TeraWulf CEO Cheered New York’s Data Center Freeze, His Stock Fell 7%.
TeraWulf Chief Executive Paul Prager welcomed New York’s new information heart moratorium as a win for the corporate. Investors disagreed, sending WULF shares down about 7% the identical day.
The divide adopted Governor Kathy Hochul’s govt order, which paused permits for big new information facilities.
Why New York Paused Data Center Development
Hochul signed the order on July 14, creating the primary statewide freeze on new hyperscale information facilities. The state halted discretionary permits not already deemed complete.
During the pause, regulators will put together a Generic Environmental Impact Statement (GEIS) to evaluate impacts on power demand, water use, and air quality.
The order targets the trade’s heavy energy and water wants. Hochul additionally plans to hunt the repeal of gross sales tax exemptions for big information facilities throughout the state.
“New York has at all times been on the forefront of innovation and alter, however we’ve additionally at all times assured that New Yorkers profit. As information heart growth threatens to hike up utility payments, deplete our pure sources, and create uncertainty for New Yorkers, it’s my duty to take motion and lead,” Governor Hochul stated.
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Why TeraWulf’s Stock and Its CEO Diverged
TeraWulf runs the Lake Mariner campus in New York and is creating a second web site at Lake Hawkeye, per its sites web page. The firm is shifting from Bitcoin (BTC) mining towards synthetic intelligence and high-performance computing (HPC), a pivot shared by other miners.
Prager argued that the order rewards permitted, power-secured tasks over speculative ones. He famous that Lake Mariner is operational, and its Fluidstack and Google expansions are totally permitted.
“Lake Hawkeye is a multi-year growth, and we’re additionally evaluating on-site energy which aligns immediately with the Governor’s priorities for brand new technology. A win-win for New York and WULF,” he said.
Despite that framing, WULF shares closed down 7.08% at $19.41 on July 14.
For now, Prager and traders learn the identical order in another way. The full impression on TeraWulf’s New York pipeline will change into clearer because the assessment progresses.
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