TeraWulf Inc (NASDAQ:WULF) shares are pulling back Tuesday, even as two Wall Street analysts raised their price targets following the company’s $19 billion Anthropic data center lease. Here’s what you should know.
- TeraWulf stock is feeling bearish pressure. Why is WULF stock dropping?
TeraWulf Signs Long-Term Lease With Anthropic
TeraWulf announced a 20-year lease agreement with Anthropic at its Justified Data campus in Hawesville, Kentucky, expected to generate around $19 billion in contracted revenue, alongside the sale of its 50.1% stake in the Abernathy joint venture to a Fluidstack-led group. The news comes after a rough stretch for HPC infrastructure stocks broadly, with WULF shares having sold off sharply the prior week amid speculation around Meta’s next data center move.
Needham Calls Anthropic Deal Evidence Demand Remains Robust
Needham analyst John Todaro on Tuesday raised his price target to $33 from $28 while reiterating a Buy rating, pointing to the Anthropic agreement as evidence that appetite for HPC capacity is holding up well across the sector. He also framed the Abernathy sale as a simplifying move, freeing management to concentrate on its own leasing pipeline rather than managing joint-venture complexity.
Todaro added that TeraWulf is working with Google, Amazon and Nvidia on a potential credit backstop for the lease, which is a change from its previous agreement that carried penny warrant.
Rosenblatt Cites Confidence In Power Expertise And Site Strategy
Rosenblatt Securities analyst Chris Brendler raised his price target to $30 from $27, also reiterating Buy on Tuesday, and pointed to the Anthropic deal as proof that TeraWulf’s approach — buying sites cheap, building them out, then signing anchor tenants — is working. He noted the company now counts Core42, Fluidstack/Google and Anthropic among its HPC tenants, broadening its customer base beyond a single counterparty.
The market’s attention should now shift away from questioning whether TeraWulf can land blue-chip tenants at all, toward watching how fast the company puts its Abernathy proceeds to work on its next project, according to the Rosenblatt analyst.
“We see WULF’s new contract with Anthropic as a significant positive. In our view, this deal validates the company’s brownfield development strategy and increases confidence in its ability to attract top-tier hyperscaler tenants,” Brendler wrote in the note.
WULF Shares Are Sliding
WULF Price Action: TeraWulf shares were down 8.10% at $20.41 at the time of publication on Tuesday, according to Benzinga Pro.
Image: Piotr Swat/Shutterstock.com
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