TeraWulf (WULF), a Bitcoin (BTCUSD) mining and data center company, saw shares soar last week following a transformative deal backed by Alphabet (GOOGL). The company has signed two 10-year high-performance computing (HPC) colocation agreements with Fluidstack, a premier artificial intelligence (AI) cloud platform. Worth roughly $3.7 billion with optional extensions lifting the total to $8.7 billion, the agreements leverage TeraWulf’s Lake Mariner campus’ 200 megawatts (MW) of capacity.
Google is underwriting $1.8 billion in Fluidstack’s lease obligations and, in exchange, will acquire about 41 million shares of WULF stock, equating to an approximately 8% equity stake. While analysts have raised their price targets as high as $13, the deal signals TeraWulf’s pivot into AI infrastructure and adds credibility.
So, does this news make WULF stock worth buying now?
Headquartered in Easton, Maryland, TeraWulf is a digital asset technology company that develops, owns, and operates environmentally sustainable Bitcoin mining facilities specializing in high-performance computing hosting. TeraWulf’s market capitalization stands at approximately $3.5 billion.
WULF stock has staged a remarkable rally of late, surging 59% in a single day on Aug. 14 following the announcement of the AI hosting deal with Fluidstack backed by Google, triggering a dramatic rebound from its April low of $2.06. The momentum extended into the next trading day, adding further gains and leading shares to hit a high of $9.23 on Aug. 15.
WULF stock has delivered an impressive 78% return year-to-date (YTD). Over the past month alone, the stock has surged 96% amid its strategic focus toward AI.
www.barchart.com
TeraWulf currently trades at a premium compared to the sector median at 24.37 times forward sales.
TeraWulf released its second-quarter 2025 financial results on Aug. 8, showcasing a strong rebound with revenue surging 33.9% year-over-year (YOY) to $47.6 million. Meanwhile, cost of revenue rose to $22.1 million.
The company’s Bitcoin mining capacity climbed 45.5% YOY to 12.8 EH/s, although self-mined Bitcoin dropped to 485 BTC due to the April 2024 halving and prior divestiture of a facility. On a brighter note, value per Bitcoin soared to $98,219 from $65,984, while power cost per Bitcoin rose to $45,555, reflecting higher difficulty and energy volatility.
The company achieved adjusted EBITDA of $14.5 million, reversing its Q1 loss and highlighting operational improvement. Additionally, TeraWulf closed the quarter with approximately $90 million in cash and Bitcoin holdings.
However, for the quarter, its bottom line remained in the red with a net loss of $18.4 million, or $0.05 per share, compared to the prior-year quarter loss per share of $0.03.
Looking ahead, TeraWulf is on schedule to deliver 72.5 MW of HPC hosting capacity to Core42 in 2025, and targets 200 MW to 250 MW operational capacity by the end of 2026. Revenue from HPC hosting is expected to begin in Q3 2025, a key inflection point in its financial model.
Analysts predict TeraWulf’s loss per share to be around $0.26 for fiscal 2025, a 37% expansion YOY, before improving by 142% annually to EPS of $0.11 in fiscal 2026.
Following the announcement of the landmark 10-year AI hosting deal, multiple analysts raised their outlooks around WULF stock, seeing the agreement as transformative for TeraWulf’s positioning in AI-focused infrastructure.
JMP Securities lifted its price target to $13 from $7 while reiterating a “Market Outperform” rating, citing the company’s transformative new deal with Fluidstack. JMP emphasized the importance of Fluidstack becoming the first major Google-supported platform to secure space at the facility, a move that bolsters confidence in TeraWulf’s growth prospects.
Northland also raised its price target on TeraWulf to $12 from $10, maintaining an “Outperform” rating. The firm called the company’s 200 MW Fluidstack deal and Google partnership a “game-changer.”
Wall Street is majorly bullish on WULF stock. Overall, WULF has a consensus “Strong Buy” rating. Of the 12 analysts covering the stock, nine advise a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining two analysts are on the sidelines with a “Hold” rating.
While the stock has already surpassed the average analyst price target of $7.36, the Street-high target of $13 suggests that shares could rally as much as 45% from here.
www.barchart.com
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
