TLDR
- TeraWulf shares climbed 11.86% on Monday, ending the session at $16.41
- A $500M delayed-draw bridge credit facility was arranged through Morgan Stanley
- Capital will finance construction of a data center facility in Hawesville, Kentucky
- The Kentucky location provides 480 MW of existing power capacity with expansion potential
- Institutional investors hold 62.49% of shares, while analysts rate the stock a Moderate Buy
Shares of TeraWulf (WULF) rallied on Monday, gaining 11.86% to settle at $16.41. The surge came after the company announced it had secured $500 million in financing from Morgan Stanley to develop a data center in Hawesville, Kentucky.
The financing arrangement takes the form of a delayed-draw bridge credit facility. This structure allows TeraWulf to access capital incrementally as construction and development milestones are reached at the new site.
Under the credit agreement’s terms, TeraWulf has flexibility in repayment structure. The first option uses SOFR plus a 2.75% spread. The alternative base rate option references the greater of: the federal funds rate plus 0.50%, Morgan Stanley’s prime lending rate, one-month SOFR, or 1% — then adds a 1.75% margin on top.
The Hawesville property represents a significant strategic asset. The former industrial site offers 250 acres suitable for development, existing high-voltage transmission infrastructure, an operational substation on-site, and direct connectivity to the regional power grid. The facility currently provides 480 MW of power capacity, with plans for staged expansion over time.
This credit facility announcement comes roughly a month after TeraWulf revealed it had acquired two separate land parcels — one located in Kentucky and another in Maryland — as components of its larger data center expansion strategy. The Kentucky property referenced in that earlier announcement is the Hawesville location now receiving the financing.
Institutional and Analyst Interest
Beyond the financing announcement, WULF has attracted notable institutional interest recently. Multiple institutional investors established fresh positions during the third quarter of last year.
Fortress Investment Group initiated a position valued at approximately $1.71 million. Azora Capital made the largest move with an $11.89 million new stake. Boothbay Fund Management expanded its holdings by 129.6%. Institutional investors collectively control 62.49% of outstanding shares.
Company insiders maintain ownership of 19.90%. Director Michael Bucella purchased 3,171 additional shares on March 4th at a price of $15.78 per share, increasing his total position to 270,129 shares.
Analyst Ratings
Wall Street sentiment remains largely optimistic. Morgan Stanley initiated coverage in February with an Overweight designation and a $37 price target — substantially above current trading levels. Cantor Fitzgerald increased its price objective from $18 to $24. Keefe, Bruyette & Woods made a minor adjustment downward, moving from $24 to $23, while maintaining an Outperform stance.
Rosenblatt Securities lifted its target from $20 to $23 with a Buy recommendation. Among 14 covering analysts, the consensus stands at Moderate Buy, with a mean price target of $20.62. The rating distribution shows 12 Buy ratings, 1 Hold rating, and 1 Sell rating.
WULF began Monday’s trading at $14.67 before advancing through the session. The stock has traded between $2.06 and $18.51 over the past 52 weeks, illustrating its substantial appreciation. The 50-day moving average currently stands at $14.72, while the 200-day moving average is positioned at $13.35.
The company maintains a market capitalization of approximately $6.22 billion and exhibits a beta of 3.66 — indicating significant volatility relative to the broader market. The price-to-earnings ratio registers at -9.00, reflecting the company’s current lack of profitability.
Shares concluded Monday’s trading session at $16.41 in the wake of the credit facility disclosure.
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