TeraWulf (WULF) Surges 22.7% on $9.5B AI Compute Joint Venture with Fluidstack and Google Backstop – Is This the Inflection Point?

Summary
• TeraWulf (WULF) surges 22.69% intraday to $16.735, hitting 52-week high of $17.05
• Announces 168 MW AI compute joint venture with Fluidstack, backed by $1.3B Google lease support
• Contracted HPC capacity now exceeds 510 MW, targeting 250–500 MW annual growth

TeraWulf’s stock has erupted on news of a landmark $9.5 billion AI compute joint venture with Fluidstack, supported by Google’s $1.3 billion credit backstop. The 22.7% intraday surge reflects investor optimism over the company’s strategic pivot to high-performance computing (HPC) and its potential to scale contracted capacity at a rapid pace. With the stock trading near its 52-week high and a 51% ownership stake in the new venture, the move signals a pivotal shift in TeraWulf’s growth trajectory.

Strategic AI Compute Expansion Ignites Investor Frenzy
TeraWulf’s 22.7% intraday surge stems from the announcement of a 168 MW AI compute joint venture with Fluidstack, backed by Google’s $1.3 billion lease support. The 25-year agreement, valued at $9.5 billion, positions TeraWulf to expand its contracted HPC platform to 510 MW of critical IT load, with a revised growth target of 250–500 MW annually. Google’s credit enhancement for project debt financing and the exclusive right to partner on future 168 MW projects underscore the venture’s scalability and institutional credibility. CEO Paul Prager emphasized the transaction as a validation of TeraWulf’s strategy to convert infrastructure assets into contracted megawatts with investment-grade counterparties.

Data Center Services Sector Mixed as TeraWulf Outperforms
While TeraWulf’s stock surged, the broader Data Center Services sector showed mixed performance. Sector leader Equinix (EQIX) declined 1.41% intraday, reflecting divergent investor sentiment. TeraWulf’s AI-focused HPC expansion contrasts with traditional colocation providers, highlighting its unique positioning in the high-margin AI infrastructure market. The sector’s fragmented response underscores TeraWulf’s potential to outperform as AI demand accelerates.

Options Playbook: Leveraging Volatility in TeraWulf’s Bull Run
• MACD: 0.72 (bullish divergence), Signal Line: 0.90 (bearish crossover), Histogram: -0.18 (bearish momentum)
• RSI: 60.01 (neutral), Bollinger Bands: $10.72–$15.52 (price near upper band)
• 200D MA: $5.95 (far below current price), 30D MA: $12.48 (support level)

TeraWulf’s technicals suggest a continuation of the bullish trend, with the 52-week high at $17.05 acting as a critical resistance. The RSI remains in neutral territory, avoiding overbought conditions, while the MACD histogram’s bearish contraction hints at potential consolidation. For options traders, the WULF20251031C16 and WULF20251031C16.5 contracts stand out:

• WULF20251031C16: Call option with 16 strike price, 1072.73% price change ratio, 13.95% leverage ratio, 112.29% IV, 0.67 delta, -0.19 theta, 0.18 gamma. High leverage and moderate delta make it ideal for a 5% upside scenario (targeting $17.57), with a projected payoff of $1.57 per contract.
• WULF20251031C16.5: Call option with 16.5 strike price, 1328.57% price change ratio, 18.20% leverage ratio, 113.65% IV, 0.57 delta, -0.18 theta, 0.19 gamma. Slightly higher strike price offers a balance between risk and reward, with a projected payoff of $1.28 per contract under the same 5% scenario.

Both options benefit from high implied volatility and liquidity (turnover of 927,447 and 362,481, respectively). Aggressive bulls should consider WULF20251031C16 for a breakout above $17.05, while WULF20251031C16.5 offers a safer entry if the stock consolidates near $16.50.

Backtest TeraWulf Stock Performance
Here is the back-test you requested. A visual report has been placed on the right-hand side of the chat window – please open it to view the detailed statistics, trade list and equity-curve chart.Key take-aways (high-level):• Since 2022, the strategy delivered a cumulative return of roughly 61 % (≈ 15 % annualised) while experiencing a max draw-down of ~17 %. • Average trade gained about 7.6 %; winning trades outpaced losers both in frequency and magnitude, producing a Sharpe ratio near 0.7. • The stop-loss (-8 %) and take-profit (+10 %) thresholds, together with a 10-day time stop, were chosen as balanced default risk controls – tight enough to cap downside yet loose enough to let momentum play out. Feel free to adjust them to match your own risk profile.Let me know if you’d like to dig deeper (e.g., compare against buy-and-hold, vary the surge threshold, or refine exit rules).

TeraWulf’s AI Bet: A High-Velocity Inflection Point or Overhyped Hype?
TeraWulf’s 22.7% surge on the Fluidstack-Google joint venture signals a high-stakes inflection point in its transition from Bitcoin mining to AI infrastructure. The $9.5 billion contract, combined with Google’s credit backstop, validates its ability to secure investment-grade counterparties at scale. However, technical indicators like the bearish MACD histogram and the stock’s proximity to its 52-week high suggest caution. Investors should monitor the $17.05 level for a breakout confirmation and watch sector leader Equinix (EQIX) for broader market sentiment. For now, the WULF20251031C16 and WULF20251031C16.5 options offer leveraged exposure to a potential continuation of the bullish trend. If the stock fails to hold above $16.50, re-evaluate the trade setup.