Shares of TeraWulf Inc. (WULF) experienced a significant rally, climbing nearly 17% during Tuesday's trading session. The surge followed two major announcements from the company: a multi-billion dollar joint venture to expand into the artificial intelligence sector and a strong outlook for its third-quarter financial results.
The company's stock price closed at $15.94, marking a gain of $2.30 for the day. This investor enthusiasm was fueled by news of a strategic partnership that positions TeraWulf as a growing player in the high-demand AI infrastructure market.
Key Takeaways
- TeraWulf (WULF) stock rose 16.86% after announcing a new AI joint venture and positive Q3 2025 financial projections.
- The company entered a $9.5 billion joint venture with Fluidstack to build a 168 MW AI computing facility in Texas, in which TeraWulf holds a 51% stake.
- TeraWulf projected Q3 revenue between $48 million and $52 million, an 84% year-over-year increase.
- Adjusted EBITDA is expected to be between $15 million and $19 million, a significant rise from $6 million in the prior year's quarter.
Major AI Infrastructure Investment
The primary driver behind the stock's performance was the announcement of a massive joint venture with Fluidstack. This strategic partnership aims to develop a state-of-the-art 168 megawatt (MW) AI compute facility located in Abernathy, Texas.
TeraWulf will hold a 51 percent majority stake in the joint venture, giving it significant control over the new operation. This move represents a substantial expansion beyond its core business and a direct entry into the booming AI infrastructure space.
Project by the Numbers
- Total Commitment Value: Approximately $9.5 billion
- Contract Length: 25-year hosting agreement
- Facility Capacity: 168 MW
- TeraWulf's Stake: 51%
The deal is underpinned by a 25-year hosting commitment valued at approximately $9.5 billion. This long-term agreement provides a stable and predictable revenue stream, which was a key factor in the positive market reaction. Building large-scale data centers for AI applications requires immense capital and energy, and this venture positions TeraWulf to capitalize on the growing demand for AI computing power.
Strong Financial Projections Boost Confidence
In a separate but equally impactful announcement, TeraWulf released preliminary financial metrics for the third quarter of 2025. The company's outlook significantly exceeded market expectations and pointed to robust operational performance.
Projected revenue for the quarter is expected to fall between $48 million and $52 million. The midpoint of this range represents an impressive 84% increase compared to the same period last year, signaling strong growth in its core operations.
Understanding Key Financial Metrics
Revenue represents the total income generated from a company's primary operations. Adjusted EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is often used to measure a company's operational profitability without the influence of accounting and financial deductions.
Profitability Shows Significant Improvement
Beyond top-line growth, the company also projected a substantial increase in profitability. Adjusted EBITDA is forecasted to be in the range of $15 million to $19 million.
This is a dramatic improvement from the $6 million in adjusted EBITDA reported in the third quarter of the previous year. Such a sharp increase suggests that the company is not only growing its revenue but is also improving its operational efficiency and margins.
Market Reacts with High Volume Trading
The dual announcements triggered a flurry of activity for WULF shares on Tuesday. The stock opened for trading at $13.50, well above its previous close of $13.64, and quickly gained momentum.
Throughout the day, the stock reached an intraday high of $16.20 before settling at $15.94. The trading volume for the day was significantly higher than its daily average, indicating a strong influx of investor interest. The day's low was recorded at $13.40.
WULF Trading Day at a Glance (Oct 28, 2025)
- Opening Price: $13.50
- Closing Price: $15.94 (+16.86%)
- Day's High: $16.20
- Day's Low: $13.40
- Previous Close: $13.64
The stock's 52-week range stands between $2.35 and $18.75. Tuesday's high pushed the share price closer to its one-year peak, reflecting the market's optimism about the company's new strategic direction and its strengthening financial position.
