TeraWulf signs $19 billion data center lease with Anthropic

TeraWulf, a Bitcoin mining and AI data center infrastructure provider, signed a 20-year lease with Anthropic for a 401 MW data center in Kentucky, expected to generate $19 billion in contracted revenue. Simultaneously, TeraWulf sold its 50.1% stake in the Abernathy joint venture for $530 million.

The market responded positively initially, with TeraWulf's stock surging 10% on the news. However, it later pulled back 8.87% as investors focused on the company's AI buildout and funding plans. The AI sector, particularly data center infrastructure providers, is likely to see increased scrutiny and valuation repricing as more deals like this come to light.

Investors should watch TeraWulf's earnings on August 15, as well as any updates on its AI orderbook, currently at $27 billion across multiple clients. Additionally, the finalization of credit support for the Anthropic lease could drive further market reaction.