TeraWulf Stock Spikes Following Massive 20 Year Data Center Agreement With Anthropic

Key Stats for TeraWulf Stock

• Price change for TeraWulf stock in Last 1 Year: 363%
• $WULF Stock Price as of Jul. 6: $22
• 52-Week High: $30
• $WULF Stock Price Target: $37

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What Happened?

TeraWulf (WULF) stock jumped more than 4% after the company announced a massive 20-year lease agreement with AI company Anthropic. The deal covers a data center in Hawesville, Kentucky, about an hour southwest of Louisville.

The numbers here are big. The site will support around 401 megawatts of critical IT load, with first power expected in the second half of 2027 and full capacity online by early 2028.

Over the initial lease term, this single agreement is expected to bring in about $19 billion in revenue. That works out to roughly $950 million per year, or about $2.37 million per megawatt.

CEO Paul Prager called it a turning point for the company, saying the Anthropic lease confirms TeraWulf’s strategy and locks in a long-term revenue stream with one of the world’s top AI companies.

This deal also pushes TeraWulf’s total contracted critical IT capacity up to about 839 megawatts, a big jump from the 522 megawatts it had before.

Anthropic’s payments are expected to be backed by investment-grade credit, which gives investors more confidence the money will actually show up over the life of the lease.

In a related move, TeraWulf also sold its 50% stake in a 168-megawatt data center project in Abernathy, Texas, to a group led by Fluidstack.

Wall Street is reacting fast. Compass Point raised its price target on TeraWulf stock to $40 from $28 and kept its Buy rating. That said, some valuation models suggest the stock may already be trading above fair value, which analysts peg closer to $18.

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What the Market Is Telling Us About TeraWulf Stock

TeraWulf started out as a bitcoin mining company, but it’s been shifting hard toward AI data center infrastructure, and today’s news shows that bet is paying off.

Landing a long-term, credit-backed lease with a major AI player like Anthropic is exactly the kind of deal investors have been hoping to see as the company completes this transition.

The market’s enthusiastic reaction also reflects how tight the AI infrastructure market has become. Power, not computer chips, is increasingly the real bottleneck for AI growth, and companies like TeraWulf that can secure and build out power capacity are becoming more valuable as a result.

Even after a rough week that saw the stock pull back 17%, today’s jump is a reminder of just how volatile, and how rewarding, this AI infrastructure trade has been for TeraWulf stockholders over the past year.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!