Google Is Betting Huge on Terawulf Inventory. Ought to You?

TeraWulf (WULF), a Bitcoin (BTCUSD) mining and information middle firm, noticed shares soar final week following a transformative deal backed by Alphabet (GOOGL). The corporate has signed two 10-year high-performance computing (HPC) colocation agreements with Fluidstack, a premier synthetic intelligence (AI) cloud platform. Value roughly $3.7 billion with optionally available extensions lifting the entire to $8.7 billion, the agreements leverage TeraWulf’s Lake Mariner campus’ 200 megawatts (MW) of capability.

Google is underwriting $1.8 billion in Fluidstack’s lease obligations and, in trade, will purchase about 41 million shares of WULF inventory, equating to an roughly 8% fairness stake. Whereas analysts have raised their value targets as excessive as $13, the deal alerts TeraWulf’s pivot into AI infrastructure and provides credibility.

So, does this information make WULF inventory price shopping for now?

Headquartered in Easton, Maryland, TeraWulf is a digital asset know-how firm that develops, owns, and operates environmentally sustainable Bitcoin mining amenities specializing in high-performance computing internet hosting. TeraWulf’s market capitalization stands at roughly $3.5 billion.

WULF inventory has staged a outstanding rally of late, surging 59% in a single day on Aug. 14 following the announcement of the AI internet hosting take care of Fluidstack backed by Google, triggering a dramatic rebound from its April low of $2.06. The momentum prolonged into the subsequent buying and selling day, including additional features and main shares to hit a excessive of $9.23 on Aug. 15.

WULF inventory has delivered a formidable 78% return year-to-date (YTD). Over the previous month alone, the inventory has surged 96% amid its strategic focus towards AI.

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TeraWulf at present trades at a premium in comparison with the sector median at 24.37 instances ahead gross sales.

TeraWulf launched its second-quarter 2025 monetary outcomes on Aug. 8, showcasing a robust rebound with income surging 33.9% year-over-year (YOY) to $47.6 million. In the meantime, price of income rose to $22.1 million.

The corporate’s Bitcoin mining capability climbed 45.5% YOY to 12.8 EH/s, though self-mined Bitcoin dropped to 485 BTC because of the April 2024 halving and prior divestiture of a facility. On a brighter word, worth per Bitcoin soared to $98,219 from $65,984, whereas energy price per Bitcoin rose to $45,555, reflecting increased issue and power volatility.

The corporate achieved adjusted EBITDA of $14.5 million, reversing its Q1 loss and highlighting operational enchancment. Moreover, TeraWulf closed the quarter with roughly $90 million in money and Bitcoin holdings.

Nevertheless, for the quarter, its backside line remained within the purple with a internet lack of $18.4 million, or $0.05 per share, in comparison with the prior-year quarter loss per share of $0.03.

Wanting forward, TeraWulf is on schedule to ship 72.5 MW of HPC internet hosting capability to Core42 in 2025, and targets 200 MW to 250 MW operational capability by the top of 2026. Income from HPC internet hosting is anticipated to start in Q3 2025, a key inflection level in its monetary mannequin.

Analysts predict TeraWulf’s loss per share to be round $0.26 for fiscal 2025, a 37% enlargement YOY, earlier than enhancing by 142% yearly to EPS of $0.11 in fiscal 2026.

Following the announcement of the landmark 10-year AI internet hosting deal, a number of analysts raised their outlooks round WULF inventory, seeing the settlement as transformative for TeraWulf’s positioning in AI-focused infrastructure.

JMP Securities lifted its value goal to $13 from $7 whereas reiterating a “Market Outperform” score, citing the corporate’s transformative new take care of Fluidstack. JMP emphasised the significance of Fluidstack turning into the primary main Google-supported platform to safe house on the facility, a transfer that bolsters confidence in TeraWulf’s development prospects.

Northland additionally raised its value goal on TeraWulf to $12 from $10, sustaining an “Outperform” score. The agency known as the corporate’s 200 MW Fluidstack deal and Google partnership a “game-changer.”

Wall Road is majorly bullish on WULF inventory. General, WULF has a consensus “Sturdy Purchase” score. Of the 12 analysts masking the inventory, 9 advise a “Sturdy Purchase,” one suggests a “Reasonable Purchase,” and the remaining two analysts are on the sidelines with a “Maintain” score.

Whereas the inventory has already surpassed the common analyst value goal of $7.36, the Road-high goal of $13 means that shares may rally as a lot as 45% from right here.

On the date of publication, Subhasree Kar didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially printed on Barchart.com