TeraWulf Soars 32.8%—What’s Fueling This Volcanic Move?

Summary
• TeraWulf (WULF) surges 32.8% intraday, trading at $7.2515 after opening at $7.20
• $3.7B AI Hosting Deal with Google secures 8% stake, triggering explosive volume (83.3M shares)
• Bitcoin’s record high and sector-wide crypto momentum amplify speculative fervor
• Options chain erupts with 180%+ implied volatility, signaling extreme short-term expectations

TeraWulf’s meteoric rise has ignited a firestorm in the crypto-adjacent tech sector, driven by a landmark AI infrastructure partnership and Bitcoin’s all-time high. With turnover exceeding 28.7% of float and options volatility spiking, the stock’s 32.8% intraday gain reflects a perfect storm of strategic positioning, macro crypto tailwinds, and speculative frenzy.

AI Hosting Deal Ignites Institutional Backing
TeraWulf’s 32.8% surge is directly attributable to its announced $3.7B AI Hosting Deal, which secures Google’s 8% equity stake. This partnership positions WULF as a critical infrastructure provider for AI workloads, aligning with the sector’s insatiable demand for compute power. The deal’s scale—3x WULF’s market cap—has triggered a re-rating of its business model from speculative crypto miner to AI-enabler. CoinDesk’s coverage further amplified urgency, while Bitcoin’s $124K peak and Ethereum’s $4.8K proximity created a tailwind for crypto-linked equities.

Options Volatility and Gamma Playbook for WULF’s Rocket Ride
• RSI: 52.76 (neutral), MACD: 0.147 (bullish divergence), 200D MA: $4.84 (well below price)
• Bollinger Bands: Price at $7.25 vs. upper band $5.495 (overextended), Kline Pattern: Short-term bullish, long-term ranging

Top Options Contracts:
• WULF20250919C7
- Type: Call, Strike: $7, Expiry: 2025-09-19
- IV: 110.66% (high volatility), Leverage Ratio: 6.28%, Delta: 0.618 (aggressive), Theta: -0.0170 (moderate decay), Gamma: 0.1486 (high sensitivity), Turnover: 796,239
- Why: High gamma and IV justify aggressive long-dated call exposure as WULF trades above $7.25. Projected 5% upside (to $7.61) yields $0.61 payoff per contract.
• WULF20250822C7
- Type: Call, Strike: $7, Expiry: 2025-08-22
- IV: 144.61% (extreme), Leverage Ratio: 9.10%, Delta: 0.615 (aggressive), Theta: -0.0524 (rapid decay), Gamma: 0.2312 (very high sensitivity), Turnover: 124,761
- Why: Short-term gamma play for rapid price swings. High theta decay favors quick resolution, but 180%+ IV implies sharp re-pricing expected. Projected 5% upside yields $0.61 payoff.

Action: Aggressive bulls target WULF20250919C7 for gamma-driven leverage; scalpers use WULF20250822C7 for short-term volatility capture. Monitor Bitcoin’s $120K support and WULF’s $7.37 intraday high for continuation signals.

Backtest TeraWulf Stock Performance
The backtest of WULF's performance after a 33% intraday surge reveals favorable short-to-medium-term gains, with the 3-Day win rate at 51.52%, the 10-Day at 52.27%, and the 30-Day at 56.57%. The maximum return during the backtest was 21.76% over 30 days, indicating the strategy's potential for capturing significant gains within a month.

Ride the AI-Crypto Convergence—But Watch the Gamma Clock
TeraWulf’s 32.8% surge is a masterclass in sector convergence, blending AI infrastructure demand with crypto’s macro re-rating. While the 200D MA ($4.84) and $5.25 support levels suggest a bullish bias, the options chain’s 180%+ IV and rapid theta decay (e.g., WULF20250822C7’s -0.0524) demand tight timing. Sector leader MARA (-3.53%) highlights divergences, but WULF’s AI narrative offers a unique catalyst. Act Now: Buy WULF20250919C7 for long-term exposure or WULF20250822C7 for short-term gamma. Watch: Bitcoin’s $120K support and WULF’s $7.37 high for trend confirmation.