Bitcoin miner TeraWulf is taking a big step away from its mining roots after signing a 20-year infrastructure agreement with artificial intelligence company Anthropic, a deal the company expects will generate roughly $19 billion in contracted revenue.
The announcement was welcomed by investors, with TeraWulf shares rising more than 10 percent in early trading. The agreement highlights how some Bitcoin mining companies are reinventing themselves as demand for AI computing power continues to soar.
For years, TeraWulf’s business depended largely on mining Bitcoin, using energy-intensive data centers filled with specialized computers to validate transactions on the blockchain.
Now, many of those same facilities are becoming valuable for a different reason.
AI companies need enormous amounts of electricity and computing capacity to train and run advanced models, and former Bitcoin miners already own much of the infrastructure required to support that demand.
For TeraWulf, that shift is becoming a core part of its future. The company said earlier this year that AI infrastructure would play an increasingly important role in its business, and the Anthropic agreement is its biggest move yet in that direction.
Terms of the deal
Under the deal, Anthropic will lease capacity at TeraWulf’s Justified Data campus in Hawesville, Kentucky.
The site is being developed specifically for AI workloads and is expected to provide around 401 megawatts of critical IT capacity once fully completed.
Construction will happen in stages, with the first capacity expected to come online during the second half of 2027 and the full campus scheduled for completion in early 2028. One of the biggest advantages of the agreement is the stability it offers.
Bitcoin mining revenue can swing dramatically depending on the price of bitcoin, mining difficulty and energy costs.
By contrast, a long-term lease with an AI customer provides predictable income over many years.
That gives TeraWulf a steadier business model while reducing its dependence on cryptocurrency market cycles.
TeraWulf exits Abernathy joint venture to fund AI expansion
Alongside the Anthropic deal, the company also announced that it will sell its 50.1 percent stake in the Abernathy joint venture to an investor group led by partner Fluidstack.
TeraWulf said the sale values its roughly $450 million investment above the amount it originally invested, allowing the company to unlock capital for future projects.
Rather than putting those proceeds back into Bitcoin mining, TeraWulf plans to invest in AI infrastructure that it fully owns.
The company’s strategy reflects a broader trend unfolding across the crypto mining industry.
As AI demand continues to surge, miners with access to large power supplies and existing data centers are increasingly finding new opportunities beyond digital assets.
Several companies have already begun converting or expanding facilities to host AI computing instead of mining Bitcoin. Investors appear to be embracing that strategy.
Even before Monday’s announcement, TeraWulf shares had gained about 85 percent this year, driven by optimism that AI infrastructure could provide stronger and more consistent long-term growth than Bitcoin mining alone.
The Anthropic agreement marks one of the clearest signs yet that the company is evolving into a broader digital infrastructure provider, using the assets it built during the crypto boom to capitalize on the rapidly expanding AI economy.
