5 MW in 2025. This contrasts with the more expansive Fluidstack deals, where 360 MW of load at Lake Mariner was signed, projecting average annual revenue of approximately $670 million over ten years. The need to support these complex, multi-year buildouts and fit-outs means the relationship is high-touch and relationship-driven, requiring specialized staff, which is reflected in the increased SG&A expense that rose 17% quarter-over-quarter to $16.7 million in Q3 2025.

You see this dedicated focus in the operational structure:

• Dedicated delivery of 72.5 MW to Core42.
• Joint venture in Texas (Abernathy) with Fluidstack/Google, adding 168 MW capacity.
• EBITDA margins on the Core42 deal were projected around 75%.

Transactional relationship with the Bitcoin network for mining rewards

The relationship with the Bitcoin network is purely transactional, governed by network difficulty, energy costs, and the block reward schedule. TeraWulf Inc. holds its mined Bitcoin as a treasury asset, not for immediate sale, which stabilizes the revenue stream somewhat. In Q3 2025, the company self-mined 377 Bitcoin. This compares to 485 BTC mined in Q2 2025. The cost to generate that asset was a factor; the power cost per bitcoin self-mined in Q2 2025 was $45,555. This mining activity contributed to the total Q3 2025 GAAP revenue of $50.6 million. The Lake Mariner site had energized 245 MW of Bitcoin-mining capacity as of September 30, 2025.

Investor relations for a diverse spectrum of financially-literate decision-makers

Managing investor relationships requires transparency regarding the dual-revenue model and the significant capital structure changes. As of November 7, 2025, TeraWulf Inc. had 418.7 million shares of common stock outstanding. The company ended Q3 2025 with $712.8 million in cash, cash equivalents, and restricted cash. To support the HPC expansion, the company completed over $5.2 billion in capital markets transactions, including $3.2 billion of 7.75% Senior Secured Notes due 2030. Furthermore, Google's total backstop increased to approximately $3.2 billion, resulting in pro forma equity ownership of approximately 14%. The total outstanding debt was approximately $1.5 billion as of September 30, 2025. The company provided detailed lease accounting nuances in its investor presentation to help this audience understand the new revenue recognition.

Key financial metrics shared with this group include:

• Q3 2025 GAAP Revenue: $50.6 million.
• Q3 2025 Adjusted EBITDA: $18.1 million.
• Total Assets (as of 9/30/2025): $2.5 billion.
• Total Liabilities (as of 9/30/2025): $2.2 billion.

Finance: draft 13-week cash view by Friday.

TeraWulf Inc. (WULF) - Canvas Business Model: Channels

You're looking at how TeraWulf Inc. gets its value proposition-low-carbon, industrial-scale digital infrastructure-to its customers. The channels here are split between direct, high-value enterprise contracts and the passive, automated distribution of mining revenue.

Direct sales team securing long-duration HPC infrastructure leases

The primary channel for TeraWulf Inc.'s pivot into High-Performance Computing (HPC) hosting is a direct sales effort focused on securing long-duration, credit-enhanced infrastructure leases with major enterprise and hyperscale customers. This involves direct engagement to structure complex, multi-year capacity commitments.

As of the third quarter of 2025, the company had executed more than 520 MW of long-term HPC leases across multiple customers through its subsidiaries, La Lupa Data LLC and Akela Data LLC. The total value of long-term customer contracts signed reached over $17 billion. The company has aggressively raised its annual target for new HPC signings to 250-500 MW per year, up from prior guidance of 100-150 MW annually.

Here's a look at the scale of these direct-sold, long-term capacity channels:

The commencement of these HPC leases is now a recognized revenue stream, with $7.2 million in initial HPC lease revenue recognized in the third quarter of 2025 from WULF Den and CB-1 energizations.

The Bitcoin blockchain network for distributing mining rewards

For its legacy Bitcoin mining operations, the distribution channel is the Bitcoin blockchain network itself. TeraWulf Inc. receives its rewards directly onto its own wallets upon successful block validation, which is then converted or held as needed.

The operational scale feeding this channel includes:

• Energized Bitcoin-mining capacity at Lake Mariner as of September 30, 2025: 245 MW.
• Bitcoin mined self-mined in Q3 2025: 377 Bitcoin.
• Digital asset revenue contribution to Q3 2025 revenue of $50.6 million: $43.4 million.
• Average Bitcoin price during Q3 2025: $114,390.

Also, the company uses energy curtailment programs as a secondary, non-blockchain distribution channel for revenue, receiving $7.4 million from demand response programs in Q3 2025.

Investor relations portal for public market access (NASDAQ: WULF)

TeraWulf Inc. maintains public market access through its listing on the NASDAQ under the ticker WULF. The Investor Relations (IR) portal on the company website serves as the direct channel for disseminating official financial, operational, and strategic updates to the investment community, including filings and presentations.

Market data as of early December 2025 reflects this public channel:

The company's capital structure, which includes a debt-to-equity ratio of 4.45, is also a key data point communicated through this channel, alongside its Q3 2025 reported revenue of $50.6 million.

TeraWulf Inc. (WULF) - Canvas Business Model: Customer Segments

You're looking at TeraWulf Inc. (WULF) right now, and the customer base is definitely splitting into two distinct, high-value groups: the digital asset miners and the new, rapidly growing high-performance computing (HPC) tenants. Honestly, the shift is the story here, moving from a pure-play miner to a diversified digital infrastructure provider.

The HPC segment is where the big, long-term money is, and it's anchored by some serious counterparties. TeraWulf Inc. has executed more than 520 MW of long-term HPC leases across multiple enterprise and hyperscale customers through its subsidiaries La Lupa Data LLC and Akela Data LLC as of September 30, 2025. This is backed by over $17 billion in total long-term, credit-enhanced customer contracts signed recently. The company has now secured more than 510 MW of contracted critical IT load in total.

Here's a breakdown of those key HPC customers and their commitments:

• Hyperscale cloud providers and large technology companies (e.g., Fluidstack):

The HPC lease segment is already generating meaningful revenue, with $7.2 million recognized in the third quarter of 2025. To support this, TeraWulf Inc. is aggressively scaling its annual signing target for new HPC capacity from the previous 100 to 150 MW per year up to 250 to 500 MW annually. The operational target is to have 200-250 MW of HPC capacity operational by the end of 2026.

The second major segment is the traditional business, serving Global Bitcoin network participants through its proprietary mining operations. This segment still provides significant top-line revenue, though the focus is shifting. As of September 30, 2025, the Lake Mariner Campus had energized 245 MW of Bitcoin-mining capacity. For Q3 2025, the Digital Asset Mining revenue was approximately $43.4 million, which accounted for about 85.8% of the total revenue of $50.6 million. In that same quarter, TeraWulf self-mined 377 Bitcoin at Lake Mariner. To give you a sense of scale from earlier in the year, the BTC mining capacity reached 12.8 EH/s in Q2 2025, marking a 45.5% year-over-year increase.

Finally, you have the segment that funds all of this expansion: the Institutional and retail investors in the public equity market. These are the folks providing the capital that allows TeraWulf Inc. to sign those massive, multi-billion dollar infrastructure deals. As of September 30, 2025, the balance sheet shows total outstanding debt of approximately $1.5 billion, which includes significant convertible notes. This debt supports the aggressive growth, with the company having closed over $5.225 billion in financings, including a $3.2 billion senior secured note offering. From a valuation perspective, the stock trades at a trailing 12-month Price/Book ratio of 25.87X, which is quite high compared to the industry average of 3.2X. Analysts are looking at a consensus estimated 2025 loss of $1.51 per share, which is a key risk factor you need to watch as they transition to long-term contracted revenue.

TeraWulf Inc. (WULF) - Canvas Business Model: Cost Structure

The cost structure for TeraWulf Inc. (WULF) is heavily weighted toward operational energy expenses and significant, ongoing capital investment for infrastructure expansion, particularly for High-Performance Computing (HPC) hosting.

Cost of Revenue (exclusive of depreciation) for the third quarter of 2025 was reported at $17.1 million. This figure represented a 22% decrease from the $22.1 million recorded in the second quarter of 2025, partly due to normalized power prices in Upstate New York.

Direct operational costs, specifically power, remain a major variable expense. The power cost per self-mined bitcoin averaged $45,555 during the second quarter of 2025. This was a significant increase from the $22,954 per bitcoin seen in Q2 2024.

Fixed operating costs for the full 2025 fiscal year were projected to fall within the range of $84 million to $94 million. This projection included an estimated $50 million to $55 million allocated to Selling, General, and Administrative (SG&A) expenses.

The transition to a dual model requires substantial capital outlay. TeraWulf Inc. planned to raise approximately $3 billion through a debt offering to finance this data center expansion. Furthermore, the company completed over $5 billion in long-term financings during the third quarter and into the fourth quarter to support the Lake Mariner HPC buildout and other growth initiatives.

Financing costs are directly tied to the elevated debt load necessary to fund this growth. Total outstanding debt as of September 30, 2025, stood at approximately $1.5 billion, consisting primarily of Convertible Notes due 2030 and 2031. The GAAP interest expense recognized in the third quarter of 2025 was $9.8 million.

Here's a quick look at some key cost and debt metrics:

The cost structure is being influenced by several strategic shifts and operational factors:

• Increased staffing levels at Lake Mariner necessary to support HPC leasing.
• Accelerated depreciation expense of $7.8 million related to miner building life changes.
• The company is actively deploying capital toward the 72.5 MW of gross HPC hosting infrastructure delivery planned for 2025.
• Power prices normalized to $0.05 per kilowatt-hour for the second half of 2025.
• Loss on disposals of property, plant, and equipment net was $2 million in Q3 2025.

TeraWulf Inc. (WULF) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of TeraWulf Inc.'s (WULF) business model as of late 2025, and the shift is clear. The company is successfully layering in new, high-value revenue streams on top of its established digital asset mining base. Honestly, the Q3 2025 numbers show this pivot in action.

The total GAAP revenue for the third quarter of 2025 hit $50.6 million. That's a significant jump, representing an 87% increase year-over-year. To be fair, this growth reflects both higher Bitcoin prices and the start of the High-Performance Computing (HPC) leasing segment.

Here's the quick math on how that $50.6 million broke down for the quarter ending September 30, 2025:

What this estimate hides, though, is the sequential change. That $50.6 million in Q3 2025 was up from $47.6 million reported in the second quarter of 2025. So, even with the new HPC revenue starting, the overall growth rate slowed sequentially, but the quality of the revenue is changing fast.

The revenue streams are now clearly multi-faceted. You can see the core business is still driving the bulk, but the newer segments are material right out of the gate. Here are the key components driving these figures:

• Digital Asset Mining revenue was $43.4 million in Q3 2025.
• HPC Leasing revenue commenced in July 2025, contributing $7.2 million in the quarter.
• Proceeds from demand response programs were robust at $7.4 million for Q3 2025.
• The company executed more than 520 MW of long-term HPC leases across subsidiaries like La Lupa Data LLC and Akela Data LLC.
• One specific Fluidstack lease, backed by Google, is for 450 MW of capacity, projecting approximately $6.7 billion in contracted revenue over ten years.

The $7.2 million in initial HPC lease revenue is particularly important. It signals the successful monetization of the newly energized HPC capacity at sites like WULF Den and CB-1, which totaled 22.5 MW of energized hosting capacity as of September 30, 2025. This is the start of what management expects to be a highly predictable, high-margin revenue stream going forward.

Also, don't overlook the $7.4 million from demand response. That's a strong contribution, helping to keep the adjusted energy cost down to about 4.7 cents per kWh for the quarter. Finance: draft 13-week cash view by Friday.