The former Bitcoin mining company secured a 20-year lease with Anthropic projected to generate $19 billion in revenue, marking one of the largest crypto-to-AI infrastructure transitions yet.
TeraWulf, a company that built its reputation mining Bitcoin, just signed a 20-year lease with Anthropic, the AI lab behind Claude, for a massive data center campus in Kentucky. The deal covers roughly 401 megawatts of critical IT load capacity and is projected to generate approximately $19 billion in contracted revenue over its lifetime.
The lease centers on TeraWulf’s Justified Data campus in Hawesville, Kentucky, with initial capacity expected to come online in the second half of 2027. Full buildout should be completed by early 2028.
Building out a facility of this scale won’t come cheap. Capital expenditure estimates range from $3.2 billion to $4 billion, based on roughly $8-10 million per megawatt of capacity. To help fund the pivot, TeraWulf simultaneously announced the sale of its 50.1% stake in the Abernathy Joint Venture, a 168 MW AI project in Texas, to a consortium led by Fluidstack. That deal monetized approximately $450 million in invested capital at a premium, freeing up resources for wholly owned projects like the Anthropic campus.
Wall Street noticed. TeraWulf’s stock surged between 10% and 16% intraday following the twin announcements, though some of those gains moderated amid broader market volatility around AI infrastructure stocks.
TeraWulf isn’t the first crypto-native company to make this play. Marathon Digital, Hut 8, Core Scientific, and others have all explored or executed some version of the Bitcoin-to-AI infrastructure transition. Core Scientific notably signed a $3.5 billion deal with CoreWeave in 2024, setting a template for the kind of long-term hosting agreements that are now reshaping the former mining sector.
What makes the TeraWulf-Anthropic deal distinctive is the sheer scale and duration. A 20-year contract is rare in any industry, and it provides the kind of revenue visibility that Bitcoin mining, with its halving cycles and price volatility, simply cannot offer.
The financial math here is worth unpacking. TeraWulf is projecting $19 billion in contracted revenue over 20 years from a single campus that will cost somewhere between $3.2 billion and $4 billion to build.
The key risk is execution. Raising and deploying $3.2 to $4 billion in capital is a massive undertaking for a company of TeraWulf’s size. Dilution is a real concern if the company leans heavily on equity raises.
Investors watching this space should pay close attention to how TeraWulf structures its financing over the coming quarters. The gap between a $450 million capital infusion from the Abernathy sale and a $3.2 to $4 billion buildout cost is substantial.
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