TeraWulf Diversifies with AI Focus During Rising Bitcoin Mining Costs

TeraWulf, a bitcoin mining company, has declared a strategic move to diversify its sources of income by going into the artificial intelligence (AI) space. The company will lease more than 70 megawatts (MW) of its data center infrastructure to Core42, a supplier of cloud and AI services, in order to accomplish this.

Expanding Infrastructure for Dual Growth

TeraWulf revealed on December 23 that Core42 will lease the infrastructure at its Lake Mariner facility in upstate New York. This move aligns with the company’s efforts to offset rising Bitcoin mining costs while tapping into the growing demand for AI-driven computing.

The leased infrastructure will be brought online in phases between the first and third quarters of 2025. “The data center leases reflect TeraWulf’s strategic extension into AI-driven computing, complementing its profitable Bitcoin mining operations,” TeraWulf stated.

Despite the announcement, TeraWulf’s share price dropped by 12% amid broader market volatility.

TeraWulf’s CEO, Paul Prager, emphasized the potential of this partnership to drive future growth. “Surging demand for scalable, energy-efficient infrastructure presents a tremendous opportunity,” he said. He highlighted that the agreement allows TeraWulf to maintain its Bitcoin mining focus while benefiting from the booming AI sector.

“This agreement not only diversifies our revenue streams but also significantly enhances our long-term earnings potential,” Prager added.

TeraWulf’s decision underscores the challenges faced by Bitcoin miners due to increasing operational costs. By leveraging its existing infrastructure for AI and cloud computing, the company positions itself to benefit from two rapidly expanding industries.