TeraWulf (NASDAQ: WULF) shares advanced 12.8% in Wednesday’s regular session, rebounding after two consecutive days of losses as the market continued to digest the company’s newly announced long-term partnership with AI company Anthropic.
The agreement gives Anthropic access to about 401 megawatts of critical IT capacity at TeraWulf’s Justified Data campus in Hawesville, Kentucky, under a 20-year lease. The contract is projected to produce roughly $19 billion in revenue over its initial term and includes two optional five-year extensions. Capacity is expected to come online in stages beginning in late 2027, with the project reaching full operating capacity in early 2028.
The announcement also prompted a wave of positive analyst revisions, reinforcing confidence in the company’s AI infrastructure strategy. Morgan Stanley increased its price target to $72 from $66.50 while keeping an “Overweight” rating. Needham raised its target to $33 from $28 with a “Buy” rating, Compass Point lifted its target to $40 from $28 (Buy), Bernstein maintained its “Outperform” rating with a $36 target, Rosenblatt increased its target to $30 from $27 (Buy), and BofA Securities initiated coverage with a “Buy” rating and a $34 price target, pointing to TeraWulf’s evolution from a Bitcoin miner into an AI-focused digital infrastructure provider.
In another strategic move, TeraWulf is monetizing its 50.1% stake in the Abernathy joint venture through a roughly $530 million transaction with a Fluidstack-led investor group. The company plans to use the proceeds, payable over three installments, to accelerate its wholly owned AI infrastructure projects, thereby further strengthening its expansion plans.
Speaking about the Anthropic partnership, Chief Executive Officer Paul Prager said demand for high-performance computing and AI infrastructure is expected to broaden across industries over time, describing the agreement as an early step in what the company sees as a much larger long-term growth opportunity.
TeraWulf (NASDAQ: WULF) shares closed at $22.83, up 373.65% over the past year.
