TeraWulf Stock Dips 5% Despite Power Contract Expansion

TeraWulf's stock dropped 5% to $14.77 despite securing a power contract that doubles the capacity at its Muskie campus in Kentucky to 1 gigawatt. The decline suggests market skepticism about the timing and regulatory approval needed for the expansion. Kentucky Power finalized an amended agreement with TeraWulf, pulling forward the delivery of the campus’s second phase by a year. Paul Prager, TeraWulf’s CEO, highlighted the expansion as a way to meet strong customer demand, but regulatory approval from the Kentucky Public Service Commission is still required.

Core Scientific and Riot Platforms also saw declines, with Core Scientific down 3% and Riot down 2%. Both companies, like TeraWulf, are pivoting from crypto mining to leasing data center capacity to AI customers. The Global X Data Center & Digital Infrastructure ETF fell 0.3%, while the broader market, represented by the SPDR S&P 500 ETF Trust, rose 0.2%. This divergence indicates a sector-wide pullback in the AI hosting group.

The next key event for TeraWulf will be the Kentucky Public Service Commission’s decision on the amended agreement, which could lock in the doubled capacity and earlier second phase. Investors are advised to monitor regulatory developments and construction updates, as the expansion’s revenue potential remains years away.