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TeraWulf Inc (WULF)
NASDAQ:WULF
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TeraWulf Inc
(NASDAQ:WULF)
Rating:53Neutral
Price Target:
$4.00
▲(6.95%Upside)
Positive Factors
Analyst Recommendation
Analyst reiterates a 'Buy' recommendation for WULF and raises the price target to $6.50, reflecting confidence in the company's growth prospects.
Business Expansion
WULF is focused on delivering a signed 60MW HPC capacity, which is expected to lead to opportunities for additional capacity or improve its position among enterprise customers.
Strategic Partnership
WULF announced it has signed a deal with Core42, a G42 company that specializes in sovereign cloud, AI infrastructure, and digital services.
Negative Factors
Cost Challenges
Power costs were reported to be significantly above the average, posing a challenge to the company's financial performance.
Cost Implications
The mitigation of the mining services relationship with Beowulf might lead to higher costs in the near term.
Financial Performance
WULF reported 1Q25 sales and EBITDA figures that missed previous estimates due to lower realized hash rate and spiked power prices.
TeraWulf Inc (WULF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend YieldN/A
Average Volume (3M)42.46M
Price to Earnings (P/E)―
Beta (1Y)2.71
Revenue Growth31.85%
EPS Growth-34.27%
CountryUS
Employees12
SectorFinancial
Sector Strength77
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.16
Shares Outstanding384,584,000
10 Day Avg. Volume41,680,040
30 Day Avg. Volume42,459,600
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.63
Price to Sales (P/S)0.00
P/FCF Ratio-0.69
Enterprise Value/Market Cap0.14
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit3.41
Enterprise Value/Ebitda-4.86
Forecast
1Y Price Target
$5.79Price Target Upside54.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
TeraWulf Inc Business Overview & Revenue Model
Company DescriptionTeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. It develops, owns, and operates bitcoin mining facility sites. The company operates two bitcoin mining facility sites located in New York and Pennsylvania. TeraWulf Inc. is based in Easton, Maryland.
How the Company Makes MoneyTeraWulf Inc generates revenue primarily through the mining of bitcoin. The company earns income by participating in the bitcoin network as a miner, where it validates transactions and adds them to the blockchain. In return for its services, TeraWulf receives bitcoin as a reward, which can then be held as an asset or sold on the market for revenue. The company benefits from partnerships with energy providers that offer renewable energy solutions, allowing TeraWulf to maintain lower operational costs and operate sustainably, which can be a competitive advantage in the energy-intensive cryptocurrency mining industry.
TeraWulf Inc Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: 13.33%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
TeraWulf's first quarter showed strong operational progress and strategic expansion in its High Power Compute business, with significant milestones achieved in energizing new facilities and securing additional capacity. However, the company faced financial challenges with increased costs and negative EBITDA due to market conditions and expansion costs. While the strategic outlook is positive, the financial results indicate a need for careful cost management and successful project financing to support growth.Q1-2025 Updates
Positive Updates
Successful Energization of Miner Building 5
TeraWulf successfully energized Miner Building 5 at the Lake Mariner facility, bringing total operational capacity to 245 megawatts and achieving a self-mining hash rate of 12.2 exahash with fleet efficiency of 18 joules per terahash.
High Power Compute Hosting Platform Progress
WULF Compute's liquid-cooled infrastructure is scaling to meet AI demand, with the WULF Den operational and expected revenue generation in Q2. CB-1 and CB-2 are set to go live in Q3 and Q4, respectively.
Approval for Additional Capacity
NYISO approved an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 500 megawatts, with plans to request an additional 250 megawatts to reach 750 megawatts.
Positive Early Feedback on Project Financing
Early feedback from potential lenders for the 72.5 megawatt Core42 buildout has been positive, with execution expected mid-year with advisors JPMorgan and Morgan Stanley.
Negative Updates
Negative EBITDA and Increased Costs
The first quarter of 2025 presented challenging market conditions for Bitcoin Mining operations, resulting in negative EBITDA of $4.7 million, down from positive $2.5 million in 4Q '24, due to increased costs from High Power Compute hosting expansion.
Bitcoin Mining Output Decrease
Self-mined 372 bitcoin in Q1 2025, a 12% decrease from 423 bitcoin in Q4 2024, with GAAP revenues flat at $34.4 million compared to $35 million in Q4 2024.
Significant Power Cost Increase
Realized power prices increased by 37% from $0.509 per kilowatt hour in Q4 '24 to $0.801 per kilowatt hour in Q1 '25, impacting cost of energy per bitcoin mined, which rose to $66,084 from $46,328.
Higher SG&A Expenses
SG&A expenses increased from $32.3 million in Q4 '24 to $50.1 million in Q1 '25, primarily due to stock-based compensation, despite a decrease in adjusted SG&A from $15.5 million to $11.5 million.
Net Loss Increase
GAAP net loss in Q1 '25 was $61.4 million, compared to a net loss of $29.2 million in Q4 '24.
Company Guidance
During the TeraWulf 2025 First Quarter Earnings Conference Call, the company provided several key metrics and guidance for the upcoming quarters. TeraWulf successfully energized Miner Building 5, increasing their operational capacity to 245 megawatts and achieving a self-mining hash rate of 12.2 exahash with fleet efficiency of 18 joules per terahash. Despite extreme weather causing temporary spikes in power prices, the company returned to positive EBITDA by April. They plan to focus on scaling their High Performance Compute (HPC) platform, with buildings like the WULF Den set to generate revenues in Q2, followed by CB-1 and CB-2 going live in Q3 and Q4, respectively. TeraWulf received approval for an additional 250 megawatts of capacity at Lake Mariner, bringing the total to 500 megawatts, with plans to request an additional 250 megawatts. The company remains on track to execute project financing for their 72.5 megawatt Core42 buildout mid-year, with anticipated strong interest from potential lenders. In terms of financials, the company reported self-mining 372 bitcoin in Q1 with GAAP revenues of $34.4 million, and a GAAP net loss of $61.4 million. They anticipate power costs to decrease, estimating a cost of $47,500 per bitcoin mined for the remainder of 2025. Additionally, they plan to optimize their self-mining platform, deliver on Core42 buildings, lease additional HPC hosting capacity, and close project financing as key near-term priorities.TeraWulf Inc Financial Statement Overview
Summary
TeraWulf Inc. faces challenges with profitability and leverage, as seen in their income and balance sheet metrics. Revenue growth is inconsistent, and operational inefficiencies persist. While cash flow shows some improvements, the high capital expenditures and negative free cash flow remain concerns. The company needs to improve its profitability and manage its debt levels to stabilize its financial position.Income Statement
TeraWulf Inc. shows fluctuating revenue with significant losses. The TTM revenue decreased from the previous year, indicating a negative trend. Gross profit margin is reasonable, but EBIT and net profit margins are deeply negative, reflecting operational inefficiencies and high costs relative to revenue. These factors contribute to a moderate income statement score.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is high, indicating leverage risk. Stockholders' equity has decreased over the years, but the equity ratio remains decent. The balance sheet reflects stability risks due to high liabilities relative to assets. However, cash and short-term investments provide some liquidity support.50
Neutral
Cash Flow
Operating cash flow is positive in the TTM, showing improvement, but free cash flow remains negative due to high capital expenditures. The ratio of operating cash flow to net income indicates better cash generation compared to reported earnings, though free cash flow struggles to cover net income losses.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 132.02M | 140.05M | 69.23M | 15.03M | 12.74M | 17.62M | Gross Profit |
| 59.27M | 77.44M | 41.91M | 3.95M | 12.69M | 5.40M | EBIT |
| -117.64M | -76.22M | -29.42M | -42.29M | -43.40M | -863.68K | EBITDA |
| -65.98M | -17.41M | 161.00K | -38.83M | -43.35M | -223.63K | Net Income Common Stockholders |
| -124.22M | -72.42M | -73.42M | -70.22M | -95.68M | -813.56K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 218.16M | 274.06M | 54.44M | 1.28M | 46.45M | 3.17M | Total Assets |
| 841.16M | 787.51M | 378.11M | 317.69M | 264.91M | 16.88M | Total Debt |
| 491.85M | 491.25M | 124.47M | 129.31M | 95.71M | 2.82M | Net Debt |
| 273.69M | 217.18M | 70.03M | 128.03M | 49.25M | 1.86M | Total Liabilities |
| 670.79M | 543.07M | 155.62M | 199.93M | 141.73M | 4.62M | Stockholders Equity |
| 170.38M | 244.44M | 222.49M | 117.75M | 123.18M | 12.26M |
| Cash Flow | Free Cash Flow | ||||
| -151.56M | -292.36M | -70.91M | -106.92M | -133.17M | -975.05K | Operating Cash Flow |
| 48.65M | -24.42M | 4.26M | -34.07M | -24.10M | -477.03K | Investing Cash Flow |
| -198.81M | -91.16M | -78.01M | -94.05M | -201.41M | 7.58K | Financing Cash Flow |
| 268.36M | 335.21M | 119.87M | 89.98M | 271.97M | -190.03K |
TeraWulf Inc Technical Analysis
Neutral
3.74
Price Trends
3.43
Positive
3.61
Positive
4.78
Negative
Market Momentum
0.13
Positive
47.28
Neutral
8.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WULF, the sentiment is Neutral. The current price of 3.74 is below the 20-day moving average (MA) of 4.02, above the 50-day MA of 3.43, and below the 200-day MA of 4.78, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 8.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WULF.
TeraWulf Inc Risk Analysis
TeraWulf Inc disclosed 47 risk factors in its most recent earnings report. TeraWulf Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TeraWulf Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $16.17B | 10.98 | 9.72% | 4.07% | 11.95% | -10.49% | |
64 Neutral | $789.30M | 20.79 | 4.20% | 0.54% | 0.41% | 20.80% | |
61 Neutral | $485.88M | 8.82 | -23.29% | ― | 53.68% | -265.12% | |
59 Neutral | $2.52B | ― | -3.39% | ― | 130.86% | -22.83% | |
57 Neutral | $500.74M | 281.65 | 1.33% | ― | 174.88% | -97.01% | |
53 Neutral | $1.44B | ― | -56.12% | ― | 31.85% | -34.27% | |
51 Neutral | $1.27B | ― | -18.49% | ― | -0.65% | -808.88% |
* Financial Sector Average
Performance Comparison
WULF
TeraWulf Inc
3.74
-0.48
-11.37%
AC
Associated Capital Group
37.34
4.75
14.58%
BTBT
Bit Digital
2.33
-0.10
-4.12%
CIFR
Cipher Mining
3.79
-0.48
-11.24%
IREN
Iris Energy
10.47
-2.16
-17.10%
FUFU
BitFuFu
3.07
-2.13
-40.96%
TeraWulf Inc Corporate Events
M&A TransactionsBusiness Operations and Strategy
TeraWulf Inc Acquires Beowulf Electricity & Data LLC
Positive
May 27, 2025
On May 21, 2025, TeraWulf Inc. acquired 100% of the membership interests of Beowulf Electricity & Data LLC and its affiliates for approximately $52.4 million. This strategic acquisition simplifies TeraWulf’s corporate structure, consolidates resources, and eliminates a related-party relationship, enhancing transparency and governance. The transaction is expected to strengthen TeraWulf’s vertical integration and energy expertise, improve access to capital markets, and expand investor appeal by enabling broader engagement with institutional investors. The acquisition also includes the transition of 94 employees from Beowulf E&D to TeraWulf, and the termination of an existing services agreement, aligning with TeraWulf’s long-term growth strategy.
The most recent analyst rating on (WULF) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on TeraWulf Inc stock, see the WULF Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
TeraWulf Inc Reports Q1 2025 Financial Results
Neutral
May 9, 2025
On May 9, 2025, TeraWulf Inc. announced its financial results for the first quarter of 2025, highlighting a decrease in revenue by 19% year-over-year to $34.4 million due to challenges like the April 2024 bitcoin halving and increased network difficulty. Despite these challenges, the company increased its self-mining capacity by 52.5% year-over-year to 12.2 EH/s and held $219.6 million in cash and bitcoin holdings as of March 31, 2025. TeraWulf also energized Miner Building 5, increasing total capacity to 245 MW, and initiated a process to secure additional high-performance computing customers, targeting 200-250 MW operational capacity by the end of 2026.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.