TeraWulf (WULF) Surges 10.4%: Is AI Infrastructure the Catalyst Behind the Volatile Rally?

Summary
• TeraWulf’s stock (WULF) surges 10.4% intraday, breaking above $12.465 amid a $3.2B notes offering and AI infrastructure expansion.
• Q3 revenue jumps 87% to $50.6M, driven by Bitcoin price recovery and HPC leasing income.
• Options volume spikes 124% on the WULF20251128C12 contract, signaling bullish momentum.

TeraWulf’s dramatic 10.4% intraday rally on November 24, 2025, has ignited investor speculation about its AI-driven transformation. The stock’s surge follows a $3.2B senior secured notes offering to fund a 168 MW data center joint venture with Fluidstack, alongside a strategic pivot to high-performance computing (HPC) leasing. With a 52-week high of $17.05 still in reach, the move reflects a confluence of capital-raising optimism, AI infrastructure demand, and Bitcoin’s rebound. The stock’s 12.61 intraday high and 11.51 low highlight its volatility, as traders weigh execution risks against long-term growth potential.

AI Infrastructure Pivot and Capital Raise Fuel WULF’s Surge
TeraWulf’s 10.4% intraday jump is directly tied to its $3.2B notes offering to fund a 168 MW data center with Fluidstack, a move that positions the company as a key player in AI-driven infrastructure. The offering, secured by first-priority liens and backed by Google’s 14% stake, signals institutional confidence in TeraWulf’s ability to monetize hyperscale computing. Additionally, Q3 revenue surged 87% to $50.6M, with $43.4M from Bitcoin mining and $7.2M from HPC leasing, demonstrating diversification into high-margin AI infrastructure. Analysts at Roth Capital and Clear Street have raised price targets to $26 and $22, respectively, citing the potential of TeraWulf’s 168 MW facility to generate $920.8M in revenue by 2028. However, the stock’s sharp rise also reflects speculative fervor, as the offering’s completion remains conditional on market conditions and execution risks.

Options Playbook: High-Leverage Calls and Gamma-Driven Bets
• 200-day average: 6.7075 (well below current price)
• RSI: 24.0 (oversold)
• MACD: -0.482 (bearish), Signal Line: -0.134 (neutral), Histogram: -0.348 (bearish divergence)
• Bollinger Bands: 16.917 (upper), 13.46 (middle), 10.003 (lower) – current price near 10.003 support
• Kline pattern: Short-term bearish, long-term bullish

TeraWulf’s technicals suggest a volatile setup. The RSI at 24.0 indicates oversold conditions, while the MACD histogram’s bearish divergence hints at near-term consolidation. However, the 200-day average at $6.7075 and Bollinger Bands suggest a potential rebound from the 10.003 support level. For traders, the key is balancing short-term volatility with long-term AI infrastructure potential.

Top Option 1: WULF20251128C12
• Contract Code: WULF20251128C12
• Type: Call
• Strike Price: $12
• Expiration Date: 2025-11-28
• IV Ratio: 103.56% (high implied volatility)
• Leverage Ratio: 14.65% (moderate)
• Delta: 0.645 (high sensitivity to price moves)
• Theta: -0.1145 (rapid time decay)
• Gamma: 0.2466 (strong gamma for directional bets)
• Turnover: $119,202 (high liquidity)
• Price Change Ratio: 124.32% (volatility spike)
• Payoff at 5% Upside: $12.465 → $13.10; max(0, 13.10 - 12) = $1.10 per share

This call option stands out for its high gamma and delta, making it ideal for a short-term bullish bet. The 103.56% IV suggests market anticipation of further volatility, while the 14.65% leverage ratio amplifies gains if the stock breaks above $12.50. However, the -0.1145 theta indicates rapid time decay, so timing is critical.

Top Option 2: WULF20251128C12.5
• Contract Code: WULF20251128C12.5
• Type: Call
• Strike Price: $12.50
• Expiration Date: 2025-11-28
• IV Ratio: 101.16% (high implied volatility)
• Leverage Ratio: 21.85% (aggressive)
• Delta: 0.513 (moderate sensitivity)
• Theta: -0.1061 (rapid time decay)
• Gamma: 0.2704 (strong gamma)
• Turnover: $76,627 (high liquidity)
• Price Change Ratio: 111.11% (volatility spike)
• Payoff at 5% Upside: $12.465 → $13.10; max(0, 13.10 - 12.50) = $0.60 per share

This contract offers a balance of leverage and liquidity. The 21.85% leverage ratio and 101.16% IV make it a high-reward option if the stock surges past $12.50. The 0.2704 gamma ensures the delta increases as the stock rises, compounding gains. However, the -0.1061 theta means time decay is a risk if the move is delayed.

Trading Hook: Aggressive bulls should consider WULF20251128C12 into a break above $12.50, while cautious traders may use WULF20251128C12.5 for a directional play with defined risk.

Backtest TeraWulf Stock Performance
Below is the interactive back-test panel. It summarises the strategy logic, test conditions and the visualised results for the “10 % intraday-surge” rule on TeraWulf (WULF.O) from 2022-01-01 to 2025-11-24.Key statistics • Total return: 21.9 % • Annualised return: 41.2 % • Sharpe ratio: 0.48 • Maximum draw-down: -86.8 % • Average trade return: 1.85 % (wins ≈ 19.1 %, losses ≈ -12.3 %) Assumptions auto-filled by Aime 1. Price type = Close: aligns with most EOD strategies. 2. Risk controls (20 % TP, 8 % SL, 5-day cap) chosen to cap volatility typical of small-cap crypto-related miners like WULF and to focus on short-term momentum. Feel free to explore the panel and let me know if you’d like to adjust any parameters or drill further into the trade log.

AI Infrastructure Bet: Is WULF’s Rally Sustainable?
TeraWulf’s 10.4% surge reflects a pivotal moment in its transition from Bitcoin mining to AI infrastructure. The $3.2B notes offering and Fluidstack partnership position the company to capitalize on the $920.8M revenue forecast by 2028, but execution risks—such as refinancing challenges and counterparty stability—remain. Traders should monitor the 12.50 support level and 13.00 resistance, with options like WULF20251128C12 offering high-gamma exposure to a potential breakout. Meanwhile, the sector leader AMZN (1.948% intraday gain) underscores broader tech optimism, but TeraWulf’s AI pivot could diverge from the S&P’s trajectory. Action: Buy WULF20251128C12 if $12.50 is cleared within 48 hours; otherwise, watch for a pullback to 10.003 before initiating longs.