TeraWulf Inc (NASDAQ:WULF) experienced a significant uptick in its stock price during after-hours trading on Monday, following the company’s announcement of a strategic expansion in its power and infrastructure portfolio. Shares of TeraWulf rose by 10.86%, reaching $14.90 shortly after the market closed, reflecting strong investor interest in the company’s latest developments.
Acquisition of New Infrastructure Sites
In a notable move, TeraWulf revealed the acquisition of two brownfield infrastructure sites located in Hawesville, Kentucky, and Charles County, Maryland. These sites are projected to add approximately 1.5 gigawatts (GW) of capacity to the company’s existing operations. The acquisitions are in line with TeraWulf’s strategy to develop energy-advantaged locations that offer immediate power availability and potential for long-term scalability.
Paul Prager, chairman and CEO of TeraWulf, commented on the significance 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 emphasized that the Hawesville site provides immediate access to scalable power, while the Maryland location enhances existing generation capabilities to meet increasing load demands.
The Kentucky site encompasses over 250 buildable acres for compute capacity and offers approximately 480 megawatts (MW) of existing power availability. Meanwhile, the Maryland site functions as a grid-connected power generation facility with around 210 MW of operational generation capacity. Following these acquisitions, TeraWulf’s infrastructure portfolio now totals approximately 2.8 GW across five locations.
Stock Performance and Market Outlook
The positive market response to TeraWulf’s announcement reflects a broader bullish momentum for the stock. Currently, TeraWulf trades significantly above its key moving averages, with the 20-day simple moving average positioned at $13.67, indicating a 7.3% premium over this average. This trend suggests a favorable short-term outlook for the stock.
The relative strength index (RSI) is currently at 48.94, indicating a neutral market position—neither overbought nor oversold. This balance may set the stage for further price movements in either direction. Additionally, the moving average convergence divergence (MACD) indicator is above its signal line, reinforcing the stock’s bullish trajectory.
Traders are advised to monitor the resistance level at $16.50. Approaching this level could signal a potential breakout or reversal in stock trends. Conversely, the absence of a defined support level raises the possibility of increased volatility in the event of a significant pullback.
Over the past year, TeraWulf has demonstrated remarkable resilience, with its stock surging by 168.26%. This impressive growth highlights the company’s ability to adapt and thrive in a competitive market, positioning it well for future opportunities and challenges.
