Terawulf Inc. (NASDAQ: WULF) has announced a significant development with the signing of a new long-term ground lease agreement at the Lake Mariner facility. This new lease extends the term up to 80 years and expands the land area to 157 acres, increasing the infrastructure capacity to 750 MW in support of future growth.
The original lease at Lake Mariner, which had ten years remaining, has been replaced by the new ground lease with Somerset Operating Company, LLC. The new lease has a term of 35 years, with an option to extend for an additional 45 years. Importantly, it includes no escalation in annual lease payments on a per acre basis compared to the original lease and grants Terawulf exclusive access to infrastructure capacity of up to 750 MW.
The consideration paid to Somerset’s parent company in exchange for the termination of the original lease and entering into the new ground lease is comprised of 20 million shares of Terawulf’s common stock and $12 million in cash. Under the terms of the new lease, Somerset’s parent company will be prohibited from selling 15 million shares for 18 months and the remaining 5 million shares for 12 months.
This primarily equity-based consideration structure further aligns the interests of Terawulf's chief executive officer with the long-term financial and operational goals of the company and its shareholders.
This development positions Terawulf to expand into high-performance computing (HPC) and AI data centers, attracting long-term, high-quality customers. It also supports the company’s commitment to delivering industry-leading economics in mining and data center operations at an industrial scale, leveraging predominantly zero-carbon energy sources.
Following these announcements, the company's shares moved 2.9%, and are now trading at a price of $3.93. If you want to know more, read the company's complete 8-K report here.
