Bitcoin miner TeraWulf reported a strong third quarter, with revenue climbing 87% year-over-year to $50.6 million. The growth was fueled by a combination of higher Bitcoin prices and the company’s strategic expansion into artificial intelligence (AI) computing services.

Digital asset mining accounted for the bulk of the revenue, bringing in $43.4 million. This impressive figure came despite a lower mining output, as the company produced 377 Bitcoin in the quarter ending September 30, compared to 555 in the same period last year. The difference was more than covered by the market, with the average price of Bitcoin nearly doubling to $114,390 from last year’s Q3 average of $61,023.

Partnerships Drive Pivot to High-Performance Computing

According to CEO Paul Prager, recent quarters have been pivotal for TeraWulf as it diversifies beyond a pure Bitcoin mining model. A key part of this strategy involves new partnerships and revenue streams from high-performance computing leases.

The company expanded its collaboration with AI infrastructure provider Fluidstack and Google at its Lake Mariner facility in New York. To fund the data center build-out, TeraWulf announced a $3.2 billion senior secured notes offering in October. It also secured three 10-year lease agreements with Fluidstack valued at a combined $6.7 billion.

As part of the deal, Google backed $1.8 billion of Fluidstack’s lease obligations. In return, Google received 41 million shares of TeraWulf common stock, securing an 8% equity stake and becoming the company’s second-largest shareholder.

Stock Performance and Industry Context

TeraWulf’s stock (WULF) closed at $14.30 on Monday, a 3.8% gain for the day, though it saw a slight 2.5% dip in after-hours trading. The reported revenue of $50.6 million fell squarely within the preliminary guidance of $48 million to $52 million issued in late October.

The company’s shift toward AI reflects a broader trend among cryptocurrency miners. Since the Bitcoin halving in April 2024 cut mining rewards in half, many operators have begun allocating their energy and infrastructure capacity to the growing demand for AI and high-power computing services. TeraWulf’s Q3 results demonstrate that while Bitcoin mining remains a core business, diversification is becoming a critical component of its growth strategy.