A major data center player is trading lower today after asking investors for more cash to fuel its growth. On Wednesday, TeraWulf (WULF) saw its shares drop 5.6% following the news of an upsized $900 million stock sale. The company had been on a scorching run, with WULF stock rising more than 50% since late March before today’s pullback. While the company is using the money to build for the future, the immediate market reaction focused on the dilutive impact of the new shares.
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WULX: an alternative to margin or options on WULFCapital Raise Funds Massive Kentucky Data Center Buildout
The firm is moving quickly to turn a former industrial site into a tech hub for artificial intelligence. This project is at the heart of the company’s long-term strategy to move beyond its roots.
The company priced 47.4 million shares at $19 each, which caused the stock to slide about 5.6% in early trading. These funds are set aside to build the Hawesville, Kentucky data center campus, a project estimated to cost between $3 billion and $4 billion. Fluor (FLR) is already handling the early engineering for the site, which has access to 480 megawatts of power.
TeraWulf’s Computing Overtakes Traditional Revenue
The latest financial update shows that TeraWulf’s plan to diversify its income is working. For the first time, one specific area of the business is bringing in more than half of all money earned.
Preliminary results for the first quarter show revenue between $30 million and $35 million. Michael Donovan of Compass Point highlighted that contracted hosting for high-performance computing (HPC) has now officially overtaken income from Bitcoin mining. He believes this is a positive turning point, even though the new share sale makes existing holdings worth a bit less right now.
This move toward steady income helps manage the firm’s finances, especially since it currently holds $3.1 billion in cash against $5.8 billion in total debt.
Digital Mining Firms Are Reinventing Themselves
The move into AI infrastructure is part of a larger trend where digital mining firms are reinventing themselves as tech landlords. This transition is aimed at creating a more predictable and valuable business model.
The bosses are focusing on making steady money through long-term deals with AI companies. This plan works because there is a lot of interest in the company’s power and space, which helps explain why they are taking on so much debt to grow. Because of this high demand, analyst Michael Donovan thinks the stock is a Buy and could jump to $28 once the Kentucky site is done. As the company opens more data centers throughout 2026, it expects to move even further away from mining and toward these reliable hosting fees.
Is WULF Stock a Good Buy?
Turning to TipRanks, TeraWulf has a Strong Buy consensus rating among Wall Street analysts as of April 2026. This rating is based on a unanimous 9 Buy ratings issued within the last three months. The average 12-month WULF stock price target is $26.25, pointing to a 32.7% upside from the current price.
