Shares of TeraWulf Inc. (WULF) surged over 6% in pre-market trading on Tuesday after the company announced a new long-term ground lease agreement for its Lake Mariner facility. The agreement replaces the original 10-year lease and extends the term to 35 years, with an option to extend for an additional 45 years.

The new lease significantly expands TeraWulf's land area at Lake Mariner from 107 acres to 157 acres, increasing the facility's infrastructure capacity to 750 MW. This positions the company to attract high-quality customers and support its growth plans, particularly in the high-performance computing (HPC) and AI data center segments.

Notably, the new lease comes with no escalation in annual lease payments on a per-acre basis compared to the original agreement. Additionally, the primarily equity-based consideration structure further aligns the interests of TeraWulf's CEO with the company's long-term goals and shareholders. Investors appear to view the deal favorably, as it facilitates TeraWulf's expansion into emerging areas like HPC and AI, diversifying its revenue streams beyond Bitcoin mining.