What's Going On With TeraWulf Stock Monday?

TeraWulf Inc. (NASDAQ:WULF) stock traded higher Monday after Kentucky regulators approved a major power agreement for the company’s Justified Data Campus.

The Kentucky Public Service Commission approved up to 482 megawatts of electric service for the site in Hancock County. The Aug. 21 order allows Big Rivers Electric Corp. and Kenergy Corp. to implement the agreement.

TeraWulf Will Cover Project Costs

Under the deal, TeraWulf will pay the market, transmission and delivery costs tied to its power use. It will also fund customer-specific infrastructure and provide substantial credit support.

The commission said the agreement protects existing utility customers. It also found that the rates were fair and did not give TeraWulf an unreasonable advantage.

The agreement includes extra demand charges and customer fees. Those payments will provide additional revenue to Big Rivers and Kenergy.

Former Industrial Site Gains New Purpose

TeraWulf is developing the campus at the former Century Aluminum Hawesville facility. The closed aluminum smelter left behind about 482 megawatts of available transmission capacity.

Reusing that infrastructure could help TeraWulf bring the data center online more efficiently. The campus will support artificial intelligence and high-performance computing workloads.

TeraWulf expects to invest about $4 billion to $4.5 billion in site development and its initial data halls. That estimate excludes spending by customers on computing equipment and related infrastructure.

The commission also cited the project’s expected employment, investment and tax benefits. TeraWulf said the development could offer a model for expanding digital infrastructure while protecting utility customers.

Technical Analysis

TeraWulf’s broader technical trend remains weak. The stock traded 6.8% below its 20-day simple moving average. It was also 23.4% below its 50-day average and 25.9% below its 100-day average.

In addition, shares remained 11.1% below the 200-day moving average. The 20-day average also sat below the 50-day average, which signals continued bearish pressure.

However, momentum may be improving. The moving average convergence divergence indicator was above its signal line, and the histogram was positive. This suggests sellers may be losing control.

Traders are watching resistance near $17.50. That level is close to the 200-day simple moving average of $17.75 and the 200-day exponential moving average of $17.64. Support sits near $14.50.

TeraWulf shares have gained 76.48% over the past year. However, the stock remains well below its 52-week high of $29.84.

Photo via Shutterstock

WULF Price Action: TeraWulf shares were up 1.69% at $15.90 at the time of publication on Monday, according to Benzinga Pro data.