So, TeraWulf had a rough Friday. The Bitcoin miner's shares kept falling after a disappointing fourth-quarter earnings report that missed Wall Street's targets on both the top and bottom lines. It's the kind of day that reminds you crypto mining is a volatile business, even for the companies with their own power plants.
The numbers tell the story: TeraWulf posted a loss of 29 cents per share. That's more than double the 13-cent loss analysts were expecting. Revenue came in at $35.84 million, which was a hefty 21.73% below the consensus estimate of $45.78 million. The main culprit? Digital asset revenue—which is mostly Bitcoin mining—plummeted to $26.1 million from $43.4 million the prior quarter. Lower Bitcoin production and the price of Bitcoin (BTC) itself did the damage.
But here's where it gets interesting. Not everything was gloomy. TeraWulf has another business line: high-performance computing, or HPC. This is where companies lease space in TeraWulf's data centers for computing power, not for crypto mining. That HPC lease revenue actually grew, climbing to $9.7 million from $7.2 million in the third quarter. The company called fiscal 2025 "a fundamental inflection point," pointing to over 522 megawatts of IT capacity locked into long-term lease agreements. So, while the Bitcoin engine sputtered, the data center business provided some thrust.
Meanwhile, the short sellers are circling. Short interest increased to 95.57 million shares, representing nearly 28% of the available float. With the stock's average daily volume, it would take short sellers roughly two days to buy back all their borrowed shares if they needed to cover their bets quickly.
Looking at the chart, the stock's recent drop has brought it down to around $16.82, but it's still trading above its key short-term and medium-term moving averages. Over the past 12 months, let's not forget, the stock is still up a staggering 367.31%. It's hovering not too far from its 52-week high of $18.51. Technically, traders are watching $17.50 as a key resistance level and $15.44 (its 20-day simple moving average) as major support.
What's next? The company is scheduled to report again on May 8. Analysts are currently forecasting a loss of 17 cents per share on revenue of $43.88 million for that quarter. The overall analyst rating sits at a Buy, with an average price target of $14.37. Recent moves show some optimism: Cantor Fitzgerald raised its target to $24 in late February, Needham maintained a Buy rating with a $21 target in early February, and Keefe, Bruyette & Woods upgraded the stock to Outperform with a $24 target back in December.
By the end of trading Friday, TeraWulf shares were down 8.78% at $16.31.
