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Ahmed Barakat
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TeraWulf is signed a 20-year contract with Anthropic for 401 MW AI data in the middle of the campus at its location Data is justified in Hawesville, Kentucky, closing about $19 billion in contract money, a figure that exceeds the entire bitcoin mine currently with a market cap of about $12 billion.
The deal forces a straightforward question on the table: at what point does WULF stop trading as a BTC project and start pricing as a REIT?
Shares jumped as much as 19% intraday on July 6 before settling for a 4% gain at the close. The rally from intraday to close is worth noting, it shows that the market is underestimating the risk of the people who may be included even if the price is at the price of the head, which is the right way to think about the many years to come.
TeraWulf CEO Paul Prager told CNBC: “Anthropic lending validates our strategy and establishes a long-term investment strategy with one of the world’s leading AI companies.” The Wall Street Journal reported that the agreement is supported by Anthropic’s strong investment bank, which is very important, that the money that is based on the savings paper is very different from the payment that depends on the hashrate.
What Kentucky Does With Anthropic Essentially Dedicated to TeraWulf
The Kentucky campus data center will provide approximately 401 MW of critical IT assets to Anthropic’s Claude AI construction in phases, with initial capacity expected online in H2 2027 with full construction targeted for early 2028.
The Justified Data facility is located on the former Century Aluminum site, giving TeraWulf a large existing capacity with approximately 480 MW of available capacity and room for expansion. That kind of shovel-ready electronics is something AI labs can’t replicate in their time.
At a typical industry average of $8–$10 million per MW for HPC-grade infrastructure, the construction of 401 MW represents a significant demand of between $3.2 billion and $4 billion.
This number is not in the headline, the amount of 19 billion dollars that works with, but it is the change that will determine whether the agreement creates or destroys the value of the value in the next 24 months. TeraWulf has not yet disclosed how its funds operate in Kentucky.
Anthropic isn’t the only AI lab making this strong move on power. Reports say the company has locked up about 3.5 GW of AI compute power across the board, and Benzinga says IREN has also signed on with Anthropic, making TeraWulf part of a growing group of former Bitcoin miners now serving as dedicated AI hosts.
The The cycle of AI Infrastructure driving these commitments shows no sign of abating.
Capital Recycling and Abernathy’s Exit
In line with Anthropic’s announcement, TeraWulf confirmed that it will sell its 50.1% interest in the Abernathy Joint Venture, a 168 MW AI data project in Texas scheduled for 2025, to an investment group led by Fluidstack.
The company said the transaction would generate approximately $450 million in cash proceeds, according to Reuters. This is no small feat: it means that TeraWulf is already realizing the benefits of its crypto mining pivot before it even has a single rack in Kentucky.
The logic of Abernathy’s exit is pure. Instead of holding a small stake in businesses that it doesn’t control, TeraWulf is reinvesting in the sectors that have the full potential of the portfolio.
CoinShares says that up to 70% of the recorded income of miners can come from AI hosting for those who secure long-term contracts, a change that changes the entire calculation process for companies like TeraWulf.
Only the 20-year loan term is more important than the dollar amount. For investors who used WULF as a fixed bet on the price of bitcoin, this time represents a real change in the existing business.
A long-term, stable architecture creates a completely different profile from mining, which is predictable, stable, and aligned with the user of the data instead of the developer. That’s it miners like TeraWulf are making clear decisions selling away is: direct exposure to BTC price changes and hashprice pressure following the decline.
