TeraWulf locks in gigawatt power deals and long‑term AI lease, sparking analyst target hikes
TeraWulf Inc. announced it doubled its contracted capacity at the Muskie Data Campus to 1 GW and secured a 482 MW power agreement for its Justified Data Campus in Kentucky, backed by a 20‑year, roughly 401 MW lease with Anthropic. The company also committed $100 million in winter bill credits and assistance with financing a 760 MW gas plant. The news lifted the stock by 6.27% on Oct 26 and 3.08% on Oct 28, prompting analysts to raise price targets, including Morgan Stanley to $65 and Cantor Fitzgerald to $30.
Why it matters
Analysts say the long‑dated power contracts and AI lease could improve future cash flows, so the stock’s upside potential is re‑priced higher (Morgan Stanley’s $65 target implies about 392% upside). However, the company still reports negative free cash flow and high debt, meaning execution risk remains.
Key facts
- 1The Muskie Data Campus contract was amended to increase capacity from 500 MW to 1 GW, with the second 500 MW phase moved to 2029. stockstotrade.com
- 2TeraWulf will fund $100 million in winter bill credits for local residents and help cover financing costs for Kentucky Power’s 760 MW combined‑cycle plant at Big Sandy. stockstotrade.com
- 3A 482 MW power agreement backs a $4.0–$4.5 billion AI campus and includes a 20‑year, roughly 401 MW IT lease with Anthropic, with extension options up to 10 years. timothysykes.com
- 4Revenue for the last year was about $168.5 million. timothysykes.com
- 5Free cash flow for the latest quarter was roughly -$992 million. timothysykes.com
- 6Morgan Stanley raised its price target to $65, while Cantor Fitzgerald set a target of $30. timothysykes.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.