TeraWulf Stock Rides AI Power Wave After Kentucky Approval
TeraWulf Inc.'s stock has been on the rise after its expansion into AI power and data infrastructure. The company's recent approval from Kentucky regulators for up to 482 MW of power at the Justified Data Campus is a significant catalyst behind this increase in value.
The deal, which includes a 20-year lease with Anthropic for roughly 401 MW at TeraWulf's repurposed aluminum smelter site, is tagged to an estimated $19B of contracted revenue. This long-term cash flow potential has institutions taking notice, with William Blair initiating TeraWulf at Outperform with a $31 base-case value and an average Street target closer to $36.
Despite the optimism surrounding WULF's AI power build-out, traders should remain cautious due to the company's high burn rate and negative returns on equity and assets. However, as former bitcoin miners retool their power-rich sites into AI data centers, TeraWulf is now a poster child for this trend.