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    TeraWulf (WULF) Is Up 22.2% After Securing $1.3 Billion For AI Data Center Expansion

    Simply Wall St·01/06/2026 08:21:08
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    • TeraWulf recently secured regulatory approval for industrial use of its Cayuga Lake site in Lansing, New York, and, through its joint venture with FluidStack, raised US$1.30 billion in secured financing for the Abernathy AI data center project.
    • At the same time, substantial restricted-stock awards to senior executives highlight management’s alignment with the company’s push into high-performance computing and data-center hosting alongside its existing bitcoin mining operations.
    • We’ll now explore how this rapid build-out of AI-focused infrastructure, underpinned by new financing, could influence TeraWulf’s existing investment narrative.

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    TeraWulf Investment Narrative Recap

    To own TeraWulf, you need to believe its pivot from pure bitcoin mining to contracted AI and HPC hosting can ultimately justify heavy upfront spending and current losses. The fresh US$1.30 billion secured for Abernathy strengthens the near term growth catalyst of rapid capacity build out, but also amplifies the key risk around higher leverage, execution timelines and future free cash flow if AI infrastructure demand or tenant performance disappoints.

    Among recent developments, the restricted stock awards granted to senior executives are particularly relevant, because they tie management directly to the success of this AI and data center expansion alongside legacy mining. For shareholders, that equity alignment sits against a backdrop of increasing capital intensity and already volatile returns, making it important to track how effectively new projects like Abernathy translate into recurring, contracted cash flows over time.

    Yet beneath the AI growth story, investors should also be aware of how expanding long term obligations could affect...

    Read the full narrative on TeraWulf (it's free!)

    TeraWulf's narrative projects $920.8 million revenue and $157.9 million earnings by 2028.

    Uncover how TeraWulf's forecasts yield a $21.44 fair value, a 57% upside to its current price.

    Exploring Other Perspectives

    WULF 1-Year Stock Price Chart
    WULF 1-Year Stock Price Chart

    Nine members of the Simply Wall St Community currently value TeraWulf between US$4.92 and US$26 per share, highlighting very different expectations. Set against this spread, the company’s rising leverage and dependence on large, long term AI hosting agreements could have meaningful implications for how those forecasts play out.

    Explore 9 other fair value estimates on TeraWulf - why the stock might be worth less than half the current price!

    Build Your Own TeraWulf Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.