TeraWulf Inc. (NASDAQ: WULF) is experiencing a notable upswing this morning, fueled by increasing demand in the high-performance computing sector and positive analyst sentiment. The company's strategic positioning in the burgeoning artificial intelligence (AI) infrastructure market has garnered significant attention, leading to upgraded price targets and increased investor confidence.
The TeraWulf stock price has hit a new 52 week high today at $12.22, before settling slightly lower into the first hour of trading.
Rosenblatt Securities raised its price target on TeraWulf to $14.50 from $12, reiterating a Buy rating. The firm pointed to the significant benefits accruing to bitcoin miners transitioning into high-performance compute hosting providers, driven by the accelerating demand from AI applications. Rosenblatt believes that the company's perceived smaller power pipeline is a disclosure issue rather than a fundamental weakness, anticipating proactive capacity additions ahead of current expectations. Northland Capital also increased its price target to $12.00 from $10.00, maintaining an Outperform rating, highlighting TeraWulf's 200 MW deal with Fluidstack and partnership with Google as a transformative development. Google's $1.8 billion backstop was specifically noted as a strong vote of confidence from a major AI player, enhancing TeraWulf's credit profile and facilitating access to low-cost capital for expansion.
TeraWulf's subsidiary, Akela Data LLC, recently entered into a lease agreement with Fluidstack USA I Inc. for a new data center building at its Lake Mariner campus in New York. This expansion will offer over 160 megawatts of IT load for high-performance computing, with operations slated to commence in late 2026. Google's agreement to backstop Fluidstack's obligations under the lease, along with warrants to acquire shares in TeraWulf, underscores the strategic alignment between the two companies. The expansion increases TeraWulf's contracted capacity with Fluidstack to approximately 360 megawatts, solidifying Lake Mariner's position as a leading HPC campus in the U.S. Furthermore, TeraWulf secured an 80-year ground lease for 183 acres at the Cayuga site in Lansing, New York, enabling the development of up to 400 MW of digital infrastructure capacity, including 138 MW of predominantly zero-carbon power expected to be operational by 2026, featuring a planned 67 MW solar installation and an 800 MWh battery storage system.
Google's increased stake in TeraWulf, accompanied by up to $1.4 billion in additional backstop, bringing its total to about $3.2 billion, has further bolstered market confidence. This increased Google's stake in TeraWulf to 14% from 8% and enabled the tech giant to purchase approximately 32.5 million shares of the company's stock. To further finance its expansion, TeraWulf announced a $400 million private offering of convertible senior notes due 2031.
The stock is 2.88% higher today at $11.80 at the time of writing.
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