Shares of TeraWulf (WULF) jumped more than 30% Thursday after the company announced two AI infrastructure deals worth $3.7 billion with Fluidstack. Despite the surge, WULF stock is still down 3.53% year-to-date.
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What Does TeraWulf Do?
TeraWulf is a U.S. digital infrastructure company that focuses on sustainable Bitcoin mining and high-performance computing (HPC). Its data centers run on more than 90% clean energy, mainly from nuclear, hydro, and solar power.
Meanwhile, Fluidstack is a leading AI cloud platform that builds and runs HPC clusters for major companies.
More Details About the Deals
Under the 10-year agreements, TeraWulf will provide more than 200 megawatts (MW) of high-density computing power at its Lake Mariner campus in Western New York. These contracts are projected to bring in approximately $3.7 billion in revenue over the first ten years. The contracts also include two five-year extension options, which could raise total revenue to around $8.7 billion if exercised.
The first phase, with around 40 megawatts of critical IT load, is expected to start operating in the first half of 2026, with full capacity coming online by the end of the year.
To help fund the project, Google (GOOGL) will guarantee $1.8 billion of Fluidstack’s lease payments, making it easier to secure project financing. In return, Google will get warrants to buy about 41 million shares of TeraWulf, giving it roughly an 8% ownership stake. TeraWulf also plans to raise additional funds from the capital markets to support part of the project.
TeraWulf Locks in 80-Year Lease
In a separate announcement, the company revealed a long-term ground lease at its Cayuga site in Lansing, New York, to expand its high-performance computing and AI data centers. The 80-year lease spans 183 acres and gives TeraWulf exclusive rights to develop up to 400 MW of digital infrastructure, with 138 MW of mostly zero-carbon power expected to come online in 2026.
Is TeraWulf a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WULF stock based on five Buys and two Holds assigned in the past three months. Furthermore, the average TeraWulf stock price target of $6.29 per share implies a 10% downside risk.
