TeraWulf's $63 million AI lease line contains $46 million of rent

TeraWulf's▲+2.58% — TeraWulf, up 2.58 percent today third quarter reads at headline level like a bitcoin miner completing its AI pivot; in the company's own documents↗ it is a construction story with excellent tenants. The wires led with the share: high-performance-computing leasing supplied 83% of revenue ¹³. The base was $76.2 million for the quarter, and the $63.0 million HPC line bundles rent with cost recoveries ¹.

TeraWulf's own investor deck↗ counts $46.0 million of it as rent, about 60% of total revenue, footnoting the rest to power pass-through, tenant fit-out and maintenance ². The company has already made the correction the wires skipped.

The 83% headline bundles rent with reimbursements

Only the rent is landlord income. Fit-out reimburses TeraWulf for building out a tenant's space; power pass-through recovers electricity costs. On the earnings call↗, fit-out alone added $11.3 million and pass-through $5.4 million ⁴. Both are costs routed through the revenue line rather than margin on AI demand.

The profit is a warrant mark, and the cash is going out

Most of the $709.9 million of net income is a paper gain on warrants: a $728.4 million non-cash mark on warrant and derivative liabilities, the same line that ran to a loss a year earlier ¹. Rent actually collected was the smaller $46.0 million ¹. Operations lost $88.2 million, and adjusted EBITDA came in at negative $12.8 million ¹.

Cash, cash equivalents and restricted cash fell about $600 million over the quarter, to $2.4 billion, while net debt rose to $3.4 billion ². Part of the replacement is capital recycling: TeraWulf sold its 50.1% stake in the Abernathy joint venture, which is building a 168-megawatt campus in Abernathy, Texas, to an investor group led by Fluidstack, the data-center cloud company whose Lake Mariner leases carry Google credit support ²⁴⁵.

Shareholders fund the buildings until the rent starts

Shareholders own, through TeraWulf, 102 megawatts of billing capacity at Lake Mariner, the company's campus in Barker, New York ¹. Another 737 megawatts is under construction, just over half of it for AnthropicPVT$350B — Anthropic, private, latest valuation $350B, the AI lab behind Claude ¹²⁵. Of that, 336 megawatts sit at Lake Mariner, where building CB-4 begins billing rent this quarter and CB-5 in early 2027; the remaining 401 megawatts are the Justified campus in Kentucky, under a 20-year Anthropic lease worth about $19 billion↗, and they first bill when phased completions begin in late 2027 ¹²⁵.

Google's▲+0.21% — Google, up 0.21 percent today credit support, announced November 4, stands behind the project debt meant to fund the Anthropic build ⁵⁶. The gigawatt of Kentucky power TeraWulf lined up in October, still awaiting state approval, has no tenant yet; the deck's customer line reads "active discussions" ¹².

Asset sales and debt fill the gap until the first Anthropic invoice

Between now and the first Anthropic invoice, quarters look like this one: rent covering part of the bill, asset sales and debt covering the rest. TeraWulf is doing the work that turns contracted power into billed capacity, inside its cost guidance, and it deserves the rent if it delivers ¹. Until then the carrying cost sits with shareholders, then with lenders, with Google behind them.