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UBS set its price target for the company at $24, which is well above the current trading price of roughly $16. This move suggests confidence in the company's plan to use its power capacity for AI data centers rather than just mining Bitcoin. Redburn Partners also set a target this week at $15, which is much closer to where the stock sits now. The average target across all analysts who follow the company is about $35.
Source: UBS
The U.S. Senate voted against advancing a major bill designed to create clearer rules for the crypto industry. This is a significant hurdle for companies like TeraWulf that rely on digital assets, as it means the industry will likely continue to operate under a patchwork of existing regulations rather than a single, clear framework.
While TeraWulf is currently shifting its focus toward building data centers for AI, it still earns most of its money from mining Bitcoin. A lack of clear federal rules can make it harder for crypto-linked businesses to work with traditional banks or plan long-term investments. This vote suggests that the path to a more stable regulatory environment in the U.S. remains blocked for now.
Source: Reuters
State regulators in Kentucky have approved a power agreement that secures up to 482 megawatts of electricity for the company’s Justified Data Campus. This is a major step in locking down the power needed to run large-scale computing facilities.
For TeraWulf, the value of the business is increasingly tied to its ability to secure massive amounts of electricity for AI data centers rather than just mining Bitcoin. This approval provides the regulatory green light to scale up its infrastructure in Kentucky, which helps the company move toward its goal of becoming a major provider for energy-hungry AI firms.
Source: GlobeNewsWire
CME Group plans to launch futures contracts for AI computing power this October. These contracts act like insurance policies that allow companies to buy or sell computing capacity at a set price in the future, similar to how airlines lock in fuel costs or farmers lock in crop prices. This turns AI processing power into a tradable commodity.
This is a helpful development for TeraWulf as it pivots from mining Bitcoin to hosting AI data centers. While Bitcoin prices are easy to track and hedge, the market for AI hosting has been more opaque. Having a standardized way to trade and price computing power could make TeraWulf's future revenue more predictable and help the company secure better terms as it builds out its new facilities.
Source: CNBC
The headline numbers were mixed, with revenue of $44.8 million falling short of the $50 million analysts expected. However, the mix of that revenue is shifting fast. About 71 percent of sales now come from hosting high-performance computing, the specialized servers used for AI, rather than just mining Bitcoin. This is a key part of the plan to move away from the volatile swings of crypto toward more stable, long-term contracts.
The biggest news is a 20-year lease with Anthropic, a major AI developer, which is projected to bring in $19 billion over its life. To support this growth, the company is selling its stake in the Abernathy joint venture for $530 million to focus entirely on its own sites. While the quarterly loss was wider than expected, the focus for long-term owners is on whether the company can successfully turn its cheap power into a high-margin home for AI giants.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has missed analyst profit targets for eight straight quarters. This suggests the business is burning cash much faster than expected as it pivots from mining to data centers.
| Expectation | |
|---|---|
| EPS | $-0.17 |
| Revenue | $64M |