Shares of TeraWulf rose Monday after the Bitcoin miner turned data-center operator announced a 20-year lease agreement with artificial-intelligence start-up Anthropic.
TeraWulf stock advanced 9.7% to $24.24, rebounding after ending Thursday down 10%. If the move holds through Monday's closing bell, the stock would also snap a seven-day losing streak.
TeraWulf on Monday said it has entered into a 20-year lease agreement with Anthropic for a "purpose-built AI infrastructure campus" at TeraWulf's Kentucky location. The company expects the agreement to generate around $19 billion of contracted revenue over "the initial lease term."
TeraWulf said it expects initial capacity to come online in the second half of 2027 with the full campus operational in 2028.
The company also announced it has agreed to sell its 50.1% ownership in a joint venture established in 2025 to develop a 168 megawatts AI data center campus in Abernathy, Texas. TeraWulf invested $450 million in the join venture.
"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," CEO Paul Prager said in a media release, adding that the deal creates a framework for future expansion.
Clear Street analysts Brian Dobson and Greg Pendy on Monday wrote that TeraWulf's two-pronged announcement shows that "momentum" is building for the company.
"Another major lease reinforces our view that WULF's pipeline is worth substantially more than today's valuation implies," Dobson wrote.
The firm reiterated its Buy rating and its price target of $36 on the stock. That price target implies 54% upside from current trading levels.
Write to Kit Norton at kit.norton@barrons.com
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July 06, 2026 13:22 ET (17:22 GMT)
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