In Bitcoin news today, TeraWulf just made the most candid statement about Bitcoin mining’s future that any publicly traded miner has ever made with a real estate deal. The Maryland-based Bitcoin mining firm announced Tuesday that it has acquired the Muskie Data Campus, a 285-acre site within eastern Kentucky’s EastPark Industrial Park, and plans to build more than 1 gigawatt of AI data center capacity there.
To put that in plain English: one gigawatt can power roughly 750,000 homes, and TeraWulf is pointing every watt of it at artificial intelligence, not Bitcoin. WULF stock jumped +9% on the announcement, hitting $25.92 intraday, its highest price in 12 months.
Here is the central tension this article unpacks: TeraWulf is not just adding AI as a side hustle. Its Bitcoin mining revenues fell 50% in Q1 2026, while AI compute revenue surged 117% quarter-over-quarter to $21M, accounting for 60% of total revenues.
For the first time ever, AI revenue outpaced Bitcoin mining revenue at TeraWulf. The BTC pivot is no longer a strategy document. It is a financial reality already showing up in the numbers.
Bitcoin News Today: TeraWulf’s Kentucky Pivot and What the Abandonment of BTC Mining Actually Means
TeraWulf’s acquisition of the Muskie Data Campus from Industrial Equity Partners provides a significant development pipeline, with 500 MW of AI data center capacity expected to come online in late 2028 and an additional 500 MW by 2030.
This is huge Bitcoin news today, with Kentucky Power building a 345-kV substation connected to a 765-kV transmission network, a crucial energy infrastructure investment.
TeraWulf CEO Paul Prager emphasizes that power and transmission infrastructure are now the key constraints in the market, leading AI companies to pay premiums for capacity from former Bitcoin miners.
This expansion marks TeraWulf’s second major footprint in Kentucky, alongside its existing 480-megawatt Justified Data campus in Hancock County.
The shift in focus includes a $3.7Bn contract with AI cloud provider FluidStack, potentially growing to $8.7Bn over 20 years, backed by a $1.3Bn commitment from Google for leasing obligations at TeraWulf’s Texas AI campus.
Against that backdrop, the Q1 2026 net loss of $427M, compared to $61.4M in Q1 2025, reflects heavy capital expenditure on the transition rather than an operational collapse. But it is a number that demands attention from anyone holding WULF shares.
$WULF acquired the 1+ GW Muskie Data Campus in Eastern Kentucky, expanding its AI/HPC infrastructure pipeline.
The site is expected to support 500 MW starting in 2H 2028, with another 500 MW targeted for 2H 2030.
The campus includes 285 acres, planned 345 kV substation access,… pic.twitter.com/vvat4CHj7J
— Wall St Engine (@wallstengine) May 26, 2026
Is Bitcoin Mining Dying? Is TeraWulf Just the First Domino?
TeraWulf is not alone in shifting focus; IREN, MARA Holdings, and Hive Digital Technologies are also moving towards AI and high-performance computing.
The 2024 Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC, halving miners’ revenue while electricity costs remained unchanged.
AI hosting offers more stable, contract-based revenue per megawatt, making it a more attractive option compared to volatile mining rewards.
This shift reflects a broader trend of crypto infrastructure companies adapting to external economic pressures. Unlike Bitcoin, AI data centers remain profitable regardless of cryptocurrency price fluctuations, making this shift appealing and sustainable.
Core Scientific has also entered into a significant deal with CoreWeave for AI hosting capacity, illustrating the realignment of energy resources from ASIC mining to GPU use.
While some, like MicroStrategy, continue to focus on Bitcoin accumulation, TeraWulf showcases a different approach by transitioning its infrastructure away from Bitcoin.
(SOURCE: CompaniesMarketCap.com)
Where the Real Opportunity Sits in This Shift
Not only is the TeraWulf story big news in Bitcoin today, but it also highlights a key reality: energy infrastructure is now a critical asset. Control over it, whether for Bitcoin mining or AI data centers, provides significant leverage.
Early-stage projects at the intersection of blockchain and AI computing are drawing serious investment as this convergence is still in its early stages.
TeraWulf’s $1-gigawatt investment in Kentucky signals smart capital’s recognition of the value of energy infrastructure. The future of Bitcoin mining will depend on whether BTC economics can compete with the reliable revenue from AI hosting.
It is seen as a competition they currently cannot win. Keep an eye on the completion of the Abernathy, Texas, AI campus in late 2026 and on TeraWulf’s Q2 revenue for insights into this shifting landscape.
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The post Bitcoin News Today: Is Mining Dying as TeraWulf Abandons Miners appeared first on 99Bitcoins.
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