TeraWulf Leases Data Center to Anthropic for $19 Billion

TeraWulf, a company that has transitioned from bitcoin mining to hosting AI computing operations, announced a significant deal on Monday. The firm signed a 20-year lease with Anthropic, an AI company, to host its data center in Kentucky, sending TeraWulf's shares up as much as 19% before settling at a gain of about 4%. The lease covers the Justified Data campus in Hawesville, Kentucky, which will provide approximately 401 megawatts of computing capacity over time.

The deal is expected to generate $19 billion in contracted revenue for TeraWulf over its initial term. This figure is more than the company's current market value, which stands at around $12 billion. The stock has seen a significant increase this year, rising by over 80%.

TeraWulf began as a bitcoin miner but shifted its focus to AI computing due to the volatile economics of mining. The company still operates a bitcoin business but now sees itself as an AI landlord, with the Anthropic lease being one of the key factors defining its value.