TeraWulf: The Thesis Is Stronger Now

TeraWulf is upgraded from Hold to Buy as the stock drops to $15, making valuation more attractive despite ongoing risks. WULF has rapidly shifted from bitcoin mining to HPC leasing, now generating over 70% of revenue from AI infrastructure contracts. Contracted revenue has doubled to $27 billion, with 839 MW leased and a 2.1 GW pipeline, but significant capex and dilution risks remain. I see upside potential if execution improves, but await evidence of cash burn reduction and project delivery before considering a Strong Buy.

When I wrote about TeraWulf ( WULF ) in July, I gave the stock a Hold rating. I found the transformation from bitcoin mining to AI and HPC infrastructure interesting but at a stock price of