TeraWulf (WULF) is in focus after disclosing a 20 year lease with Anthropic for about 401 MW at its Justified Data campus, tied to roughly $19b in contracted lease revenue.

The Anthropic lease news arrives after a mixed run for TeraWulf, with the share price down 25.11% over the past 30 days but still showing a 38.62% year to date share price return and a very large 3 year total shareholder return of 571.48%.

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For TeraWulf, the Anthropic deal, the heavy selloff and the very strong multi year return tell very different stories. Is the recent drop more about sentiment and sector worries than about what this business could be worth based on the numbers?

Most Popular Narrative: 51% Undervalued

The most followed narrative values TeraWulf at $36.32 a share versus the last close at $17.66. That gap rests on some very specific growth and margin assumptions.

Long-term partnerships and investments from marquee players (Google's $1.8B lease backstop and equity stake) signal institutional validation, enhance creditworthiness, and are likely to lower WULF's future cost of capital, directly supporting margin expansion and accelerated infrastructure growth.

Curious what sits behind that fair value for TeraWulf? The narrative leans on rapid revenue expansion, improving margins and a future earnings multiple usually reserved for market leaders.

Result: Fair Value of $36.32 (UNDERVALUED)

However, TeraWulf’s story still carries real execution risk, including heavy capital needs for AI buildouts and dependence on newer tenants whose long term strength remains uncertain.

Next Steps

With sentiment clearly split on TeraWulf, this is the moment to move quickly, review both sides of the story, and weigh the 1 key reward and 5 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.