TeraWulf Inc. (NASDAQ:WULF) stock rocketed over 40% during midday trading on Thursday. The rally was ignited by a $3.7 billion AI data center deal with Fluidstack, backed by Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google's $1.8 billion guarantee. The 10-year contract to supply 200 megawatts of high-density power at Lake Mariner has social media buzzing with positive sentiment. Yet, a cryptic reveal from CEO Paul Prager in the second quarter earnings call points to a bigger catalyst: the completed integration of Beowulf Electricity & Data, his former private energy firm.

• WULF is charging ahead with explosive momentum. Get the scoop here.

Beowulf's Power Play Unleashed

This isn't mere corporate cleanup. Beowulf, TeraWulf's power and infrastructure backbone, was acquired in the second quarter, streamlining operations and slashing costs. Prager, touting "shareholder alignment," said the move consolidates expertise, adding 94 Beowulf employees to TeraWulf's roster. This bolsters TeraWulf's edge in delivering low-cost, zero-carbon power, critical in the AI infrastructure race where energy is the bottleneck.

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With Lake Mariner's capacity at 500 megawatts--and a potential rise to 750--plus a new 400-megawatt Cayuga site, TeraWulf is scaling fast. Its Core42 partnership is on track, with WULF Den generating revenue, CB-1 starting soon, and CB-2 set for Q4.

Beowulf's integration could trim the $8-10 million per megawatt build cost for Fluidstack, despite higher labor and design tweaks, boosting the projected 85% net operating margins.

Prager's Vision: Execution Is Key

Prager calls TeraWulf a "show-me story," with skeptics awaiting Core42's buildout completion. But the Beowulf acquisition, shrouded in intrigue, could be the spark that cements TeraWulf's AI dominance. With $300 million in project financing led by Morgan Stanley and a $200 million share repurchase program, TeraWulf is financially nimble.

As the Fluidstack deal fuels today's rally, Prager's Beowulf masterstroke--paired with Google's backing--positions TeraWulf to outshine rivals, leaving investors eager for the next reveal.

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