TeraWulf hits over three-year high on expanded cloud deal, boosted Google stake

** Shares of data center operator TeraWulf WULF.O up 17.1% to $10.50, highest since Mar 2022, early Mon after announcing expanded deal with AI cloud platform Fluidstack

** Easton, Maryland-based WULF early Mon said Fluidstack exercised its option to expand at co's Lake Mariner site in New York in agreement that represents $6.7 bln in contracted revenue, with potential to reach $16 bln with lease extensions

** Google GOOGL.O to provide incremental $1.4 bln backstop, which boosts its pro forma equity ownership stake in WULF to approx 14%

** On Thurs, WULF shares surged ~60% to close at $8.71, after co announced two 10-yr high-performance computing colocation agreements with Fluidstack, and Google's $1.8 bln backstop and 8% stake in WULF

** WULF early Mon also announced $400 mln 6-yr convertible bond offering to finance portion of its data center expansion and for general purposes

** It intends to use some net proceeds to pay for capped calls, derivative transactions employed to mitigate potential dilution

** Through Fri close, WULF had ~$3.5 bln market cap, per LSEG data

** Needham on Mon raised its PT on WULF by $5 to $11

** 11 of 12 analysts rate the stock "strong buy" or "buy", 1 has "hold" and median PT is $11.50, up from $7 a month ago - LSEG