AI Infrastructure Stocks Rise as Rebound From Steep Selloff Extends: Cipher Digital Jumps 8%, IREN Climbs 7%, TeraWulf Gains 5%

AI infrastructure names are extending their rebound from a steep selloff. Gains are spread across former Bitcoin miners that now build data centers for AI and high-performance computing (HPC) tenants. TeraWulf (NASDAQ:WULF) stock is at $12.52, up 5% as the session opens, a gain that starts to repair a punishing month for the shares.

Meanwhile, Cipher Digital (NASDAQ:CIFR) stock is at $8.31, up 8%, the strongest gain of the three. IREN Limited (NASDAQ:IREN) stock is at $27.22, up 7%, outpacing TeraWulf but trailing Cipher Digital. Shared business models keep the three stocks moving in together.

For a sector check, the CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) is up 6%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.4%, leaving the AI infrastructure group ahead of the broad market.

Rebound Extends After a Brutal Month for TeraWulf

This move in TeraWulf shares extends the prior session’s rebound after a steep decline. TeraWulf stock is down 20% over the past month, leaving plenty of ground to recover.

Over the weekend, TeraWulf chief executive Paul Prager pushed back on warnings that partially built data centers will leave computing capacity stranded. He said TeraWulf secures power, fixed-price construction contracts, long-term tenants and financing before it builds, writing, “We may move dirt early, but we don’t build on spec.” Late last week, TeraWulf expanded its senior secured revolving credit facility, adding borrowing capacity for its AI data center build-out.

Contracted AI Campuses Anchor the Group’s Recovery

TeraWulf and Cipher Digital are converting from Bitcoin mining to building data center capacity for AI and HPC tenants (we highlighted seven suppliers behind this expansion, from power to cooling, in a free report you can grab here). A 20-year lease with Anthropic for 401 megawatts at the Justified Data Campus in Kentucky anchors TeraWulf’s pipeline. That deal represents about $19 billion in contracted revenue, with initial delivery slated for the second half of 2027.

Cipher Digital delivered its first HPC capacity at Black Pearl ahead of schedule, and rent has started there, the bull case; bears note its latest quarterly revenue missed estimates as losses widened. IREN bulls point to its AI cloud deals with major tech customers, while bears flag a revenue miss and an impairment on retired mining hardware. Both are big holdings in the CoinShares fund, with Cipher Digital as its largest disclosed weighting at 18.1% of net assets and IREN at 10% as of June 30.

The bull case for TeraWulf rests on its financing-first approach filling its sites with contracted tenants on schedule. Lake Mariner, TeraWulf’s New York campus, has 336 megawatts under construction, and the larger credit line gives the company more room to fund that work. Management targets about $1.5 billion in average annual net operating income at stabilization, a goal that depends on those buildings reaching rent on time.

Against that, TeraWulf’s unfinished sites take time to turn into lease revenue, and the larger credit line adds obligations. Each campus delay would stretch the gap between spending and rent.

TeraWulf’s No-Spec Pledge Meets Its Build-Out Timeline

The next test for TeraWulf is whether Justified construction stays on schedule for Anthropic, since contracted revenue begins with delivery. Any slippage could undercut its financing-first pitch.

IREN and Cipher Digital shares face a test of holding their gains after leading this leg. Traders can watch for whether the CoinShares fund keeps pace with its biggest components as a sign the buying is spreading; if it fades, the rebound may be narrower than it looks.

With a quiet broad market, TeraWulf, Cipher Digital and IREN shares are trading on the AI data center story alone. Investors weighing their exposure should size their holdings carefully after a month of heavy selling.

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