$WULF is now below where it was before signing the new Anthropic deal


The main reasons:
1) Overall neocloud weakness lately
2) The sale of its Abernathy stake
This deal had some of the best economics across WULF’s portfolio. The market is probably concerned about how WULF was executing on that site, and whether financing has dried up to the point where the company is being forced to raise capital by selling stakes in its sites
Instead, management frames the sale as a strategic choice to free up executive time and recycle capital into much more profitable wholly owned sites
TeraWulf put $450 million into Abernathy and pulled out $530 million, securing a 20% return on invested capital
Management argues that wholly owned sites like Lake Mariner offer 2.5x more bang for the buck, costing $2.2 million per megawatt to build compared to Abernathy’s $5 million per megawatt
The joint venture was simply taking too much time away from larger, higher-margin projects
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