Key Highlights
- TeraWulf (WULF) shares climbed 13% following the announcement of acquiring Muskie Data Campus — a 1 gigawatt AI and high-performance computing facility in eastern Kentucky.
- The 285-acre facility will bring online 500 MW in the second half of 2028, followed by another 500 MW phase scheduled for 2030.
- First quarter 2026 revenue reached $34 million, marking a milestone as HPC leasing revenue ($21 million) exceeded Bitcoin mining income ($13 million) for the first time.
- This Kentucky deal pushes TeraWulf’s total planned capacity in the state beyond 2.8 GW across two separate developments.
- Other mining stocks also gained: Hut 8 (HUT) rose 7%, Keel Infrastructure (KEEL) climbed 6.5%, IREN (IREN) advanced 5%, and Cipher Mining (CIFR) increased 5.5%.
TeraWulf (WULF) shares surged 13% during Tuesday’s early session after revealing the acquisition of Muskie Data Campus in eastern Kentucky — a massive hyperscale development designed to support over 1 gigawatt of artificial intelligence and high-performance computing operations in stages.
Investors drove the stock higher in response to both the magnitude of the transaction and its implications for the company’s strategic evolution.
Located on approximately 285 acres within the 1,000-acre EastPark industrial complex, the development already has site preparation underway, with much of the necessary zoning and regulatory approvals reportedly secured.
TeraWulf announced that the initial 500 megawatts should come online during the latter half of 2028. An additional 500 MW expansion is planned for late 2030.
Kentucky Power, operating under American Electric Power, is constructing a 345 kV substation to integrate the facility into the existing 765 kV transmission backbone — the type of robust grid connection that AI data center developers are aggressively pursuing.
Energy Access Becomes the Critical Factor
TeraWulf CEO Paul Prager clearly articulated the market’s current reality: “The defining constraint is no longer computing hardware. It is power, transmission infrastructure, and execution certainty.”
This Kentucky acquisition pushes TeraWulf’s aggregate planned capacity in the state beyond 2.8 GW when combined with its other project.
This development places the company among the leading publicly traded operators in terms of planned AI-compatible power infrastructure.
The purchase was made from Industrial Equity Partners, though specific financial details remain undisclosed.
Business Model Transition Underway
The financial data clearly illustrates the shift. During the first quarter of 2026, TeraWulf posted $34 million in aggregate revenue. HPC leasing operations generated $21 million. Bitcoin mining activities produced under $13 million.
Artificial intelligence computing has now surpassed Bitcoin as the dominant revenue source — occurring before the Kentucky facility contributes any capacity whatsoever.
The quarter did reflect a net loss of $427.6 million, primarily attributed to non-cash items including warrant revaluation adjustments, stock-based compensation expenses, and asset impairment charges. Legacy mining infrastructure continues to impact the balance sheet.
The mining sector broadly moved upward with WULF. Hut 8 advanced 7%, Keel Infrastructure (formerly operating as Bitfarms) increased 6.5%, IREN rose nearly 5%, and Cipher Mining posted a 5.5% gain.
Memory semiconductor producer Micron (MU) also jumped 15% to new record levels above $870 following UBS raising its price target to $1,625, driven by expectations of robust AI-related memory demand. Advanced Micro Devices (AMD) increased 5%.
TeraWulf’s strategic transition isn’t occurring in isolation. Core Scientific liquidated $208.3 million in Bitcoin holdings during Q1 to finance its AI expansion, with colocation services generating $77.5 million compared to mining revenue of $30.1 million. Core has also announced intentions to transform its Pecos, Texas operation into a 1.5 GW AI facility.
Bernstein research has calculated over $90 billion in disclosed AI infrastructure agreements among publicly traded miners, suggesting they collectively control more than 27 GW of planned power capacity.
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