Terawulf (WULF) stock pushed higher on July 6 after the digital infrastructure operator announced a landmark 20-year lease agreement with the artificial intelligence (AI) research lab, Anthropic.
Valued at a whopping $19 billion in contracted revenue, this multi-year deal solidifies WULF’s pivot from pure-play BTC mining into AI and high-performance computing (HPC).
Despite today’s rally, Terawulf shares are currently down about 25% versus their recent high.
Significance of Anthropic Deal for Terawulf Stock
Under the announced agreement, Anthropic will occupy a purpose-built AI infrastructure campus at Terawulf’s facility in Hawesville, Kentucky.
Broadly known as Justified Data, this site was acquired by Terawulf in February and is designed to support a staggering 401 megawatts (MW) of critical IT load.
Development is scheduled to roll out in multiple phases, with initial capacity set to go online and deliver power in the second half of 2027, before hitting full 401 MW capacity by early 2028.
WULF stock soared on Monday primarily because this long-term commitment from an elite large language model (LLM) developer guarantees reliable, structural cash flows backed by investment-grade credit.
Why Else Did WULF Shares Rally on Monday?
Investors are bullish on the Anthropic deal because it alters Terawulf stock’s risk profile — trading volatile crypto mining rewards for stable, predictable artificial intelligence infrastructure revenue.
Also on Monday, the firm intelligently optimization-proofed its balance sheet by selling its 50.1% stake in the Abernathy joint venture in Texas to a Fluidstack-led investor group.
This monetization strategy frees up capital, returning WULF’s $450 million investment at a healthy premium.
By shedding the joint venture, Terawulf secures immediate liquidity to fund wholly owned AI infrastructure projects, giving it absolute operational control over future expansion while avoiding dilution that typically plagues scaling infrastructure firms.
Wall Street Remains Bullish on Terawulf
While WULF shares are already up some 70% versus the start of this year, Wall Street firms remain convinced that they will rip higher from here over the next 12 months.
According to Barchart, the consensus rating on Terawulf sits at “Strong Buy” currently, with the mean price target of $35.58 indicating potential upside of nearly 60% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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