TeraWulf stock rises after securing Anthropic lease for Kentucky data center
Shares of data center operator TeraWulf rallied after Morgan Stanley raised its price target following a 20-year lease agreement with Anthropic. The deal involves TeraWulf's Justified Data campus in Kentucky. Additionally, TeraWulf announced it would sell its majority stake in the Abernathy joint venture to a Fluidstack-led investor group.
Shares of data center operator TeraWulf surged after Morgan Stanley increased its price target, citing a significant 20-year lease agreement with AI company Anthropic. This deal secures Anthropic's presence at TeraWulf's Justified Data campus located in Kentucky, marking a strategic shift for TeraWulf towards more stable AI infrastructure revenue.
Morgan Stanley elevated its price target for TeraWulf from $66 to $72, underscoring the value of long-duration contracted cash flows and attractive revenue per watt generated by this transaction. The firm views the agreement as a strong validation of TeraWulf's strategic direction, particularly its focus on providing power sites for AI compute. In a separate but related development, TeraWulf also announced an agreement to divest its majority stake in the Abernathy joint venture to an investor group spearheaded by Fluidstack.