TeraWulf’s WULF rapid shift toward high-performance computing (HPC) and AI data centers has reshaped its growth trajectory. However, this rapid expansion is being driven by a debt-driven investment strategy, raising questions about financial sustainability and the potential limits of future growth.
As of Sept. 30, 2025, WULF’s total outstanding debt had increased to approximately $1.5 billion, mainly due to multiple convertible note issuances. This aggressive borrowing continued as the company secured over $4.2 billion in additional financing, including a significant $3.2 billion senior secured note dedicated to completing the “Lake Mariner” HPC buildout. In total, over $5 billion in long-term debt now backs WULF’s expansion, significantly raising future repayment obligations and increasing its debt-to-equity risk.
Although WULF secured long-term, credit-enhanced partnerships with Google, Fluidstack and Core42 — strengthening revenue visibility — it also created structural vulnerabilities. As of Sept. 30, 2025, WULF held $2.2 billion in total liabilities against $2.5 billion in assets, highlighting a balance sheet under growing pressure.
WULF’s path forward is becoming increasingly limited due to increased near-term payments, high-interest commitments and the heavy equity financing required for projects like Abernathy. With HPC expansion ambitions now doubled to 250-500 MW per year, the pressure to secure additional funding will continue to mount.
As demand for AI compute accelerates, TeraWulf is challenged by fast-growing rivals Applied Digital APLD and CleanSpark CLSK in the HPC data-center arena.
Applied Digital is rapidly scaling its HPC and AI data center footprint, driven by strong demand for efficient, high-density infrastructure. Its focus on speed-to-delivery, water-efficient liquid cooling and secure supply chains positions it well amid grid constraints and rising hyperscaler investment. At its Ellendale campus, APLD expanded to 400 MW fully leased to CoreWeave, supporting roughly $11 billion in long-term contracted revenues. Its fully utilized 286 MW Hosting segment adds stability as new HPC lease revenues phase in from 2025 to 2027.
CleanSpark is accelerating the transition from Bitcoin mining to HPC and AI data centers. It is upgrading existing sites with modular and immersion-cooling systems and securing new, purpose-built land in Texas. CleanSpark has secured 285 MW for AI growth and is assessing a 250 MW site in Georgia, supported by its Submer cooling partnership and ongoing hyperscaler discussions for 2026 deployments.
