TeraWulf Shares Drop 7% Despite Company Saying New York Order Won’t Disrupt Expansion

• TeraWulf said New York’s temporary data center permitting pause will not affect Lake Mariner operations or planned Lake Hawkeye development projects.
• Company executives welcomed clearer regulations while confirming existing permits remain valid, despite investors pushing TeraWulf shares lower following the announcement.
• Artificial intelligence and high-performance computing revenue surpassed bitcoin mining, supported by Anthropic’s long-term lease agreement and diversified business strategy.

 

TeraWulf said its development plans remain unchanged despite a New York executive order that sent its shares down more than 7%. The company stated that its existing facilities and planned projects are not affected by the state’s temporary pause on new environmental permits for large-scale data centers.

Investor sentiment weakened after New York Governor Kathy Hochul signed an executive order directing the state to stop issuing new environmental permits for certain large data center projects for up to one year.

During that period, the Department of Public Service will prepare a Generic Environmental Impact Statement to establish statewide standards for future data center developments. The review will examine factors including electricity demand, water consumption, water quality, and air quality.

Additionally, Hochul said she is pursuing separate legislation that would eliminate sales tax exemptions currently available to large data centers across New York. The announcement weighed on TeraWulf’s stock, with shares closing 7.08% lower at $19.41 on Tuesday.

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TeraWulf Says Existing Facilities and Future Projects Remain Unaffected

Despite the market reaction, TeraWulf executives stressed that the executive order does not alter the company’s development timeline. Kerri Langlais, TeraWulf’s chief strategy officer, said the Lake Hawkeye campus remains in a multi-year development phase. She explained that the local planning and review process already underway is separate from the state’s temporary permitting pause.

Moreover, Langlais said the company’s Lake Mariner campus is already operational, while its expansion supporting Fluidstack and Google has secured all required permits. She also welcomed the state’s effort to establish a clearer regulatory framework for future data center projects.

Meanwhile, TeraWulf founder and Chief Executive Officer Paul Prager also addressed the announcement on X. According to Prager, the company is evaluating on-site power generation for the Lake Hawkeye campus, a move that aligns with Governor Hochul’s emphasis on adding new electricity generation.

Prager added that TeraWulf supports a well-defined regulatory framework and described the executive order as a positive step for the industry. His comments reflected management’s confidence that the company’s long-term strategy remains intact despite the market’s immediate response.

AI and HPC Business Becomes a Larger Growth Driver

Beyond its New York operations, TeraWulf has accelerated its expansion into artificial intelligence and high-performance computing infrastructure, reducing its dependence on bitcoin mining.

That strategy gained further momentum last week when the company signed a 20-year lease agreement with Anthropic at its Justified Data site in Hawesville, Kentucky. TeraWulf expects the agreement to generate approximately $19 billion in revenue over its full term.

Furthermore, the company’s latest financial results highlighted the changing composition of its business. During the first quarter, high-performance computing lease revenue reached $21 million, exceeding bitcoin mining revenue for the first time.

Total quarterly revenue reached $34 million, remaining nearly unchanged from $34.4 million reported during the same period last year. Meanwhile, digital asset mining generated just under $13 million, reflecting the company’s growing reliance on AI and HPC infrastructure.

Conclusion

Although New York’s temporary permitting pause triggered a decline in TeraWulf’s share price, company executives maintain that their existing operations and planned developments remain unaffected. At the same time, the firm’s growing AI and high-performance computing business continues to reshape its revenue mix and long-term strategy.

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