Since our final yr’s roundup of Bitcoin mining shares, TeraWulf (NASDAQ: WULF) inventory value has doubled, having gone from $4.39 to the present $8.98 per share. Throughout this rise, the Maryland-based firm diversified into two core subsidiaries: WULF Compute and WULF Mining.
Whereas WULF Mining continues Bitcoin mining operations, benefiting from BTC value rise, WULF Compute is providing knowledge facilities for high-performance computing (HPC) and AI workloads. This twin focus makes TeraWulf a horny candidate for buyers in search of publicity not solely to Bitcoin’s function as a hedge towards central banking, but additionally to the secular progress of the AI/HPC megatrend.
Latest Massive Tech funding in WULF inventory makes it even clearer. The corporate’s dual-track mannequin of Bitcoin mining and AI/HPC internet hosting has gained validation past the crypto area of interest. In fact, the most effective time for WULF publicity was final yr after we lined it, however what can buyers count on subsequent?
TeraWulf as Beneficiary of Alphabet’s Information Middle Diversification
For 2025 alone, Alphabet (NASDAQ: GOOGL) dedicated round $75 billion to spice up its knowledge middle capability. Throughout April’s Google Cloud Subsequent convention, Alphabet CEO Sundar Pichai famous that “the chance with AI is as large because it will get.”
Nonetheless, the Massive Tech big just isn’t solely investing in its personal cloud computing division to satisfy AI demand. In mid-August, for its Q2 2025 earnings, TeraWulf revealed a $1.8 billion backstop of Fluidstack’s lease obligations supplied by Google.
TeraWulf’s cope with Fluidstack for HPC/AI workloads is value $3.7 billion in income over two contracts’ 10-year phrases, with an choice for 2 five-year extensions, doubtlessly upping the worth to $8.7 billion. That is the place Google stepped in to finance debt by buying ~41 million WULF shares, or round 8% of TeraWulf’s fairness stake.
On the bottom, Fluidstack will make the most of TeraWulf’s Lake Mariner knowledge middle campus in Western New York, delivering over 200 MW of pc energy.
Provided that Fluidstack is Nvidia’s companion, alongside Dell and Borealis Information Middle for exascale GPU clusters, this makes TeraWulf a vital second-order beneficiary of the AI growth. With Google successfully underwriting the enterprise, the corporate is tapping into one of many fastest-growing demand curves in tech by positioning itself as hyperscaler-adjacent.
TeraWulf’s Complete Addressable Market
In its Power and AI report, the Worldwide Power Company (IEA) projected a 70% knowledge middle electrical energy consumption rise between 2024 and 2030, as the bottom case. The US would lead this effort, forsaking Europe and China, which is why President Trump issued a number of govt orders to tear down bureaucratic hurdles, particularly because it pertains to nuclear vitality.
In response to McKinsey & Firm, this demand would account for $6.7 trillion value of compute energy by 2030. For AI workloads particularly, the market worth is forecasted to vary between $3 trillion to $8 trillion in capital expenditures (capex). This largely will depend on AI optimization and important discount of AI confabulation in order that AI fashions are correct and reliable.
If the latter situation is profitable, mass adoption of AI is anticipated in enterprise integration. Nonetheless, even when there’s stalling on this accuracy space, it bears remembering that compute demand varies tremendously between textual content, picture and video era.
In response to IEA, textual content era requires round 0.3 Wh of vitality per activity by a small language mannequin (SLM), whereas picture era calls for 1.7 Wh. Video era is 2 orders of magnitudes better, exerting round 115 Wh for a 6-second low high quality video. For comparability, charging a smartphone requires 15 Wh.
Provided that there isn’t a space of human exercise through which AI couldn’t be included, it’s secure to say that TeraWulf sits on the nexus of two secular progress curves – AI adoption and clear vitality infrastructure for Bitcoin mining.
TeraWulf’s Prospects and Value Goal
In Q2 2025, TeraWulf mined 485 BTC, on the aforementioned Lake Mariner facility. Though this was decrease than 699 BTC within the year-ago quarter, it was anticipated after divesting from Nautilus Cryptomine final October.
But, given Bitcoin’s shortage and rising institutionalization, which drives its value, TeraWulf’s self-mined BTC worth grew from $46.1 million to $47.6 million in that interval. General, the corporate elevated its clear BTC mining capability 45.5% year-over-year to 12.8 EH/s.
After securing Cayuga web site with an 80-year lease in Lansing, the corporate added 400 MW of HPC/AI capability. By 2030, TeraWulf’s whole gross capability must be 1,150 MW, divided between Lake Mariner’s 750 MW and Cayuga’s 400 MW.
As of Q2, TeraWulf holds $90 million in money and BTC, whereas having a $500 million whole excellent debt. VanEck maintains its BTC value prediction from late 2024, forecasting $180,000 per BTC by the yr’s finish. This value goal is now likelier, contemplating that the Fed is signaling charge cuts regardless of rising inflation issues.
In flip, TeraWulf’s debt load to scale up AI demand must be manageable. In response to WSJ’s forecasting knowledge, all analysts are within the “purchase” camp, placing the typical WULF value goal at $11.92. The underside outlook is $6.5, whereas the ceiling value goal for WULF inventory is $14 per share.
Disclaimer: The creator doesn’t maintain or have a place in any securities mentioned within the article. All inventory costs have been quoted on the time of writing.
