Digital Power Sector Rebound Lifts TeraWulf, IREN, and Cipher Digital Stocks

The digital power sector is experiencing a rebound, with several stocks rising sharply. TeraWulf (NASDAQ:WULF) is leading the charge, with its shares increasing 7% to $15.94 in morning trading. This follows a broader trend in the sector, where former crypto mining companies are converting their power capacity into AI data centers.

One key factor driving this trend is the growing demand for artificial intelligence infrastructure. Companies like IREN (NASDAQ:IREN) and Cipher Digital (NASDAQ:CIFR) are also benefiting from this shift, with their shares rising 6% and 4%, respectively. The CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) is also up 5% to $46.67, indicating a positive trend across the sector.

TeraWulf's success can be attributed to a long-term lease with Anthropic, a privately held AI developer, which provides contracted computing capacity at the company's campus in Kentucky. This agreement supports TeraWulf's transition from crypto mining to AI and high-performance computing hosting. However, the company's financing plans for its Kentucky expansion may shape its stock's performance going forward.