TeraWulf Surges 7% as Digital Power Sector Rebounds with AI Focus

The digital power sector is experiencing a rebound, with several stocks rising due to a shift in focus from cryptocurrency mining to artificial intelligence data centers. TeraWulf (NASDAQ:WULF) is leading the charge, up 7% to $15.94 in morning trading. The company has a long-term lease with Anthropic, a privately held AI developer, for contracted computing capacity at its Kentucky campus. This agreement supports TeraWulf's move from crypto mining to AI and high-performance computing hosting.

The rebound is not limited to TeraWulf, with IREN (NASDAQ:IREN) up 6% to $43.20 and Cipher Digital (NASDAQ:CIFR) up 4% to $16.10. The CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) is also up 5% to $46.67. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.95% to $771.27, providing a positive broad market background.

The sector-wide buying activity is likely driven by a view on the whole group, rather than individual company performance. The shared shift in focus from crypto mining to AI data centers is a key factor, with companies like IREN, Cipher Digital, and TeraWulf leasing power capacity to AI developers and cloud providers. TeraWulf's Kentucky lease with Anthropic gives the company a long-dated revenue anchor, but also commits it to a heavy construction program with uncertain financing.