TeraWulf stock jumps after Anthropic signs $19B AI lease

TeraWulf shares climbed over 17% in premarket trading after Anthropic agreed to a 20-year lease for a large-scale AI data center in Kentucky that TeraWulf estimates will produce roughly $19 billion in revenue over the lease term.

Anthropic will lease a campus located about an hour southwest of Louisville. TeraWulf said the site is planned to provide about 400 megawatts of capacity, with initial power deliveries targeted for the second half of 2027 and the campus reaching full 401 MW by early 2028.

Separately, TeraWulf reached a definitive agreement to sell its 50.1% stake in the Abernathy Joint Venture to an investor group led by joint-venture partner Fluidstack. The company said the transaction monetizes roughly a $450 million investment at a premium to invested capital and will free funds to develop wholly owned AI infrastructure projects.

The company has shifted its business mix from Bitcoin mining to hosting high-performance computing and AI workloads after weaker Bitcoin mining economics. In the first quarter, TeraWulf reported $21 million in HPC lease revenue, compared with no AI lease revenue a year earlier. Overall revenue was $34 million, down from $34.4 million a year earlier. The company reported a loss of $1.01 per share for the quarter, versus a loss of $0.16 a year earlier; analysts had expected about a $0.20 loss.

Several Wall Street firms initiated or raised coverage recently. Citi started coverage with a Buy rating and a $36 price target, noting constrained supply for large-scale AI deployments and saying TeraWulf’s approach converts industrial sites with existing grid access into hyperscale facilities. Citi estimated the company could develop between 250 MW and 500 MW of new data center capacity annually under its framework while flagging execution and funding risks. Bank of America began coverage with a Buy rating and a $34 target, citing upcoming catalysts including completion of the Lake Mariner project and an anticipated customer announcement for the Kentucky campus. Bernstein opened coverage with an Outperform rating and a $46 target, and Citizens left a Market Outperform rating with a $32 target.

TeraWulf has been strengthening its financing for expansion. The company completed a $3.2 billion high-yield bond sale to fund the Lake Mariner campus in New York. TeraWulf said the financing will be guaranteed by Google once the facility becomes operational.

Shares of TeraWulf have risen more than 66% year to date and more than 340% over the past 12 months as the company shifts from Bitcoin mining toward AI infrastructure.