Company Story
2020 - TeraWulf Inc. founded by Paul Graham and Daniel Becker
2021 - Raised $23.5 million in funding from investors
2022 - Listed on the Nasdaq Capital Market under the ticker symbol WULF
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TeraWulf Inc.is based in Easton, Maryland. Show Full description
1. Company Snapshot
1.a. Company Description
TeraWulf 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. Show Full description
1.b. Last Insights on WULF
The recent 3-month performance of TeraWulf Inc. was negatively impacted by a series of bearish signals and concerns. A Death Cross formation in March indicates a potential decline in the stock's price. Additionally, Rosenblatt Securities analyst Chris Brendler lowered the price target from $10 to $4, citing tough Bitcoin economics and doubts over AI growth plans. The lack of clarity on Core42's power extension before March 31, 2025, creates significant downside risk, despite management's confidence in finding other customers. Furthermore, the absence of FY 2025 financial guidance and the lack of concrete expansion plans beyond the Cayuga site integration raise questions about the company's ability to scale as projected.
1.c. Company Highlights
2. TeraWulf's Q3 2025 Earnings: A Transformative Quarter
TeraWulf reported a 6% quarter-over-quarter increase in GAAP revenues to $50.6 million, driven by $7.2 million of HPC lease revenue recognized at WULF Den and CB-1. The company's GAAP cost of revenue decreased by 22% to $17.1 million. However, the actual EPS came out at '-0.07', missing estimates at '-0.04'. Operating expenses increased 28% quarter-over-quarter to $4.5 million, primarily due to increased staffing levels at Lake Mariner to support the company's entry into HPC leasing.
Publication Date: Nov -18
📋 Highlights
- 10-Year Fluidstack Agreement:: Secured $670M average annual revenue and $565M net income via a 10-year HPC hosting deal backed by Google at Lake Mariner.
- $3.2B Senior Secured Financing:: Closed $3.2B in credit-enhanced financing (7.75% senior notes) to fund Lake Mariner’s high-power compute build-out.
- First HPC Revenues Recognized:: Generated $7.2M HPC lease revenue in Q3 from WULF Den and CB-1, with CB-2 on track for year-end completion.
- Abernathy JV Expansion:: Joint venture with Fluidstack and Google in Texas adds 168MW HPC capacity, scalable to 600MW with $1.3B Google credit support.
- Bitcoin Mining Decline:: Bitcoin self-mining dropped 22% QoQ to 377 units (4/day), reflecting strategic shift toward HPC leasing and infrastructure.
Operational Highlights
The third quarter marked an operational inflection point for TeraWulf as the company recorded its first HPC revenues with lease commencement at WULF Den and CB-1. The company remains on track to deliver CB-2 near year-end, subject to tenant fit-out requests. As Nazar Khan noted, "We've completed the full cycle of site preparation, design, engineering, financing, and construction, which has given us a better understanding of our capacity and what's required for each phase."
Growth Prospects and Valuation
Analysts estimate next year's revenue growth at 123.8%. To understand what's priced in, we can look at the company's valuation metrics. The P/S Ratio stands at 25.76, indicating a relatively high valuation compared to revenues. The EV/EBITDA ratio is -9.63, suggesting that the company's enterprise value is not justified by its EBITDA. The ROE is -269.71%, indicating significant losses.
Financing and Liquidity
TeraWulf closed over $4.2 billion in capital markets transactions, including $3.2 billion of 7.75% BB-rated senior secured notes due 2030 and $1.025 billion of 0% convertible notes due 2032. The company's pro forma liquidity totals over $1 billion, providing cash for important initiatives such as the Abernathy JV with Fluidstack and the acquisition of key sites in the pipeline.
Outlook and Challenges
3. NewsRoom
Should Investors Exit WULF Stock at a High P/S Multiple of 18.24x?
Dec -02
WULF vs. CLSK: Which Bitcoin Miner Has Better Upside Potential?
Nov -28
TeraWulf CEO: Google has an in-house expert at every stage of value chain
Nov -26
TeraWulf Announces Mandatory Conversion Date for Series A Convertible Preferred Stock
Nov -25
Do Rising Costs Raise a Red Flag Despite WULF's Revenue Growth?
Nov -24
TeraWulf: Recent Dip Doesn't Change The Long-Term AI Story
Nov -19
TeraWulf: Rich AI Prospects In 2026/2027 - Dip Buying Opportunity
Nov -18
3 Crypto Mining Stocks To Buy Now
Nov -14
4. Business Breakdown
4.a. Revenues by Country
4.b. Revenues by Segment
5. Expected revenues mid-term growth (23.43%)
6. Segments
Digital Currency Mining
Expected Growth:
TeraWulf Inc.'s 23.43% growth in digital currency mining is driven by increasing adoption of cryptocurrencies, rising Bitcoin prices, and improved mining efficiency. Additionally, the company's focus on sustainable energy sources and low-cost operations contribute to its growth. Furthermore, the increasing demand for digital currencies and the limited supply of mining capacity also support the segment's growth.
7. Detailed Products
Nautilus Cryptomine Facility
A fully integrated, turn-key cryptocurrency mining facility designed to provide a reliable and efficient mining operation.
Lake Mariner Data Center
A state-of-the-art data center providing high-density, high-efficiency, and highly secure infrastructure for cryptocurrency mining and other data-intensive applications.
TeraPool Cryptocurrency Mining Pool
A cryptocurrency mining pool that allows miners to combine their computing power to increase their chances of solving complex mathematical equations and earning cryptocurrency rewards.
TeraWulf Mining Services
A comprehensive suite of mining services, including mining pool management, mining equipment procurement, and mining facility operations.
8. TeraWulf Inc.'s Porter Forces
Forces Ranking
Threat Of Substitutes
TeraWulf Inc. faces moderate threat from substitutes due to the availability of alternative energy sources.
Bargaining Power Of Customers
TeraWulf Inc. has a diverse customer base, reducing the bargaining power of individual customers.
Bargaining Power Of Suppliers
TeraWulf Inc. relies heavily on a few key suppliers, giving them significant bargaining power.
Threat Of New Entrants
TeraWulf Inc. operates in a highly regulated industry, making it difficult for new entrants to join the market.
Intensity Of Rivalry
TeraWulf Inc. operates in a competitive market, but the intensity of rivalry is mitigated by the company's strong market position.
9. SWOT Analysis
10. Capital Structure
10.a. Balance Sheet
10.b. Weighted Average Cost of capital
| Value | |
|---|---|
| Debt Weight | 35.71% |
| Debt Cost | 23.60% |
| Equity Weight | 64.29% |
| Equity Cost | 23.60% |
| WACC | 23.60% |
| Leverage | 55.54% |
11. Quality Control: TeraWulf Inc. passed 1 out of 9 key points
12.a Historical Valuation
12.b Price/Earnings Ratio
12.c Margin Valuation
12.d Peers Valuation
Peers Group Analysis
Siebert Financial
Value: 7.0
Growth: 6.9
Quality: 7.2
Yield: 0.0
Momentum: 7.0
Volatility: 2.0
1-Year Total Return ->
A-Mark Precious Metals
Value: 6.2
Growth: 5.1
Quality: 3.7
Yield: 8.0
Momentum: 0.5
Volatility: 4.7
1-Year Total Return ->
TeraWulf
Value: 6.0
Growth: 4.3
Quality: 3.5
Yield: 5.0
Momentum: 9.0
Volatility: 0.3
1-Year Total Return ->
Greenidge Generation Holdings
Value: 9.8
Growth: 4.0
Quality: 5.9
Yield: 0.0
Momentum: 3.5
Volatility: 0.3
1-Year Total Return ->
Bitcoin Depot
Value: 6.3
Growth: 2.1
Quality: 3.9
Yield: 0.0
Momentum: 10.0
Volatility: 1.0
1-Year Total Return ->
Bit Digital
Value: 7.4
Growth: 6.4
Quality: 3.5
Yield: 0.0
Momentum: 5.0
Volatility: 0.7
1-Year Total Return ->