TeraWulf (NASDAQ:WULF) Signs a 20-Year, US$19 Billion Anthropic AI Lease: From Bitcoin Miner to AI Landlord?

TeraWulf (NASDAQ:WULF) climbed about 5% on Monday, after spiking as much as 16% earlier in the day, following a transformational deal: a 20-year lease with Anthropic, one of the world’s leading artificial intelligence companies, to host its computing at a Kentucky data centre. The lease is expected to generate roughly US$19 billion in revenue over its term. For a company once known purely as a Bitcoin miner, this is a defining moment, and in our view it explains why the market reacted so strongly.

Why a Bitcoin Miner Is Becoming an AI Landlord

To understand why this matters, it helps to know what TeraWulf used to be. It ran computers to mine Bitcoin, a business that is notoriously unpredictable, with profits swinging wildly alongside the crypto price. That made revenue lumpy and hard to forecast, which investors dislike.

The Anthropic deal changes that story completely. Instead of chasing volatile mining rewards, TeraWulf will now rent out purpose-built data-centre space to a major AI customer on a 20-year contract. What this means is a shift from unpredictable income to steady, long-term, contracted revenue, the kind investors are willing to pay a premium for.

It is the same AI-infrastructure land grab that has Google renting extra capacity just to keep up with demand, and TeraWulf has just landed a marquee tenant of its own. The deal is also expected to be backed by investment-grade credit, which makes that US$19 billion far more dependable. We believe this is the clearest sign yet that TeraWulf’s pivot to AI infrastructure is working, and it is a big reason the stock has more than doubled this year.

A Landmark Deal, but the Rewards Come Slowly

Here is the reality check. The headline US$19 billion is real, but it is spread over 20 years, and the money does not start flowing immediately. The Kentucky campus, which will provide about 401 megawatts of computing power, will be built in stages, with the first capacity online only in the second half of 2027 and full capacity by early 2028.

In the meantime, TeraWulf is also raising cash smartly. It sold its majority stake in a separate Texas project for around US$530 million, turning a roughly US$450 million investment into a profit and freeing up money to build more sites it fully owns.

What this shows is a management team focused on projects it controls directly, where it keeps more of the long-term value. The trade-off, though, is that investors must wait a couple of years before this landmark contract meaningfully lifts earnings.

The Investor’s Takeaway for TeraWulf

Our take: this is a genuine turning point, but the stock now carries big expectations. After a run of more than 100% this year, much of the good news may already be in the price, so this is not a low-risk entry. The bull case is simple: TeraWulf has swapped volatile mining income for a 20-year, US$19 billion revenue stream with a top-tier AI tenant and could sign more deals like it.

The key risk is timing and execution. The company must build the Kentucky campus on schedule and on budget, and any construction delays or cost overruns would push back the payoff. There is also the broader question of whether the AI infrastructure boom keeps running; the recent volatility across AI and chip stocks is a reminder that sentiment can turn quickly.

For growth investors comfortable with volatility, the AI-infrastructure story looks compelling, but we would treat sharp pullbacks as better entry points than chasing the spike. More cautious investors may prefer to wait for construction milestones that prove the plan is on track.