Shares of TeraWulf Inc (TeraWulf (WULF)) were up more than 3% Monday morning after the Bitcoin miner turned high-performance computing (HPC) landlord reported first-quarter results that had analysts nodding approvingly.
Here's what the Street is saying.
Needham: Raising the Target
Analyst John Todaro kept his Buy rating and lifted his price target from $22 to $28. TeraWulf's Q1 revenue came in at $34 million, with HPC lease revenue jumping 117% from the prior quarter to $21 million. That more than made up for a 50% drop in mining revenue, which is exactly the kind of pivot investors want to see.
Cost of goods sold was just $2.4 million, well below Needham's $16 million estimate. But adjusted EBITDA was a loss of $4.1 million, missing Needham's forecast of a $2.5 million loss and management's own guidance of breakeven to a $3 million loss. Management blamed a "reclassification of certain costs."
On the positive side, Todaro noted that TeraWulf's Kentucky site is "among the next in the sector to be signed" and that management expects a lease by the end of the second quarter.
Rosenblatt: HPC Is the Star
Analyst Chris Brendler also reiterated a Buy and $27 target. He called the results "encouraging," especially since HPC revenues surpassed Bitcoin mining revenues by a wider margin than expected.
TeraWulf also cashed in on harsh winter weather, which spiked power prices and pushed demand response revenue to a record $14.1 million — up 404% year over year. Brendler highlighted two key HPC catalysts:
- Lake Mariner development is on schedule, with interconnection approval for the next 250 megawatts expected by mid-2026 and availability shortly after.
- The Hawesville, Kentucky, site is in late-stage development and likely to host the next HPC contract.
Brendler also flagged TeraWulf's new $250 million corporate revolving credit facility, backed by eight global banks, as "another important validation of both the underlying HPC model and WULF's execution."
Price Action
As of Monday's trading, TeraWulf shares were up 3.01% at $24.10.
