TeraWulf Inc (NASDAQ: WULF) saw its shares increase significantly in after-hours trading on Monday, following the announcement of two major acquisitions aimed at expanding its power and infrastructure portfolio. The stock surged by 10.86%, reaching a price of $14.90 at the time of publication.
Strategic Acquisitions to Boost Capacity
The company revealed it has acquired two strategically positioned brownfield infrastructure sites in Hawesville, Kentucky, and Charles County, Maryland. These sites are projected to add approximately 1.5 gigawatts (GW) of capacity to TeraWulf’s infrastructure, reinforcing its strategy to develop energy-advantaged locations that offer immediate power availability and long-term scalability to meet customer demand and enhance grid reliability.
Paul Prager, chairman and CEO of TeraWulf, stated, “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 location provides immediate access to scalable power, while the Maryland site will allow for expanded generation capabilities to meet increasing load demand.
The site in Kentucky features more than 250 buildable acres designated for compute capacity, along with approximately 480 megawatts (MW) of existing power availability. Meanwhile, the Maryland site is a grid-connected power generation facility with around 210 MW of operational generation capacity. With these additions, TeraWulf’s infrastructure portfolio now totals approximately 2.8 GW across five locations.
Market Response and Stock Performance
Following the announcement, TeraWulf’s stock exhibited strong bullish momentum, trading well above its key moving averages. As of the latest figures, the 20-day simple moving average (SMA) stands at $13.67, with the stock trading 7.3% above this benchmark. The relative strength index (RSI) is currently at 48.94, indicating a neutral market position, suggesting that the stock is neither overbought nor oversold. This could pave the way for further price movements in either direction.
Additionally, the moving average convergence divergence (MACD) indicator remains above its signal line, pointing to bullish momentum. Investors should be cautious of the resistance level at $16.50, as approaching this could indicate a potential breakout or reversal. Conversely, the absence of a defined support level raises concerns that a significant pullback could lead to increased volatility.
Over the past year, TeraWulf has demonstrated impressive growth, with the stock surging 168.26%, reflecting resilience and potential for continued upward movement in the market.
As TeraWulf continues to expand its infrastructure, the developments in Kentucky and Maryland may play a crucial role in the company’s ability to meet future energy demands and maintain its growth trajectory.
