TeraWulf Inc (NASDAQ: WULF) shares experienced a notable increase in after-hours trading on Monday following the company’s announcement of significant expansions to its power and infrastructure portfolio. The stock climbed by 10.86%, reaching $14.90 at the time of publication, reflecting strong market interest and investor confidence.
Strategic Acquisitions Enhance Capacity
After the market closed, TeraWulf revealed its acquisition of two strategically located brownfield infrastructure sites: one in Hawesville, Kentucky, and the other in Charles County, Maryland. These acquisitions are projected to add approximately 1.5 gigawatts (GW) of capacity to the company’s existing infrastructure, marking a significant step in its growth strategy. According to Paul Prager, chairman and CEO of TeraWulf, the new sites align with the company’s mission to develop energy-advantaged locations that feature immediate power availability and long-term scalability.
Prager emphasized the importance of these acquisitions, stating, “These acquisitions reflect our strategy of reinvesting in existing energy infrastructure to support grid reliability, long-term economic activity and responsible growth.” He highlighted that the Hawesville site provides immediate access to scalable power, while the Maryland site allows for the expansion of existing generation capabilities to meet increasing demand.
The Kentucky site encompasses over 250 buildable acres for compute capacity and connects to approximately 480 megawatts (MW) of existing power availability. Meanwhile, the Maryland site operates as a grid-connected power generation facility with around 210 MW of operational generation capacity.
Market Performance and Future Outlook
With these acquisitions, TeraWulf’s infrastructure portfolio now totals approximately 2.8 GW across five locations. This expansion is expected to bolster the company’s position in the market and support ongoing operations.
The stock’s performance has been impressive, with TeraWulf shares rising 168.26% over the past 12 months. This upward trend reflects the stock’s resilience and the potential for further growth, particularly as the company continues to enhance its infrastructure and capacity.
Current technical indicators suggest a positive outlook. The stock is trading well above its key moving averages, with the 20-day simple moving average at $13.67, indicating a 7.3% premium. The Relative Strength Index (RSI) stands at 48.94, suggesting a neutral position that may lead to further price action. Additionally, the Moving Average Convergence Divergence (MACD) is positioned above its signal line, indicating bullish momentum.
Traders are advised to monitor the resistance level at $16.50. Should TeraWulf approach this threshold, it could signal a potential breakout or reversal. Conversely, the absence of a defined support level raises the possibility of increased volatility in the event of a significant pullback.
With its strategic acquisitions and robust market performance, TeraWulf continues to position itself as a key player in the energy sector, ready to meet customer demand and contribute positively to broader grid needs.
