Why Is TeraWulf Stock Surging On Thursday?

TeraWulf Inc. (NASDAQ: WULF ) shares rose Thursday after Morgan Stanley reiterated its Overweight rating and raised its price target from $66.50 to $72, extending gains fueled by the company’s recently announced AI infrastructure deal with Anthropic.

Earlier this week, TeraWulf signed a 20-year lease for its Justified Data campus in Kentucky, a project that will provide 401 megawatts of AI computing capacity and is expected to generate about $19 billion in contracted lease revenue, with operations beginning in late 2027.

Separately, the company is selling its 50.1% stake in the Abernathy Joint Venture, monetizing an investment of about $450 million at a premium.

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These pressures included disappointing preliminary second quarter results from Samsung, reports of Chinese startup DeepSeek developing its own AI inference chip, and news of Meta Platforms Inc. planning a competing cloud infrastructure business.

A minor decline in the cryptocurrency market had also weighed on the company’s legacy Bitcoin (CRYPTO: BTC) mining business.

Short Interest Data from the last reporting period shows that short interest in TeraWulf decreased slightly, falling from 108.78 million to 108.65 million.

This drop left 25.82% of the company’s publicly available shares sold short.

Based on the recent average daily trading volume of 26.35 million shares, it would take short sellers approximately 4.12 days to cover and close out their positions.

WULF Stock Price Activity: TeraWulf shares were up 2.43% at $23.39 at the time of publication on Thursday, according to Pro data.

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