Key Highlights
- Shares of TeraWulf (WULF) climbed more than 7% following the announcement of a 20-year partnership with Anthropic valued at approximately $19 billion in total contracted revenue.
- The agreement encompasses 401 megawatts of critical IT infrastructure at TeraWulf’s Justified Data facility located in Hawesville, Kentucky.
- First-phase capacity deployment is anticipated during the latter half of 2027, with complete buildout expected by early 2028.
- Analysts at Compass Point upgraded their WULF price target from $28 to $40, reaffirming their Buy recommendation.
- Separately, TeraWulf revealed plans to divest its 50.1% ownership in the Abernathy Joint Venture, unlocking approximately $450 million in capital.
On July 6, 2026, TeraWulf (WULF) shares experienced a significant rally following the company’s revelation of a transformative partnership with Anthropic. Trading around $22.74 during midday hours, the stock posted gains of approximately 7.3%, after beginning the session at $24.21 and touching an intraday peak of $25.04.
The partnership centers on a two-decade lease arrangement at TeraWulf’s Justified Data facility in Hawesville, Kentucky. Over the initial contract period, the deal is projected to deliver approximately $19 billion in guaranteed revenue.
The facility will accommodate roughly 401 megawatts of critical IT infrastructure. First-stage capacity is slated for activation during the second half of 2027, with complete operational capacity projected for early 2028.
Based on the contract terms, annual lease revenue averages around $950 million, translating to approximately $2.37 million per megawatt annually. Anthropic’s financial commitments are anticipated to carry investment-grade credit backing.
This partnership elevates TeraWulf’s overall contracted critical IT capacity from 522 MW to approximately 839 MW.
Analyst Upgrades: Compass Point Sets $40 Target
Following the announcement, Compass Point swiftly elevated its price objective for WULF from $28 to $40, maintaining its Buy stance. At the time of the analyst note, shares were trading at $22.21, valuing TeraWulf at an $11 billion market capitalization.
Additional Wall Street analysts have expressed optimism as well. BofA Securities launched coverage with a Buy recommendation, while Bernstein initiated with an Outperform rating, highlighting a robust pipeline valued at roughly $24 billion. Citizens maintained its Market Outperform rating, noting advancements at the Lake Mariner operation.
Chief Executive Paul Prager stated the Anthropic partnership “validates our strategy and establishes a long-duration revenue stream with one of the world’s leading AI companies.”
Abernathy Joint Venture Divestiture to Unlock $450M
In conjunction with the Anthropic announcement, TeraWulf disclosed its intention to sell its 50.1% stake in the Abernathy Joint Venture to an investor consortium headed by Fluidstack. The divestiture is projected to recover roughly $450 million of invested capital.
TeraWulf indicated it will reallocate these proceeds toward fully owned AI infrastructure developments, aligning with its strategic shift away from cryptocurrency mining operations.
The organization has additionally been evaluating leveraged loan opportunities to finance AI infrastructure growth, following a $3.2 billion high-yield bond offering that received support from Google.
Although WULF experienced a 17% decline during the week preceding this announcement, the stock had generated a remarkable 303% return over the previous twelve months.
The Justified Data campus features an energy-efficient design with a power usage effectiveness ratio of approximately 1.20, supporting 401 MW of critical IT load from 480 MW of total power capacity. Company leadership projects an 85% net operating income margin and capital expenditures ranging from $10 million to $12 million per megawatt, with final costs contingent upon the specific hardware configuration deployed at the location.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
