TLDR
- TeraWulf shares rose 11.86% on Monday, ending the session at $16.41
- Morgan Stanley provided a $500M delayed-draw bridge credit facility to the company
- Capital will finance construction of a data center facility in Hawesville, Kentucky
- The Hawesville location features 480 MW of existing power capacity with expansion potential
- Institutions hold 62.49% of shares, while analysts maintain a Moderate Buy consensus
TeraWulf (WULF) delivered an impressive performance on Monday, climbing 11.86% to finish at $16.41 per share. The rally was triggered by news of a substantial $500 million credit facility from Morgan Stanley, earmarked for developing a data center campus in Hawesville, Kentucky.
The financing arrangement takes the form of a delayed-draw bridge credit facility. This structure allows TeraWulf to access capital incrementally as construction and development milestones are reached at the new site.
Regarding interest rates, TeraWulf has flexibility with two payment structures. The first option is based on SOFR with an additional 2.75% spread. The alternative is a base rate calculated from the highest among: federal funds rate plus 0.50%, Morgan Stanley’s prime lending rate, one-month SOFR, or 1% with an added 1.75% margin.
The Hawesville location represents a significant strategic asset. This former industrial site encompasses 250 acres of developable land, features high-voltage transmission infrastructure, includes an on-site electrical substation, and connects directly to the regional power grid. The facility currently supports 480 MW of power capacity, with staged expansion opportunities planned for the future.
This credit agreement comes on the heels of last month’s disclosure that TeraWulf acquired two separate land parcels—one located in Kentucky and another in Maryland—as components of its comprehensive data center expansion strategy. The Kentucky acquisition corresponds to the Hawesville property now receiving financial backing.
Institutional and Analyst Interest
Beyond the financing announcement, WULF has attracted notable institutional attention recently. Multiple institutional investors established fresh positions during the third quarter of last year.
Fortress Investment Group initiated a position valued at approximately $1.71 million. Azora Capital made the largest move with an $11.89 million new stake. Boothbay Fund Management expanded its holdings by 129.6%. Institutional investors now collectively control 62.49% of outstanding shares.
Company insiders maintain ownership of 19.90% of the stock. On March 4th, Director Michael Bucella purchased an additional 3,171 shares at $15.78 per share, increasing his total position to 270,129 shares.
Analyst Ratings
Wall Street sentiment leans favorable. Morgan Stanley initiated research coverage in February with an Overweight designation and a $37 price target—substantially above current trading levels. Cantor Fitzgerald increased its price objective from $18 to $24. Keefe, Bruyette & Woods made a modest reduction from $24 to $23, while maintaining an Outperform stance.
Rosenblatt Securities raised its target from $20 to $23 alongside a Buy recommendation. Among 14 covering analysts, the consensus stands at Moderate Buy, with a mean price target of $20.62. The rating distribution includes 12 Buy ratings, 1 Hold, and 1 Sell.
WULF began Monday’s trading at $14.67 before the positive momentum pushed shares higher. The stock’s 52-week trading range spans from $2.06 to $18.51, illustrating significant appreciation over the period. The 50-day moving average stands at $14.72, while the 200-day moving average is positioned at $13.35.
TeraWulf maintains a market capitalization near $6.22 billion with a beta coefficient of 3.66—indicating substantial price volatility relative to the broader market. The price-to-earnings ratio registers at -9.00, consistent with the company’s current lack of profitability.
Shares concluded Monday’s trading session at $16.41 following the announcement of the credit facility agreement.
