TeraWulf (WULF) Surges 10% on AI Expansion and Strategic Financing – What’s Next?

Summary
• TeraWulf’s stock (WULF) surges 10.05% intraday, breaking above $12.425 amid a $3.2B financing announcement.
• Q3 revenue jumps 87% to $50.6M, driven by Bitcoin price recovery and HPC leasing.
• Google’s 14% stake and Fluidstack partnership fuel speculation on AI infrastructure dominance.
• Options volume spikes, with 1684 contracts traded on the 11/28 $12.5 call, signaling bullish momentum.

TeraWulf’s dramatic 10% rally on November 24, 2025, reflects a confluence of strategic financing, AI-driven revenue diversification, and institutional backing. The stock’s intraday high of $12.61 and low of $11.51 highlight volatile but directional buying pressure. With Google’s stake and a $9.5B Texas data center project in play, the move underscores a shift from Bitcoin mining to high-performance computing (HPC) as the core growth engine.

Strategic Financing and AI Leasing Drive TeraWulf’s Rally
TeraWulf’s 10% surge stems from a $3.2 billion senior secured notes offering to fund its Lake Mariner data center expansion, announced on October 14. This financing, secured by first-priority liens and backed by Google’s 14% stake, accelerates HPC leasing revenue, which contributed $7.2M to Q3 earnings. The company’s pivot to AI infrastructure—evidenced by a 168 MW Texas facility joint venture with Fluidstack—has repositioned it as a key player in the $1.2T global HPC market. Analysts at Roth Capital and B. Riley have raised price targets to $26 and $22, respectively, citing the potential to monetize AI demand through long-term leases and energy-efficient mining operations.

Data Processing Sector Gains Momentum as TeraWulf Leads AI Infrastructure Charge
The Data Processing & Outsourced Services sector, led by IBM’s 2.83% intraday gain, is seeing renewed interest as AI infrastructure demand surges. TeraWulf’s $3.2B financing and Texas data center project align with sector trends like hybrid outsourcing and AI-powered data extraction. IBM’s 2025 growth in AI-driven BPO solutions mirrors TeraWulf’s strategy, though TeraWulf’s focus on energy-efficient mining and HPC leasing differentiates it. The sector’s 30x P/S ratio, compared to TeraWulf’s 30x, suggests the market is pricing in aggressive growth for both AI infrastructure and traditional data processing players.

Options and ETFs to Capitalize on TeraWulf’s AI-Driven Volatility
• RSI: 24.0 (oversold)
• MACD: -0.482 (bearish), Signal Line: -0.134 (less bearish)
• Bollinger Bands: Upper $16.92, Middle $13.46, Lower $10.00 (price near lower band)
• 200D MA: $6.71 (far below current price)
• 30D MA: $13.60 (resistance near $13.85)

TeraWulf’s technicals suggest a short-term bounce from oversold RSI and narrowing MACD histogram, but long-term bullish trends remain intact. The stock is testing its 200D MA and Bollinger lower band, with key resistance at $13.85 (30D support) and $16.92 (upper band).

Top Options Picks:
• WULF20251128C12.5
- Strike: $12.50, Expiration: 11/28, IV: 100.34%, Leverage: 22.59%, Delta: 0.5049, Theta: -0.1047, Gamma: 0.2734, Turnover: 79,945
- IV (high volatility) and Gamma (price sensitivity) make this call ideal for a 5% upside scenario. Projected payoff: $1.225 (ST = $13.04).
• WULF20251128C13
- Strike: $13.00, Expiration: 11/28, IV: 96.02%, Leverage: 37.65%, Delta: 0.3664, Theta: -0.0868, Gamma: 0.2695, Turnover: 86,729
- Leverage and Theta suggest this call benefits from time decay and moderate price movement. Projected payoff: $0.54 (ST = $13.04).

Aggressive bulls should target WULF20251128C12.5 for a 5% upside, while WULF20251128C13 offers a safer, leveraged play. Both contracts benefit from high IV and liquidity, making them ideal for a short-term AI-driven rally.

Backtest TeraWulf Stock Performance
Key findings of the event study on “TeraWulf (WULF.O) days with ≥ 10 % intraday price surge” Back-test window 2022-01-03 – 2025-11-24 Events tested 100 trading days when the stock’s daily %-change closed at ≥ 10 % Canvas follows – open it for interactive tables & charts.How to read: • Win Rate – % of events with a positive cumulative return at each day after the surge. • Event Return – average cumulative return of WULF after the surge. • Benchmark Return – average SPX return over the same horizons (proxy). • Significance – statistical test vs benchmark.Headline takeaway • One-day follow-through is weak (-0.3 % on average, win-rate 42 %). • Momentum improves after day 3; by day 15 the average gain reaches ≈ 6 %, but it is largely indistinguishable from the market (not statistically significant). • Gains fade beyond day 20; by day 30 average excess return vs benchmark is negative, indicating little persistent edge.Practical implication Chasing WULF’s ≥ 10 % up-moves has not, on average, produced reliable short-term alpha since 2022. A tactical trade horizon of about two weeks captures the modest mean upside, but the lack of statistical significance and sub-50 % win-rate suggest caution. Tight risk controls and complementary signals are advisable.

TeraWulf’s AI Bet: Ride the Wave or Watch the Volatility?
TeraWulf’s 10% surge reflects a strategic pivot to AI infrastructure, backed by Google’s stake and a $3.2B financing plan. While the stock’s technicals suggest a short-term bounce from oversold levels, long-term success hinges on executing its Texas data center project and maintaining profitability in a capital-intensive sector. Investors should monitor the 11/28 options expiration for liquidity clues and watch IBM’s 2.83% gain as a sector benchmark. For now, the 12.61 intraday high and 13.85 30D MA are critical levels to test. Action: Buy WULF20251128C12.5 if $12.50 breaks, or short-term hold for a $13.00 breakout.