TeraWulf shares fell 7% to close at $19.41 on Tuesday after New York Governor Kathy Hochul signed an executive order imposing a one-year pause on new large-scale data center permits. The order temporarily pauses State environmental permit issuance while the Department of Public Service develops a regulatory framework called the Generic Environmental Impact Statement to establish standards for data centers. The state will assess data centers' potential environmental impacts including energy demand, water use and quality, and air quality during the moratorium period, which will be lifted once the framework is finalized.
Governor Hochul also stated she is pursuing legislation to repeal sales tax exemptions for large data centers across the state.
TeraWulf Confirms Lake Mariner and Lake Hawkeye Operations Unaffected
TeraWulf, which has been shifting focus from bitcoin mining to AI and high-performance computing, currently operates the Lake Mariner campus in New York and is planning and developing another site at Lake Hawkeye. Kerri Langlais, chief strategy officer of TeraWulf, stated that the executive order does not change current expectations for Lake Hawkeye, which is a multi-year development, and that the local planning and review process currently underway remains unaffected. Lake Mariner is already operational, and the company's expansion supporting Fluidstack and Google is fully permitted, according to Langlais.
Paul Prager, founder and CEO of TeraWulf, wrote on X that the company is evaluating on-site power for the Lake Hawkeye campus, which aligns directly with the governor's priorities for new generation. Prager stated the executive order is a positive step and that the company likes regulation.
TeraWulf HPC Revenue Reaches $21 Million in Q1, Surpasses Bitcoin Mining
TeraWulf continues to expand its AI and HPC business. Last week, the company signed a 20-year lease agreement with Anthropic at its Justified Data site in Hawesville, Kentucky, which is expected to generate roughly $19 billion in revenue over the term.
In the first quarter, TeraWulf's HPC lease revenue overtook its bitcoin mining business for the first time, reaching $21 million. Total revenue was $34 million for the quarter, roughly flat from $34.4 million a year earlier, while digital asset mining revenue was just under $13 million, according to the company's Q1 financial results.
FAQ
What did New York Governor Kathy Hochul announce on Tuesday regarding data centers?
Governor Kathy Hochul signed an executive order on Tuesday imposing a one-year pause on new large-scale data center permits. The order temporarily pauses State environmental permit issuance while the Department of Public Service develops a regulatory framework called the Generic Environmental Impact Statement to establish standards for data centers.
How did TeraWulf's stock react to the New York data center permit pause?
TeraWulf's Nasdaq-listed shares dropped 7.08% to close at $19.41 on Tuesday following the governor's announcement of the executive order pausing new data center permits.
What is TeraWulf's current revenue breakdown between HPC and bitcoin mining?
In the first quarter, TeraWulf's HPC lease revenue reached $21 million, overtaking its bitcoin mining business for the first time. Digital asset mining revenue was just under $13 million, with total revenue at $34 million for the quarter.
