Dear Friend,
A drilling crew near the Grand Canyon just confirmed what the International Energy Agency calls one of the largest energy resources ever measured.
Enough to meet global electricity demand 140 times over.
Not 140 percent. One hundred and forty times.
Everyone knew the energy was there. Reaching it was the problem - miles of solid rock.
That changed last year.
A crew drilled nearly three miles down in 16 days.
The Department of Energy said it would take 64.
They weren't after oil.
They were after the heat.
Google already signed a 15-year deal. Bill Gates wrote a $100 million check. And on August 18th, Washington hands this resource an edge no other energy source has.
One company sits at the center.
See the company behind the Grand Canyon discovery >>
“The Buck Stops Here,”
Kelly Maguire
Behind the Markets
How TeraWulf’s Anthropic Deal Booted Up a $19B AI Empire
Submitted by Jeffrey Neal Johnson. Publication Date: 7/7/2026.
Key Points
- TeraWulf signed a 20-year lease with Anthropic that is expected to generate about $19 billion in contracted revenue.
- TeraWulf is selling its 50.1% stake in the Abernathy joint venture to recycle capital into wholly owned AI infrastructure projects.
- Institutional ownership is high, but elevated short interest leaves the stock exposed to sharp moves in either direction.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
Artificial intelligence is running into a serious physical constraint. Language models are getting exponentially smarter, and silicon is processing data faster than ever, but the electrical grid cannot deliver power quickly enough to keep pace with demand. Hyperscalers require multi-gigawatt power drops and large liquid-cooling systems to train next-generation models, and they need those facilities operational immediately.
Enter the Bitcoin mining sector. For years, cryptocurrency miners have spent billions building high-density energy fortresses in remote locations. Now, operators with the right infrastructure are realizing they hold the exact real estate that artificial intelligence (AI) developers are desperate to acquire.
The $19 Billion Jolt: Rewiring the AI Infrastructure Trade
BlackRock and JPMorgan are quietly buying - here's what they see (Ad)
Trump just signed a law requiring America's entire $382 trillion financial system to migrate to a new money network by April 2027. BlackRock CEO Larry Fink already calls it 'the next major evolution in market infrastructure.'
Our research has identified one small, overlooked position at the center of this policy-driven shift - already drawing quiet institutional buying from BNY Mellon, State Street, and JPMorgan. It currently trades for pennies relative to where institutional demand could push it. The Q3 2026 compliance deadline may be the last window before prices move.
Click here to see the full research and the position nameTeraWulf Inc. (NASDAQ: WULF) has provided definitive proof of concept for this infrastructure crossover thesis. The company recently executed a landmark 20-year lease agreement with artificial intelligence powerhouse Anthropic, securing an estimated $19 billion in contracted revenue over the initial term.
Investors should view this as more than a standard commercial real estate transaction. It represents a fundamental structural shift in how digital infrastructure operators can monetize stranded power assets. By transitioning from the highly cyclical nature of cryptocurrency mining to utility-grade data center yield, TeraWulf is setting a new operational precedent for the high-performance computing (HPC) sector.
Flipping the Switch: Funding a $19B Hyperscaler Empire
To understand the magnitude of this transition, investors need to examine the mechanics of the Anthropic agreement and how TeraWulf is funding the buildout. The 20-year lease centers on the Justified Data campus in Hawesville, Kentucky, a purpose-built facility designed to handle 401 megawatts of critical IT load.
Management expects to bring the initial capacity online in the second half of 2027, with the campus ramping to the full 401 megawatts by early 2028. To put that scale into perspective, traditional enterprise data centers often operate between 10 and 50 megawatts. A 401-megawatt site is a true digital fortress.
Building a facility of this magnitude requires immense capital expenditure. A look at the balance sheet shows an elevated debt-to-equity ratio of 33.00, a lingering result of rapid infrastructure expansion during previous crypto bull markets. Funding this new Anthropic campus entirely through high-interest debt or heavy equity dilution would have severely penalized current shareholders. Instead, TeraWulf executed a strategic masterclass in capital recycling.
Alongside the Anthropic announcement, TeraWulf sold its 50.1% interest in the Abernathy Joint Venture to a Fluidstack-led investor group. The divestiture monetizes a 168-megawatt Texas facility for $450 million, at a premium to the original invested capital.
By liquidating a legacy joint venture stake, TeraWulf captures immediate non-dilutive capital that can be redeployed directly into the wholly owned Justified Data project. This move eliminates joint-venture accounting constraints and ensures TeraWulf maintains direct operational control over its most lucrative hyperscaler infrastructure.
Upgrading the Circuit: From Block Rewards to AI Yield
This strategic pivot completely rewrites TeraWulf's forward-looking margin profile. Historically, cryptocurrency miners have suffered from brutal margin compression. They are tethered to volatile block rewards, unpredictable spot pricing, and mandatory hardware refresh cycles following every network halving event. Recent historical earnings reflect these operational challenges, highlighted by a sharp first-quarter 2026 earnings miss and heavily negative trailing net margins.
Hosting enterprise-grade artificial intelligence workloads changes the financial math entirely. Hyperscalers require the same multi-megawatt grid interconnects and liquid-cooling infrastructure as modern miners, but they pay significantly higher premiums for network stability and guaranteed uptime.
Industry data suggests that high-performance computing workloads yield approximately $149,000 per megawatt month. By comparison, conventional mining operations generate roughly $87,000 per megawatt month.
By locking in a two-decade agreement backed by an investment-grade credit rating, TeraWulf replaces the unpredictable lottery of mining rewards with predictable cash flows. Investors are seeing similar transition attempts across the sector from peers like Core Scientific Inc. (NASDAQ: CORZ) and Iris Energy Ltd. (NASDAQ: IREN), but securing a binding $19 billion commitment from a tier-one developer firmly separates the actual operators from the aspirational ones.
Shock to the System: A High-Voltage Squeeze
The underlying business fundamentals are shifting rapidly, and technical market mechanics are amplifying the upside narrative. A sharp disconnect exists between institutional positioning and retail short sellers, creating a volatile setup that favors significant upward price action.
Over the trailing 12 months, smart money has been aggressively accumulating shares.
Recent 13F filings indicate $991.36 million in institutional inflows compared with just $305.12 million in outflows, bringing total institutional ownership to a majority 62.49% of outstanding shares. Investors will also see transparent internal positioning ahead of this catalyst, highlighted by a recent stock retainer grant to Director Walter E. Carter and a structured trading plan established by CEO Paul Prager to navigate the anticipated capacity scaling.
Despite this clear institutional conviction, short interest remains acutely elevated. Currently, 108.7 million shares are sold short, accounting for almost 28% of the publicly available float. With a days-to-cover ratio of 4.1, bearish traders find themselves highly vulnerable to sudden price spikes.
Short sellers built their thesis on the assumption of continued margin compression and debt distress from legacy mining operations. The sudden realization of $19 billion in contracted high-margin revenue forces a complete reassessment of that bear thesis.
As TeraWulf begins to book this utility-grade yield, the fundamental repricing of the stock creates significant near-term pressure on those short positions. That can act as a forced-covering mechanism, adding intense buying volume to an equity already benefiting from heavy institutional accumulation.
Plugging Into the Next Generation of Compute
TeraWulf has provided a compelling blueprint for monetizing high-density power assets in the modern digital economy. The transition from cryptocurrency hardware to utility-grade computational real estate structurally derisks the business model while significantly expanding long-term revenue visibility.
Investors seeking exposure to the physical infrastructure required to power the next generation of computing may want to add TeraWulf to their watchlist as the initial phases of the Anthropic buildout take shape. As always, execution risk remains a factor in any large-scale development project, particularly regarding the timely deployment of the 401-megawatt infrastructure by 2027. Cautious market participants may prefer to monitor upcoming earnings reports to verify that capital from the Abernathy sale is efficiently flowing into the Kentucky campus before taking a definitive position.
SK Hynix’s Nasdaq Listing Could Reset the AI Memory Trade
By Thomas Hughes. Posted: 7/7/2026.
Key Points
- SK Hynix's Nasdaq listing could raise up to $28 billion and trades at a discount to Micron, offering potential double-digit upside for investors.
- Strong institutional backing, dominant HBM market share, and sold-out demand through 2027 support SK Hynix's growth, while Micron expands capacity to compete for NVIDIA business.
- Micron faces near-term share price headwinds as capital may shift toward SK Hynix, but analysts remain bullish, citing strong buy ratings and significant upside potential.
- Special Report: Forget SpaceX. Buy the company Musk can't replace.
SK Hynix's Nasdaq listing could not only reset the AI memory trade but also accelerate it. The company is using Wall Street to help ensure it retains its leadership position in the hottest market since the AI boom began.
With control of approximately 60% of the high-bandwidth memory (HBM) market, which is critical for advanced computing, investors have an opportunity to gain exposure to a leading memory pure-play at a discount to its peers. Estimates have SK Hynix's Korean listing trading at approximately 8x forward earnings compared with Micron’s (NASDAQ: MU) 13.5x, suggesting the stock could see immediate double-digit upside upon listing.
BlackRock and JPMorgan are quietly buying - here's what they see (Ad)
Trump just signed a law requiring America's entire $382 trillion financial system to migrate to a new money network by April 2027. BlackRock CEO Larry Fink already calls it 'the next major evolution in market infrastructure.'
Our research has identified one small, overlooked position at the center of this policy-driven shift - already drawing quiet institutional buying from BNY Mellon, State Street, and JPMorgan. It currently trades for pennies relative to where institutional demand could push it. The Q3 2026 compliance deadline may be the last window before prices move.
Click here to see the full research and the position nameWhile the upside potential for SK Hynix's U.S. listing is robust, there are a few things investors should consider, chief among them volatility. The listing will include the issuance of new shares, representing approximately 2.5% of the existing share count, which will create a slight headwind for price action.
The offset will likely be strong institutional backing, with several high-profile firms committing to large stakes. Institutional backers include Situational Awareness Partners, an investment firm founded by a former OpenAI researcher, and Coatue Management, a U.S.-based technology-focused firm.
SK Hynix Throws Down the Gauntlet, Micron Will Respond
SK Hynix's U.S. listing is expected to raise as much as $28 billion in new capital. The money will be used to accelerate expansion plans and buy new equipment, both critical to meeting demand and maintaining product timelines.
The company is strengthening ties with NVIDIA (NASDAQ: NVDA), ensuring it can deliver next-generation products when needed, including HBM4. HBM4 is critical to AI because it helps break down the memory wall by enabling significantly higher bandwidth with low power consumption, doubling the speed of HBM3 versions and offering approximately 75% more memory capacity. The impact on AI should be substantial.
Catalysts for SK Hynix's share price include robust demand for HBM products, which are sold out through 2027, and strong pricing power. HBM memory pricing is up by high double digits, supporting growth for SK Hynix and Micron, and is expected to remain elevated for the foreseeable future. SK Hynix removed pricing caps that had been in place, allowing it to capture maximum upside while the HBM shortage persists.
Micron, however, is not sitting idly by and allowing SK Hynix to gain share. It is actively expanding its own manufacturing capacity and HBM4 technology, including a major HBM4 hub in Japan, and realigning its die process to more closely align with NVIDIA standards so it can capture a larger share.
The likely outcome is that Micron breaks SK Hynix's near-monopoly with NVIDIA while cementing its own position in the industry. Micron is also capitalizing on its unique position as the U.S.'s only domestic memory manufacturer, expanding facilities in Idaho and New York.
Micron May Experience Headwinds—Sell-Side Data Says Buy the Dip
While Micron’s outlook is equally bullish, there is potential for its share price to lag SK Hynix, at least in the near to mid-term. The risk is that investors will take profits and reduce their holdings of MU in order to shift capital into SK Hynix. In this scenario, the best case is that MU’s stock price moves sideways within a range near existing highs, while the worst case is that it experiences a more meaningful correction than it already has. Down more than 20% from its post-earnings highs as of early July, Micron’s share price could shed another 30% before hitting solid support.
The caveat is that sell-side interest, as reflected in analyst and institutional data, remains very bullish on Micron, with a triple-strength tailwind in place. MarketBeat data reveal 38 analysts covering the name, a 92% Buy-side bias in the Buy consensus, and more than 35% upside potential relative to early-July support targets, with coverage rising, sentiment firming, and price targets trending higher over the near-, mid-, and long-term. It is not the consensus figures that matter but the trends, which are pointing to the higher end of the range and suggest more than 100% upside is still ahead.
Micron’s stock price action reflects market strength, with a bullish MACD convergence. The MACD, or moving average convergence/divergence, measures market strength and momentum and, in this case, shows a strong, strengthening market that is more likely to retest its recent highs and move higher than continue lower. The only question is timing, and that may come by year’s end. Upcoming catalysts include Micron’s fiscal Q4 earnings release in September, along with reports from NVIDIA and Advanced Micro Devices (NASDAQ: AMD), which are expected to confirm that AI demand continues to grow.
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