Key Highlights
- WULF stock rallied 11.86% on Monday, ending the session at $16.41
- Morgan Stanley provided a $500M delayed-draw bridge credit facility
- Capital will finance a new data center development in Hawesville, Kentucky
- The Kentucky location features 480 MW of existing power capacity with expansion potential
- Institutions hold 62.49% of shares, with analysts rating the stock Moderate Buy
Shares of TeraWulf (WULF) posted impressive gains on Monday, climbing 11.86% to settle at $16.41. The rally came after the company announced it secured a $500 million credit facility from Morgan Stanley to finance data center construction in Hawesville, Kentucky.
The financing arrangement takes the form of a delayed-draw bridge credit agreement. This structure allows TeraWulf to access capital incrementally as construction and development needs arise at the new facility.
TeraWulf has flexibility in repayment through two distinct options. The first option uses SOFR as a base rate with an additional 2.75% margin. The alternative is a base rate calculated from the maximum of: federal funds rate plus 0.50%, Morgan Stanley’s prime rate, one-month SOFR, or 1% — all with an added 1.75% margin.
The Hawesville location represents a significant strategic asset. Situated on a former industrial property, the site encompasses 250 acres suitable for development, equipped with high-voltage transmission infrastructure, an on-site substation, and direct regional grid connectivity. The facility currently supports 480 MW of power capacity, with plans for staged expansion.
This financing announcement comes roughly one month after TeraWulf revealed the acquisition of two land parcels — one located in Kentucky and another in Maryland — as components of its comprehensive data center expansion strategy. The Kentucky acquisition corresponds to the Hawesville location now receiving financing support.
Institutional Backing and Analyst Coverage
Beyond the financing news, WULF has attracted notable institutional interest. Multiple institutional investors established fresh positions during Q3 of the previous year.
Fortress Investment Group initiated a new position valued at approximately $1.71 million. Azora Capital made the largest entry with an $11.89 million new stake. Boothbay Fund Management increased its holdings by 129.6%. Institutional investors collectively own 62.49% of outstanding shares.
Company insiders maintain ownership of 19.90%. Director Michael Bucella purchased 3,171 additional shares on March 4th at $15.78 per share, expanding his total position to 270,129 shares.
Wall Street’s Perspective
The analyst community maintains a generally bullish stance. Morgan Stanley initiated coverage in February with an Overweight recommendation and a $37 price target — substantially above current trading levels. Cantor Fitzgerald elevated its price objective from $18 to $24. Keefe, Bruyette & Woods made a modest reduction from $24 to $23 while maintaining an Outperform rating.
Rosenblatt Securities increased its price target from $20 to $23 with a Buy recommendation. Among 14 analysts covering the stock, the consensus stands at Moderate Buy, with an average price target of $20.62. The distribution includes 12 Buy ratings, 1 Hold, and 1 Sell.
WULF began Monday’s trading at $14.67 before gaining momentum throughout the session. The stock has traded within a 52-week range of $2.06 to $18.51, illustrating substantial appreciation over the period. Technical indicators show the 50-day moving average at $14.72, while the 200-day moving average stands at $13.35.
The company maintains a market capitalization near $6.22 billion with a beta of 3.66 — indicating significant volatility relative to the broader market. The price-to-earnings ratio currently registers at -9.00, reflecting ongoing losses.
Shares concluded Monday’s trading at $16.41 on the heels of the credit agreement disclosure.
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