Shares of TeraWulf Inc (NASDAQ:WULF) are surging Monday morning. Investors are reacting to a significant financing update and a broader crypto market rally.

The entered a Delayed-Draw Bridge Credit Agreement on Monday. The deal involves subsidiaries Raylan Finance LLC and Raylan Data LLC. Morgan Stanley Senior Funding, Inc. serves as the administrative agent, according to Benzinga Pro.

The agreement provides a 364-day $500 million senior secured bridge facility. TeraWulf intends to use these proceeds to finance the construction and development of the Company’s data center facility in Hawesville, Kentucky.

Bitcoin Price Triggers Sector Rally

The stock is also benefiting from Bitcoin (CRYPTO: BTC) briefly topping $74,000 on Monday. This milestone triggered a sector-wide rally for cryptocurrency miners.

Recent data also shows short interest in TeraWulf decreased from 95.57 million to 93.59 million shares. Currently, 27.4% of the company’s float is sold short. Based on average volume, it would take short sellers 3.48 days to cover their positions.

Wall Street remains optimistic despite recent earnings misses. Cantor Fitzgerald issued a high price forecast of $24 on Feb. 27. The consensus price forecast among 18 analysts sits at $14.26.

Upcoming Earnings Expectations

TeraWulf is scheduled to report first-quarter earnings on May 8. Analysts estimate a loss per share of $0.18 on revenue of $39.80 million. In the fourth quarter, the company reported a loss of $0.29 per share, missing the $0.15 estimate.

WULF Price Action: TeraWulf stock was up 10.60% at $16.22 at the time of publication on Monday, according to Benzinga Pro data.

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