Key Takeaways
- TeraWulf (WULF) shares climbed more than 7% following confirmation of a two-decade lease agreement with Anthropic generating approximately $19 billion in total contracted revenue.
- The arrangement encompasses 401 megawatts of critical IT infrastructure at the Justified Data facility located in Hawesville, Kentucky.
- First-phase capacity deployment is anticipated during the latter half of 2027, with complete buildout scheduled for early 2028.
- Compass Point upgraded its WULF price objective from $28 to $40 while reaffirming its Buy recommendation.
- Separately, TeraWulf disclosed plans to divest its majority 50.1% position in the Abernathy Joint Venture, unlocking approximately $450 million in capital.
Shares of TeraWulf (WULF) experienced significant upward momentum on July 6, 2026, following the company’s disclosure of a transformative agreement with Anthropic. By midday trading, the stock was changing hands near $22.74, representing a gain of approximately 7.3%, after launching the session at $24.21 and touching an intraday peak of $25.04.
The agreement centers on a 20-year lease arrangement at TeraWulf’s Justified Data facility in Hawesville, Kentucky. Over the initial term, the contract is projected to produce approximately $19 billion in guaranteed revenue streams.
The Kentucky campus will accommodate roughly 401 megawatts of critical IT infrastructure. Management expects the initial phase to become operational during the second half of 2027, with the facility reaching maximum capacity by the opening months of 2028.
Based on the contract terms, average yearly lease revenue is estimated at around $950 million, translating to approximately $2.37 million per megawatt annually. Anthropic’s contractual payment commitments are anticipated to carry investment-grade credit backing.
This partnership expands TeraWulf’s aggregate contracted critical IT infrastructure from 522 MW to approximately 839 MW.
Analyst Upgrades WULF Target to $40
Compass Point moved swiftly following the announcement, elevating its price objective for WULF from $28 to $40 while maintaining its Buy recommendation. At the time of the analyst note, shares were trading at $22.21, assigning TeraWulf a market capitalization of $11 billion.
Additional Wall Street analysts have expressed optimism as well. BofA Securities launched coverage with a Buy designation, while Bernstein began tracking the stock with an Outperform stance, highlighting a robust order pipeline valued near $24 billion. Citizens maintained its Market Outperform rating, emphasizing advancement at the Lake Mariner site.
Chief Executive Paul Prager remarked that the Anthropic agreement “validates our strategy and establishes a long-duration revenue stream with one of the world’s leading AI companies.”
Company Exits Abernathy Venture for $450 Million
In conjunction with the Anthropic announcement, TeraWulf revealed it is offloading its majority 50.1% stake in the Abernathy Joint Venture to an investor consortium headed by Fluidstack. The divestiture is expected to convert roughly $450 million of deployed capital into liquidity.
TeraWulf indicated its intention to channel these proceeds toward wholly controlled AI infrastructure developments, aligning with its strategic transition away from cryptocurrency mining operations.
The organization has additionally been investigating opportunities in the leveraged loan marketplace to finance AI infrastructure growth, coming on the heels of a $3.2 billion high-yield debt offering that received backing from Google.
Notwithstanding a 17% decline during the week leading up to the announcement, WULF had generated a remarkable 303% return over the preceding twelve-month period.
The facility features an engineered power usage effectiveness ratio of approximately 1.20, supporting 401 MW of critical IT capacity against 480 MW of total power availability. Company leadership projects an 85% net operating income margin alongside capital expenditure requirements ranging from $10 million to $12 million per megawatt, with ultimate costs contingent upon the specific computing hardware configuration chosen for deployment.
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