• The Kentucky Public Service Commission has approved TeraWulf’s retail electric service agreement.
• It would provide up to 482 MW of power at its Justified Data Campus in Hancock County, Kentucky.
• TeraWulf estimated site development and initial data hall investment to be $4 billion to $4.5 billion.

Shares of TeraWulf Inc. (WULF) traded flat in morning trade on Monday after the company announced that it received approval from the Kentucky Public Service Commission for its retail electric service agreement for up to 482 megawatts (MW) of power at the Justified Data Campus in Hancock County, Kentucky.

The company estimated that it would need to invest around $4 billion to $4.5 billion for site development and the first data halls, not including additional investment by customers in computing equipment and related infrastructure. It said that the estimate was based on current expected development costs of approximately $10 million to $12 million per MW of critical IT load. 

WULF stock edged 0.3% higher in morning trade. On Stocktwits, the retail sentiment around WULF remained in the ‘bullish’ zone, while chatter around it stayed at ‘high’ levels over the past day.

Costs Borne By TeraWulf

The approved structure would make TeraWulf responsible for market transmission, delivery, and other costs associated with serving its load, as well as customer-specific infrastructure costs and significant credit support obligations, the company said. 

The Commission's order said that the proposed agreement "provides adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service."

Former Smelter Site

The Justified campus was being built at the former Century Aluminum Hawesville facility, which had around 482 MW of existing transmission capacity after the aluminum smelter shutdown. The company said the Commission acknowledged the economic advantages of the project, including projected capital management jobs and growth to the local tax base.

The Commission said that “the proposed reuse of an existing industrial site, anticipated capital investment, employment, and additional tax base provide further support for the public-interest benefits asserted in the record.”

TeraWulf makes part of its revenue by providing hash computation services (HPC) to a mining pool operator, using its fleet of application-specific integrated circuit, or ASIC, miners to verify transactions on the Bitcoin (BTC) network. 

Read also: CRCL Stock Faces September Catalysts: Bernstein Sees $140 Target, Susquehanna Says ‘More Competitors Are Showing Up’

For updates and corrections, email newsroom[at]stocktwits[dot]com.<