New York, May 26, 2026, 17:03 (EDT)
TeraWulf Inc. climbed roughly 10% to $25.18 on Tuesday, putting its valuation close to $10.7 billion, after saying it plans an Eastern Kentucky campus designed to bring in over 1 gigawatt of data-center capacity.
TeraWulf is looking to win over investors as it shifts away from bitcoin mining into high-performance computing, or HPC, which runs AI and big workloads on clusters of servers. In HPC, power rights and transmission links are just as important as chips.
The company said it has about 285 acres of owned and controlled land at the Muskie Data Campus. The first 500 megawatts are planned to come online in the second half of 2028. Another 500 megawatts may follow in the second half of 2030. Kentucky Power, part of AEP, is handling construction of a 345-kilovolt substation hooked to a 765-kilovolt transmission network.
TeraWulf jumped past the indexes Tuesday, the first U.S. session since the Memorial Day break. The Nasdaq Composite ended up 1.2% for a new record, while the S&P 500 gained 0.6%. But TeraWulf pulled far ahead.
TeraWulf Inc. Chairman and CEO Paul Prager called the deal a power-infrastructure move, saying, “the defining constraint” is now “power, transmission infrastructure, and execution certainty.” TeraWulf Inc.
TeraWulf’s filing said the acquisition closed as of May 22, without needing third-party consents or regulatory approvals. TeraWulf said Muskie will be the company’s second big digital-infrastructure campus in Kentucky, in addition to its 480-megawatt Justified Data campus in Hancock County.
Crypto miners pivoting to AI lifted shares across the group. Hut 8 was up 7%, IREN tacked on almost 5% and Cipher Mining added 5.5% Tuesday, with investors looking for firms with existing power and room to grow datacenters.
Jefferies analyst Jonathan Petersen and his team said last week that “one of the largest bottlenecks is interconnected power,” Investopedia reported. The firm initiated coverage of TeraWulf, Cipher and Hut 8 as bitcoin miners getting into data center development. Investopedia
TeraWulf posted first-quarter revenue of $34.0 million, with $21.0 million coming from HPC lease revenue. The company said it ended the quarter holding roughly $3.1 billion in cash and restricted cash. CFO Patrick Fleury said the period showed “a more stable, contracted revenue model.” TeraWulf Inc.
The rally puts pressure on Muskie and TeraWulf. Muskie won’t deliver major power for years. TeraWulf posted a Q1 net loss of $427.7 million as costs and expenses more than doubled from a year ago. Company filings point to risks with finding HPC customers, finishing campuses, raising growth capital, getting permits, and securing affordable power.
That shifts the focus from the land buy to TeraWulf’s ability to get lease deals in place at the power plant ahead of the first Muskie phase. Investors so far saw the Kentucky deal as just another sign of the scramble for AI power capacity.
