TeraWulf Inc. (WULF) shares are charging higher Monday, riding a wave of sector-wide optimism and a blockbuster contract from a rival that's got investors rethinking the AI data center story.

The stock was up 4.21% at $18.93 in afternoon trading, clawing back some of the losses from last week when New York Governor Kathy Hochul signed an executive order imposing a statewide moratorium on new hyperscale data centers. That news had sent TeraWulf and other crypto-mining stocks into a tailspin, but Monday's action suggests the market is looking past the regulatory headwind—at least for now.

The broader market is lending a hand, too. The Nasdaq is up 0.70%, the S&P 500 has gained 0.12%, and the tech sector is leading with a 0.8% advance. It's the kind of risk-on environment that crypto-linked stocks thrive in.

Bitcoin Stabilizes Above $65K

Speaking of crypto, Bitcoin (BTC) is trading at $65,414.38, up 1.21% over the past 24 hours and 5.21% over the past week, according to CoinMarketCap. That's a welcome reprieve after mid-July saw crypto-linked companies get hammered by falling Bitcoin prices amid escalating U.S.-Iran tensions. For now, the largest cryptocurrency is holding its ground, providing a stable backdrop for stocks like TeraWulf that are tied to the digital asset ecosystem.

Peer Contract Validates Valuation

The real catalyst, though, is coming from a competitor. Hut 8 Corp. (HUT) announced Monday that it has fully commercialized its 1-gigawatt Beacon Point campus by signing a second 352-megawatt IT lease. The 15-year triple net lease is valued at a staggering $9.8 billion over its base term.

"We took this greenfield site from first lease to full commercialization in just months," said Hut 8 CEO Asher Genoot, adding that the transaction "validates the long-term orientation of our partnerships."

For TeraWulf investors, the Hut 8 deal is a powerful signal. If a peer can lock in nearly $10 billion in lease commitments, the entire AI data infrastructure thesis gets a shot of adrenaline. It suggests that demand for computing power—whether for AI training or crypto mining—isn't going away anytime soon, regulatory hiccups notwithstanding.

TeraWulf Technical Analysis

Despite the recent pullback, TeraWulf's long-term story remains intact. The stock is still up about 279% over the past year, and it trades roughly 9.5% above its 200-day simple moving average of $17.29. That's a sign the longer-term uptrend is alive and well.

But the short-term picture is a bit messier. WULF is trading about 17% below its 20-day moving average of $22.81 and 21.1% below its 50-day moving average of $24.01. The moving average convergence divergence (MACD) indicator is below its signal line with a negative histogram, suggesting that bullish momentum has faded after the stock's sharp rally earlier this year.

The 20-day moving average is below the 50-day average, reflecting short-term weakness. However, the 50-day average remains above the 200-day average, preserving the longer-term bullish trend that began in August 2025. Traders are watching resistance near $20.82, close to the 100-day moving average, while initial support sits around $17.29, aligning with the 200-day moving average.

Earnings And Analyst Outlook

The next big catalyst for TeraWulf is its earnings report, expected around August 7, 2026. Here's what the Street is looking for:

• EPS Estimate: Loss of 19 cents (wider than the loss of 5 cents a year ago)
• Revenue Estimate: $47.99 million (up from $47.64 million a year ago)

Analysts are overwhelmingly bullish. The stock carries a Buy rating with an average price target of $36.00 across 23 analysts, ranging from a low of $25.00 to a high of $72.00. Recent analyst moves include:

• Cantor Fitzgerald: Overweight, maintains $37.00 target (July 15)
• Rosenblatt: Buy, maintains $30.00 target (July 15)
• Morgan Stanley: Overweight, raises target to $72.00 (July 8)

That $72 target from Morgan Stanley is a standout—it implies more than 280% upside from current levels. Even the average target of $36 suggests nearly 90% upside.

TeraWulf Top ETF Exposure

For ETF enthusiasts, TeraWulf has a significant presence in several thematic funds:

• Amplify Blockchain Technology ETF (BLOK): 4.36% weight
• Bitwise Crypto Industry Innovators ETF (BITQ): 5.64% weight
• VanEck Digital Transformation ETF (DAPP): 5.50% weight

Because WULF carries such heavy weightings in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. It's a double-edged sword—when the sector is hot, these ETFs amplify the gains; when it's not, they amplify the pain.

For now, though, the momentum is clearly on TeraWulf's side. The Hut 8 deal has reminded investors that the AI infrastructure buildout is real, and TeraWulf is positioned to be a key player. Whether the stock can sustain its rally will depend on earnings, Bitcoin's trajectory, and how the New York moratorium plays out. But for Monday at least, the bulls are in charge.