Key Takeaways:
Bitcoin miners are being revalued as AI infrastructure providers after TeraWulf locked in a $19 billion lease with Anthropic, sending the sector up as much as 13% in a single session.
TeraWulf Inc. (NASDAQ: WULF) surged more than 17% on July 6 after announcing a 20-year lease with Anthropic for a purpose-built AI campus at its Justified Data site in Hawesville, Kentucky. The facility will support about 401 megawatts of critical IT load, with initial capacity expected online in the second half of 2027 and full ramp-up by early 2028. The deal is projected to generate roughly $19 billion in contracted revenue over the initial term, according to the company.
"The timing of today's announcement reflects the completion of final documentation and customary transaction processes, and we are proud to announce this landmark partnership with Anthropic," TeraWulf Chairman and Chief Executive Officer Paul Prager said in a statement. The company also sold its 50.1% stake in the Abernathy Joint Venture to a Fluidstack-led investor group, monetizing roughly $450 million at a premium to invested capital.
The rally extended across the mining sector. IREN Ltd. climbed more than 13%, Hut 8 Corp. gained about 10%, and Cipher Mining Inc. rose 11% on the day, according to market data. Compass Point raised its price target on WULF to $40 from $28 while maintaining a buy rating. Bank of America holds a buy rating with a $34 price objective. WULF has gained about 95% year to date, far outpacing peers such as Cipher Mining (+44%) and Applied Digital (+37%).
The deal marks a structural shift in how Bitcoin miners are valued. TeraWulf's first-quarter 2026 results already showed the pivot in motion: high-performance computing lease revenue reached $21 million, surpassing digital asset mining revenue of $13 million. Total platform contracted revenue now exceeds $13 billion before the Anthropic agreement. The transaction underscores a broader industry realignment where legacy mining sites — with pre-existing grid connections, substations, and power contracts — are being repurposed for AI workloads that demand always-on compute capacity.
Power availability has become the primary bottleneck for AI expansion, outpacing even GPU supply constraints. North American data center capacity additions through 2030 may reach about 66 gigawatts, yet demand from AI training and inference workloads continues to accelerate. Bitcoin miners with secured power assets are uniquely positioned to bridge this gap, converting flexible mining loads into high-reliability HPC facilities.
The Kentucky campus will be developed in phases, with the first phase coming online in the second half of 2027 and full 401 MW capacity expected by early 2028. TeraWulf expects the lease to be supported by an investment-grade credit rating, a rare distinction among mining-turned-AI companies. Proceeds from the Abernathy sale will fund wholly owned pipeline development, giving the company full operational and strategic control over future projects.
For investors, the pivot offers exposure to AI infrastructure growth with less reliance on Bitcoin price volatility. Risks include construction delays, power cost fluctuations, and the execution challenges of scaling HPC operations. TeraWulf's strong liquidity position — over $3 billion in cash and equivalents prior to the Abernathy monetization — provides a buffer against these headwinds. The company's 2-plus-gigawatt development pipeline positions it for multi-year expansion beyond the Anthropic commitment.
This article is for informational purposes only and does not constitute investment advice.
