TeraWulf Joins AI Hosting Rallies Amid Rotation into Miners
TeraWulf shares rose 7% on Wednesday as part of a broader trend among Bitcoin miners pivoting to artificial intelligence hosting. The stock's gain paused a drawdown rather than reversing it, with TeraWulf remaining 11% lower over the past month despite today's increase.
Core Scientific and IREN also joined in the rally, rising 7% and 3%, respectively. Meanwhile, the Global X Data Center & Digital Infrastructure ETF (DTCR) increased by 2%, while the SPDR S&P 500 ETF Trust (SPY) rose just 0.3%. The divergence between these asset classes suggests that the buying is concentrated in the miners-to-hosting cohort rather than in established data center landlords.
The rally in TeraWulf, Core Scientific, and IREN shares indicates a rotation into the artificial intelligence trade, which had been sold hard in recent weeks. As a result, investors should exercise caution when allocating to these high-beta names, keeping their positions modest and risk parameters disciplined.