TeraWulf Surges 7% as Digital Power Stocks Rebound Amid AI Hosting Shift

TeraWulf's stock price surged 7% on October 2, 2026, as part of a broader rebound in digital power stocks. The company's shift from cryptocurrency mining to artificial intelligence hosting is a key factor in this trend.

TeraWulf has secured a long-term lease with Anthropic, a privately held AI developer, for its campus in Kentucky. This agreement provides a revenue anchor for the company and supports its pivot to AI and high-performance computing hosting.

However, Rothschild Redburn initiated coverage of TeraWulf stock at Neutral, citing capital intensity and execution risk. The company's financing plans for its Kentucky expansion may shape its stock price in the coming weeks.

Other digital power stocks, such as IREN and Cipher Digital, also saw gains, with IREN up 6% and Cipher Digital rising 4%. The CoinShares Bitcoin Mining and Digital Power ETF climbed 5%, indicating broad buying activity in the sector.