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