- TeraWulf CEO Paul Prager pushed back on Elon Musk‘s warning of “stranded compute” in half-built data centers
- Prager said TeraWulf secures power, fixed-price construction contracts, and financing before building
- Prager stated, “What others call stranded assets, we may call a development pipeline”
- TeraWulf stock closed at $11.32, a six-month low, down over 60% since June
TeraWulf CEO Paul Prager countered Elon Musk’s prediction of widespread stranded compute in unfinished data centers, arguing his firm’s disciplined strategy prevents such outcomes. Musk wrote on X that the industry will see significant stranded compute in partially complete data centers. Prager responded that Musk may be right about unfinished facilities, but not all developers operate the same way.
TeraWulf secures electricity from investment-grade utilities at locations with demonstrated customer interest before construction begins. The company uses guaranteed-maximum-price contracts to lock in costs and schedules, then signs long-term agreements with clients backed by investment-grade credit. “We may move dirt early, but we don’t build on spec,” Prager wrote.
Some projects stall due to inadequate capital, weak counterparties, or regulatory hurdles, according to Prager. He said experienced infrastructure developers with strong balance sheets can turn those failures into opportunities. “What others call stranded assets, we may call a development pipeline,” he added.
TeraWulf stock closed Friday at $11.32, its lowest weekly close in at least six months and a more than 60% decline since June. The selloff accelerated amid a broad downturn in AI infrastructure stocks and significant hedge fund losses.
TeraWulf expanded its Morgan Stanley-led senior secured revolving credit facility to roughly $400 million from $250 million on Friday. Its subsidiary, WULF Compute, raised $3.2 billion in senior secured notes last year to fund construction at its Lake Mariner campus in New York.
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