Key Highlights

● TeraWulf (WULF) closed at $15.12 on Monday, down 3.94% from $15.74, despite a fresh Buy rating from a brokerage.

● Jones Trading reinstated coverage of the stock with a Buy rating on Monday, according to a market summary.

● The company began as a Bitcoin miner and now hosts high-performance computing for AI customers, including agreements with Fluidstack.

● Applied Digital fell 6.55% and Core Scientific fell 4.73%, so data-center names moved down together on Monday.

TeraWulf (NASDAQ:WULF) closed at $15.12 on Monday, September 28, down 3.94% from $15.74, even though Jones Trading reinstated coverage of the stock with a Buy rating, according to a market summary. Reinstating coverage means a brokerage resumes publishing research on a company after a gap. On a calmer day, that might have helped the shares; on Monday, the wider market pulled the other way.

From Bitcoin Mining to AI Hosting

TeraWulf began as a bitcoin miner and has been expanding into hosting high-performance computing for AI customers. The company's investor site lists hosting agreements with Fluidstack of more than 200 megawatts on 10-year terms, followed by a further 160-megawatt Lease at its Lake Mariner site. That places it in the AI infrastructure group, where investors are betting that Demand for power-hungry computing capacity will keep growing.

The same group carries heavy Capital needs. Building and powering data centers takes large upfront spending, much of it financed with debt, while the returns arrive over many years. Investors therefore value these companies on distant cash flows, which is why they are so sensitive to interest rates. When comparing companies in the group, investors often track how much power capacity is contracted with customers versus actually built, since only built capacity earns revenue.

Sector Pressure Outweighed the Rating

Applied Digital (NASDAQ:APLD) fell 6.55% and Core Scientific (NASDAQ:CORZ) fell 4.73%, so the pattern was sector-wide and not specific to TeraWulf. Rates did much of the damage. The 10-year Treasury Yield touched its highest level since 2007, and the 30-year hit its highest since 2004, which weighed on richly valued shares. The Federal Reserve raised its policy rate to 3.75% to 4.00% on September 16, and futures now price a majority chance of another increase in October.

The pressure was not confined to data-center stocks. Wall Street ended lower across the board: the S&P 500 dropped 59.72 points to 7,683.69, the Dow gave up 347.11 points to 51,481.51 and the Nasdaq Composite fell 248.34 points to 26,820.38. Investors also had to weigh the reports of an OpenAI Training pause, which raised questions about how quickly demand for AI computing capacity will grow, the very demand that hosting companies such as TeraWulf are built to serve.

What to Watch for TeraWulf

For TeraWulf, the key question is whether the AI-hosting story can reassert itself once bond markets settle. Company updates on hosting contracts, power capacity and construction progress would be the clearest signals, and investors will note whether other brokerages follow Jones Trading in giving the stock fresh coverage.

Macro data will steer the week. Tuesday brings JOLTS and consumer confidence, Wednesday the PCE Inflation reading, Thursday the ISM Manufacturing survey and Friday the September employment report. Micron (NASDAQ:MU) also reports after the close on Wednesday, September 30, and its comments on AI hardware demand may set the tone for AI infrastructure names.