Terawulf Inc (NASADQ: WULF) soared nearly 50% this morning after announcing “two 10-year high-performance computing (HPC) colocation agreements” with the London-based Fluidstack.
The announced artificial intelligence (AI) deals represent up to $8.7 billion in contracted revenue over the next two decades, the company’s press release confirmed on Thursday.
Terawulf stock has been in a sharp uptrend over the past four months.
At the time of writing, the digital asset technology company is trading at about 3.5x its price in early April.
Why are Fluidstack deals positive for Terawulf stock?
Terawulf’s colocation agreements with Fluidstack are significant for investors as they anchor long-term growth and validate its pivot into artificial intelligence infrastructure.
Backed by Google’s $1.8 billion financial support and equity stake, the awards meaningfully de-risk execution while boosting credibility as well.
With 200+ MW of liquid-cooled AI capacity coming online by the end of 2026, WULF shares are strongly positioned within hyperscale compute.
Additionally, the aggressive deployment timeline and high-margin lease structure (85% NOI) also suggest strong profitability ahead.
In short, this strategic expansion into AI hosting marks a defining moment for the company, driving investor enthusiasm and unlocking significant further upside in Terawulf stock.
Q2 earnings also bode well for WULF shares
Terawulf shares may be worth owning for the second half of 2025 also because the Nasdaq-listed firm recently reported reasonably strong financials for its second quarter (Q2).
According to the company’s earnings release, its adjusted EBITDA improved to $14.6 million in the recently concluded quarter, a significant sequential improvement from negative $4.7 million in Q1.
In total, the Easton-headquartered business mined 485 Bitcoin during the quarter – up 29% versus the prior quarter – helping revenue reach $47.6 million.
More importantly, Terawulf maintained hash rate at 12.2 EH/s – up 53% on a year-over-year basis.
That said, WULF stock remains unattractive for income-focused investors as it doesn’t currently pay a dividend.
Is it too late to invest in Terawulf shares?
Note that Terawulf Inc is currently going for a price-to-sales (P/S) multiple more than 14, which isn’t unheard of for high-growth AI stocks.
According to Barchart, the consensus rating on WULF shares also currently sits at “strong buy”.
All in all, Terawulf’s explosive rally on the Fluidstack deal today reflects investor confidence in its strategic pivot toward AI infrastructure and robust operational momentum.
The aforementioned agreements, Google’s backing, and expanding HPC capacity position the firm as a formidable player in hyperscale compute, and its positive Q2 EBITDA and rising BTC output further reinforce the bullish narrative.
While WULF’s price-to-sales ratio may be over-stretched for value investors, its growth trajectory suggests continued upside potential.
As Terawulf scales its AI hosting footprint, WULF shares may remain a compelling bet for growth-oriented investors through the second half of 2025.
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