Why TeraWulf (WULF) Is Down 13.2% After Signing a 20-Year AI Data Campus Lease with Anthropic - And What's Next

• In early July 2026, TeraWulf announced that its subsidiary Raylan Data LLC entered a 20-year Justified Data Campus lease with Anthropic, committing approximately 401 MW of critical IT load at its Hawesville, Kentucky data center campus and targeting about US$19.00 billions in contracted revenue over the initial term.

• The agreement signals a shift in TeraWulf's business mix, as it leans into long-duration, high-performance computing infrastructure for artificial intelligence alongside selling non-core assets.

• We'll examine how this long-term Anthropic lease, and the move toward AI-focused recurring revenue, reshapes TeraWulf's investment narrative.

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What Is TeraWulf's Investment Narrative?

To own TeraWulf today, you need to believe the company can successfully pivot from loss‑making bitcoin mining into a capital‑intensive, AI infrastructure platform with long‑dated, contracted cash flows. The new 20‑year Anthropic lease, with about US$19.00 billions in contracted revenue backed by investment‑grade credit, materially tilts the story toward recurring, high‑performance computing income and away from more volatile digital asset exposure. In the near term, the key catalysts shift to execution milestones: securing and building out the roughly 401 MW at Hawesville on time and budget, closing the US$530 million Abernathy sale, and managing dilution after recent equity raises. At the same time, the biggest risks now look less about pure bitcoin prices and more about construction, funding and delivering on very large AI commitments without further eroding an already weak balance sheet.

However, the size of these AI commitments introduces new execution and funding risks that investors should be aware of.The analysis detailed in our TeraWulf valuation report hints at an inflated share price compared to its estimated value.

Exploring Other Perspectives

Five Simply Wall St Community fair value estimates span roughly US$18 to US$57.04, reflecting wide dispersion in expectations. Against that backdrop, TeraWulf's huge Anthropic lease and ongoing losses may pull opinions even further apart, so it is worth weighing several viewpoints before deciding how this evolving AI story fits into your portfolio.

Explore 5 other fair value estimates on TeraWulf - why the stock might be worth over 2x more than the current price!

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