TeraWulf Falls 4% Despite Google Backstop for $19 Billion Anthropic Leases; Cipher Digital Plunges 18%, IREN Tumbles 9% - Yahoo Finance
By Google News AI ·
TeraWulf fell just 4% while Cipher Digital cratered 18%, as Google's $19 billion Anthropic lease guarantee cushioned WULF from the broader selloff.
Google's backstop won't activate until TeraWulf finishes construction, leaving the company exposed on $4 to $4.5 billion in development costs.
The Texas governor-elect's data center moratorium pledge disproportionately threatens Cipher Digital and IREN, whose entire development pipelines sit inside the state.
Good news from Google wasn't enough to keep TeraWulf (NASDAQ:WULF) out of a broad selloff in AI data center stocks. TeraWulf stock is at $12.04 in afternoon trading, down 4%. The decline comes even though the company disclosed on November 4 that Alphabet (NASDAQ:GOOGL) unit Google is guaranteeing Anthropic's leases at its Kentucky campus.
Former crypto miners that now host AI workloads are falling much harder. Cipher Digital (NASDAQ:CIFR) stock is at $6.64, down 18%. IREN (NASDAQ:IREN) stock is at $22.22, down 9%. Meanwhile, AI cloud provider CoreWeave (NASDAQ:CRWV) is falling too.
The selloff reverses a rebound from November 3, when IREN rose 10% during a group-wide rally that also lifted Cipher Digital and TeraWulf. One possible reading of the gap is that Google's support is buffering TeraWulf while its peers take the most of the selling.
TeraWulf disclosed that Google signed three credit support agreements covering Anthropic's 20-year leases at the Justified Data Campus in Hawesville, Kentucky. According to TeraWulf, the leases span approximately 401 megawatts across three buildings and carry contracted commitments of about $19 billion over the initial term. However, the guarantee takes effect only once each lease's last data hall reaches its commencement date, with phased delivery expected from late 2027…
Originally published by Google News AI
