TeraWulf shares surged by 17% on Monday after the company secured a 20-year lease with Anthropic, signaling a strategic pivot towards AI infrastructure.
The agreement is projected to yield approximately $19 billion in revenue for TeraWulf, covering a 401 MW AI campus located in Hawesville, Kentucky. This shift aligns the company with evolving market demands, moving away from its previous focus on Bitcoin mining.
Details of the Lease Agreement
Specifically, TeraWulf's lease with Anthropic grants the AI company space at the Justified Data site, with construction phases slated to conclude by early 2028. Initial services are expected to commence in the second half of 2027. The setup is designed to handle significant AI training workloads, reflecting the growing reliance on AI technologies.
The partnership with Anthropic, known for its Claude AI models, marks a significant endorsement for TeraWulf's new direction. As noted by Constellation Research, this long-term commitment from a key industry player provides a solid foundation for TeraWulf’s income over the next two decades.
Stock Performance
After the announcement, TeraWulf's stock (NASDAQ: WULF) traded at approximately $24.14, up from a previous closing price of $21.18. The stock's intraday trading ranged between $23.38 and $25.15. Since the beginning of the year, WULF has shown substantial growth, increasing over 117%.
Additional Corporate Moves
On the same day as the lease announcement, TeraWulf disclosed the sale of its 50.1% stake in an AI data center joint venture located in Abernathy, Texas. Led by Fluidstack, the investment group acquiring the stake is expected to provide TeraWulf with a premium on its initial investment of approximately $450 million. The company plans to reinvest these funds into properties it fully owns and controls, enhancing its long-term revenue capabilities.
