TeraWulf Doubles Power Capacity with Strategic Site Buys

Stock Rises on Major Capacity Expansion

TeraWulf Inc. announced two strategic infrastructure acquisitions, adding approximately 1.5 gigawatts of power capacity to its portfolio. The news prompted an 8% rise in its stock during after-hours trading. This expansion more than doubles the company's total platform capacity to 2.8 GW across five sites, reinforcing its growth strategy.

Overview of the Acquisitions

The digital infrastructure company acquired two brownfield sites located in Kentucky and Maryland. The Kentucky site in Hawesville is a former industrial location with over 250 buildable acres and an existing power availability of about 480 MW. It features high-voltage transmission lines and a direct connection to the regional grid.

The Maryland acquisition involves the Morgantown Generating Station. This site has an operational generation capacity of 210 MW with the potential to expand to 1 GW. The move establishes TeraWulf's presence in the PJM market, a regional transmission organization.

Impact on Growth and Strategy

These acquisitions align with TeraWulf's strategy of developing energy-advantaged locations with near-term power availability. Paul Prager, Chairman and CEO, stated the plan focuses on reinvesting in existing energy infrastructure to support grid reliability and responsible growth. The expanded development pipeline supports the company's target of adding 250 to 500 MW of new contracted capacity each year.

Summary

TeraWulf's strategic acquisitions significantly increase its operational scale and future growth potential. The move was positively received by the market, as reflected in the stock price increase. Final closing of the Morgantown acquisition is contingent on receiving regulatory approvals, including from the Federal Energy Regulatory Commission.

FAQ

Q: Why did TeraWulf's stock increase?
A: The stock rose 8% in after-hours trading following the announcement of strategic site acquisitions that will add 1.5 GW of power capacity and more than double its total portfolio.

Q: What specific assets did TeraWulf acquire?
A: TeraWulf acquired a former industrial site in Hawesville, Kentucky, and the Morgantown Generating Station in Maryland.

Q: How does this affect TeraWulf's capacity?
A: The acquisitions increase the company's total power capacity portfolio to 2.8 GW, supporting its annual growth target of 250 to 500 MW of new contracted capacity.

Source: Investing.com