In pre-market trading, TeraWulf's shares surged over 16% after the AI firm Anthropic signed a 20-year lease for the company's Kentucky data center.
Anthropic will use a portion of TeraWulf's data center in Hawesville, Kentucky, roughly a one-hour drive southwest of Louisville. The entire facility has around 400 megawatts of capacity.
CEO Paul Prager said, "The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies."
TeraWulf also unloaded its 50% ownership in a 168-megawatt data center in Abernathy, Texas, with the buyer being an investor group headed by Fluidstack.
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The company's stock is up more than 80% for the year so far. TeraWulf originally operated as a Bitcoin mining company, but has since redirected its efforts towards developing AI data center infrastructure.
The big question is whether TeraWulf can build the Kentucky facility on time and on budget. Construction delays could push the first power date beyond 2027. Another risk: AI demand could slow if the broader economy cools.
Still, the Anthropic lease provides a rare level of certainty.
The news sent TeraWulf's stock soaring in pre-market trading, with shares up over 16% at the open. The company's year-to-date gain now exceeds 80%, reflecting investor optimism about its pivot from Bitcoin mining to AI infrastructure. Analysts note that the long-term lease with Anthropic provides revenue visibility that crypto miners rarely achieve, reducing the volatility that has historically weighed on the stock.
Background on TeraWulf's Transformation
As the crypto market experienced volatility and increasing competition, the company began repositioning itself in the high-growth AI data center space. The pivot involves repurposing existing sites and developing new ones with the electrical capacity and cooling infrastructure that AI training and inference workloads demand. By securing a long-term tenant like Anthropic - creator of the Claude AI model - TeraWulf locks in predictable revenue while reducing exposure to crypto price swings. The deal also signals increasing demand for specialized AI infrastructure, particularly in regions with available power and favorable development conditions.
Significance of the Deal
For TeraWulf, this lease provides a stable, long-term cash flow that reduces reliance on volatile cryptocurrency markets. The 20-year commitment also strengthens the company's balance sheet and positions it to attract additional high‑profile clients for future projects.
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