TeraWulf Soars 11.15%—Can This AI-Driven Data Center Powerhouse Sustain the Momentum?

Summary
• Google boosts stake to 14% with $3.2B backstop
• Fluidstack expands Lake Mariner to 360 MW
• WULF surges 90% in 7 days, hits 52W high of $10.71

TeraWulf (WULF) has ignited a 11.15% intraday rally, trading at $9.97 after a seismic shift in its AI infrastructure strategy. The stock’s 90% weekly surge—driven by Google’s $3.2B backstop and Fluidstack’s 360 MW expansion—has positioned the data center operator at the forefront of the AI arms race. With $6.7B in contracted revenue and a 14% equity stake from Google, the question looms: Is this a fleeting frenzy or a new era for TeraWulf’s Lake Mariner campus?

Google’s $3.2B Bet and Fluidstack’s 360 MW Expansion Ignite Bullish Sentiment
TeraWulf’s explosive move stems from two landmark announcements: Google’s $3.2B backstop and Fluidstack’s 160 MW expansion at Lake Mariner. The Google deal elevates its stake to 14% and provides $1.4B in incremental financing for the CB-5 data center, while Fluidstack’s expansion confirms 360 MW of contracted capacity—$6.7B in revenue with $16B upside. These developments validate TeraWulf’s strategic alignment with AI infrastructure demand, triggering a 90% weekly surge as investors bet on its role in the AI compute revolution.

Data Center Sector Booming as Vacancy Hits 2.3%
The data center sector is experiencing unprecedented demand, with vacancy rates at a record-low 2.3% and 7.8 GW under construction. TeraWulf’s 11.15% rally outpaces Equinix (EQIX), which fell 0.5% despite being the sector leader. While EQIX faces margin pressures, TeraWulf’s AI-focused expansion and Google’s financial backing position it as a high-growth outlier in a sector dominated by hyperscalers and colocation providers.

Options Playbook: Capitalizing on WULF’s Volatility and Bullish Momentum
• MACD: 0.648 (bullish divergence)
• RSI: 83.19 (overbought)
• 200D MA: $4.86 (far below price)
• Bollinger Bands: $9.97 near upper band ($7.81)

WULF’s technicals scream short-term bullish momentum, with RSI in overbought territory and MACD above the signal line. The 200D MA at $4.86 underscores a multi-year breakout. For options, focus on high-leverage, high-liquidity contracts with moderate deltas and strong gamma:

Top Option 1: WULF20250822C10
• Code: WULF20250822C10
• Type: Call
• Strike: $10
• Expiry: 2025-08-22
• IV: 112.28% (high volatility)
• Leverage: 19.90% (moderate)
• Delta: 0.512 (balanced sensitivity)
• Theta: -0.0919 (rapid time decay)
• Gamma: 0.305 (high sensitivity to price swings)
• Turnover: $1.7M (liquid)

This call option offers a 91.3% price change ratio, ideal for a 5% upside scenario. With a 5% move to $10.47, payoff = max(0, $10.47 - $10) = $0.47 per share. The high gamma ensures rapid premium gains if WULF breaks above $10.50.

Top Option 2: WULF20250829C10.5
• Code: WULF20250829C10.5
• Type: Call
• Strike: $10.50
• Expiry: 2025-08-29
• IV: 115.38% (elevated)
• Leverage: 31.09% (aggressive)
• Delta: 0.372 (moderate sensitivity)
• Theta: -0.0800 (moderate decay)
• Gamma: 0.281 (responsive to price swings)
• Turnover: $649K (liquid)

This contract offers a 56.25% price change ratio. A 5% move to $10.47 yields payoff = max(0, $10.47 - $10.50) = $0.00 (breakeven). However, a 7% move to $10.76 triggers payoff = $0.26, making it a high-reward play if WULF tests its 52W high of $10.71.

Action: Aggressive bulls should target WULF20250822C10 for a 5% upside, while WULF20250829C10.5 offers a speculative play on a $10.71 breakout.

Backtest TeraWulf Stock Performance
The 11% intraday surge in WULF has historically led to positive short-to-medium-term gains. The backtest data shows that following this event, WULF tends to perform well across various time frames:1. 3-Day Win Rate: 51.49% of days experience a return, with an average return of 1.19%.2. 10-Day Win Rate: The win rate increases to 51.98%, with an average return of 3.76%.3. 30-Day Win Rate: The highest win rate is observed at 56.93%, with an average return of 10.18%.4. Maximum Return: The maximum return during the backtest period was 24.63%, achieved on day 59 after the surge.These results suggest that while there is some volatility in the immediate aftermath of the surge, WULF tends to stabilize and continue its upward trend in the following days.

WULF’s AI-Driven Surge: A New Era or a Volatility Play?
TeraWulf’s 11.15% rally is fueled by Google’s $3.2B backstop and Fluidstack’s 360 MW expansion, but sustainability hinges on maintaining AI infrastructure demand and executing Lake Mariner’s 2026 operations. The 52W high of $10.71 and 200D MA at $4.86 are critical levels to watch. While Equinix (EQIX) lags with a -0.5% move, WULF’s options volatility and technicals suggest a short-term bullish bias. Investors should monitor the 9.50 support and 10.50 resistance, with a 5% upside scenario favoring the WULF20250822C10 call. Act now: Buy WULF20250822C10 for a 5% upside or short-term hold at $10.50.