TeraWulf Locks In 20-Year Anthropic Lease Worth $19B, Exits Texas JV

TeraWulf Inc. (NASDAQ: WULF) WULF has signed a 20-year lease with Anthropic for a purpose-built AI campus in Hawesville, Kentucky. The company expects the contract to generate roughly $19 billion in revenue over its initial term. On the same day, TeraWulf also agreed to sell its entire 50.1% stake in a Texas data center joint venture, a move that frees up capital to redeploy into wholly owned infrastructure.

Investors responded quickly. Shares jumped as much as 17% on the news, snapping a seven-session slide that had erased roughly a quarter of the stock’s value.

Inside the Kentucky Campus

Anthropic will occupy TeraWulf’s Justified Data campus, a site engineered to support approximately 401 megawatts of critical IT load. TeraWulf plans to build the campus in phases: initial capacity should come online in the second half of 2027, and full buildout should follow by early 2028. Notably, the company says an investment-grade credit backs the lease.

Beyond the immediate contract, the structure leaves room to grow. In fact, TeraWulf has framed the Hawesville site not as a one-off deal but as a template for additional AI campuses.

Cashing Out of Abernathy

At the same time, TeraWulf agreed to sell its 50.1% interest in the Abernathy Joint Venture to an investor group led by Fluidstack, its partner in the project. The buyers will pay roughly $530 million in three installments through April 2027 — a clear premium on TeraWulf’s original investment of roughly $450 million. Meanwhile, Fluidstack will continue to lead development of the 168-megawatt Abernathy campus in Texas.

CEO Paul Prager ties both transactions to a single thesis: own the critical infrastructure, hold the customer relationship directly, and control the operating economics. Selling a minority-governed JV stake to fund wholly owned development follows that logic cleanly.

Why It Matters for Small-Cap Investors

Here’s the part that turns heads: the Anthropic contract value exceeds TeraWulf’s entire market capitalization. That rare setup reprices how the market values the underlying asset base. It also caps a broader identity shift — in Q1 2026, HPC hosting revenue overtook mining income for the first time, reaching roughly $21 million.

That shift extends well beyond TeraWulf. Across the sector, Bitcoin miners are converting power-dense sites and grid interconnects into AI hosting capacity, effectively trading crypto’s volatility for long-duration contracted cash flow. TeraWulf’s deal simply represents the largest and cleanest expression of that trade so far.

The Caveat

Still, contracted revenue is not realized revenue. The $19 billion figure depends on construction milestones landing on schedule through 2028, and the capital intensity of a 401 MW buildout runs substantial. Accordingly, investors should watch phase-in timing, financing structure, and how quickly Abernathy proceeds convert into new owned capacity. TeraWulf posts filings and updates through its investor relations site.