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Shares of AI infrastructure names are bouncing hard in early Monday trading, led by IREN (NASDAQ:IREN), up 17% to $39.28. Applied Digital (NASDAQ:APLD) is up 9% to $28.06, TeraWulf (NASDAQ:WULF) is up 7% to $19.44, and Core Scientific (NASDAQ:CORZ) is up 7% to $22.31.

The moves come after a punishing stretch. IREN shares fell 42% over the past month into Friday’s close, while APLD stock slid 43%, WULF shares dropped 35%, and CORZ stock lost 26%. Today’s bounce reads as a technical recovery rather than a fresh catalyst.

A Bounce Off of Deeply Depressed Levels There is no confirmed news catalyst behind Monday’s rebound in the four former Bitcoin (CRYPTO:BTC) miners turned AI infrastructure operators. The group has been at the center of a sector-wide AI infrastructure de-rating, and each name entered the day trading well below its 50-day moving average. IREN stock, for instance, closed Friday at $33.62 versus a 50-day moving average of $52.71.

The fundamentals underneath the moves remain mixed. IREN’s Q3 FY2026 revenue came in at $144.8 million, well short of the roughly $219.3 million analyst estimate, with a net loss of $247.8 million. The bull case rests on a 5-year, $3.4 billion AI Cloud contract with NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and a target of 150,000 deployed GPUs by end of CY2026.

Applied Digital told a different story. Its Q3 FY2026 revenue rose 139% year over year to $126.6 million, with adjusted EBITDA of $44.1 million. Applied Digital CEO Wes Cummins noted that hyperscaler annual capex reportedly grew from roughly $400 billion to nearly $700 billion, with anchor customer CoreWeave (NASDAQ:CRWV) driving Polaris Forge demand.

Sector Context and Peer Reaction TeraWulf and Core Scientific are riding similar structural tailwinds. TeraWulf’s HPC lease revenue reached $21 million in Q1 FY2026, over 60% of total revenue, backed by anchor tenants including an Alphabet‘s (NASDAQ:GOOGL) Google credit-supported financing package. Core Scientific posted 45% year-over-year revenue growth to $115.2 million, with high-density colocation surging 9x YoY.

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The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) offers a lower-volatility angle on the same theme, and it’s up 2% to $27.91 in early Monday trading. The ETF holds Applied Digital at only 3.2% and doesn’t hold IREN, CORZ, or WULF. Instead, its top positions are data center REITs like Equinix (NASDAQ:EQIX), Digital Realty Trust (NYSE:DLR), and American Tower (NYSE:AMT), plus chip names including Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL).

Retail sentiment tells a more cautious story. StockTwits’s AI sentiment summary suggests the community is divided, with bulls citing AI cloud demand and a raised ARR target and bears pointing to share dilution and management compensation concerns. Separately, Reddit chatter on IREN skewed bearish to very bearish across the past week.

What to Watch Now All four names remain unprofitable on a trailing basis, and each carries a high beta (IREN’s beta sits at 4.279, CORZ at 5.5). Investors can watch for whether today’s bounce holds through the close and whether volume confirms the reversal.

The next fundamental catalyst is earnings season, when hyperscaler capex commentary from Microsoft (NASDAQ:MSFT) and its peers can reset the trajectory for this cohort. Until then, price action in this sector will likely be dictated by positioning and sentiment rather than fresh operating data.

The takeaway: Monday’s rebound appears to be a technical relief rally off deeply oversold levels, not a confirmed change in trend. The fundamentals remain bifurcated (Applied Digital and Core Scientific are showing operating leverage, while IREN and TeraWulf still carry heavier losses), and investors should treat the bounce accordingly.

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TeraWulf stock is set to close lower for a fourth-consecutive trading session on Wednesday. (TeraWulf / YouTube)

Shares of TeraWulf, the Bitcoin miner turned data-center operator, sold off on Tuesday following New York Gov. Kathy Hochul’s decision to prohibit large data-center construction for up to a year. However, Wall Street isn’t concerned—and believes there’s a TeraWulf buying opportunity.

TeraWulf CEO Paul Prager discusses the company's deal with Anthropic, projected to generate $19 billion, on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #terawulf #anthropic #artificialintelligence #ai #datacenter #cloudcomputing #technology #business #investment #stocks #economy #ceo #paulprager #energy #digitalinfrastructure #growth Don't just watch Fox News—be part of it.

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Shares of TeraWulf (NASDAQ:WULF) are up 12% to $22.67 in mid-morning trading, leading a broad rebound across AI-infrastructure names that were hammered on Tuesday. IREN (NASDAQ:IREN) stock is up 7% to $42.55, while peers Applied Digital (NASDAQ:APLD) and Cipher Mining (NASDAQ:CIFR) are up 3% to $31.53 and up 5% to $21.45, respectively.

Today’s move mirrors yesterday’s decline, when TeraWulf shares dropped 8%, IREN slid 7%, and Applied Digital fell 6%. There’s no fresh company-specific catalyst driving the bounce. Instead, the group is riding a broader risk-on tape, with beaten-down Chinese tech and other high-beta names also rebounding.

All four are former Bitcoin (CRYPTO:BTC) miners repurposing power and data-center capacity for AI compute leasing. That pivot has made them among the most volatile names in the market, and today’s snap-back is a reminder of how quickly sentiment can flip in the neocloud cohort.

TeraWulf Leads the Rebound TeraWulf stock is the standout mover today. The underlying bull story remains its previously announced 20-year, roughly $19 billion Anthropic AI data-center lease, disclosed earlier this week. That contract anchors a long-tail revenue stream tied directly to AI compute demand.

Beyond Anthropic, TeraWulf continues to scale its high-performance computing (HPC) platform. TeraWulf’s HPC lease revenue hit $21.02 million in Q1 FY2026, more than 60% of total revenue, and the company recently closed a $1 billion equity raise to fund its Hawesville, Kentucky campus. Moreover, the company’s total contracted revenue exceeds $13 billion across anchor tenants including Core42, Fluidstack, and Alphabet‘s (NASDAQ:GOOGL | GOOGL Price Prediction) Google.

Despite this week’s whipsaw, TeraWulf shares are up 99% year to date (YTD), making WULF one of the strongest performers in the group. The consensus analyst target price of $36.32 sits well above current levels, and Wall Street ratings skew heavily positive with five strong buys and 12 buys.

IREN, Applied Digital and Cipher Mining Ride Along IREN stock is bouncing without any discrete headline. The company’s landmark five-year, $3.4 billion AI Cloud contract with NVIDIA (NASDAQ:NVDA), paired with up to $2.1 billion in NVIDIA investment vesting as GPU infrastructure scales, remains the centerpiece of its AI Cloud pivot. IREN shares are up 12% YTD despite a rough June.

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Applied Digital shares are grinding higher after a bruising week. The company recently reported Q3 FY2026 revenue of $126.64 million, up 139% year over year (YoY), and signed a 15-year lease with an investment-grade hyperscaler for 200 MW at Polaris Forge 2. Applied Digital stock is up 25% YTD.

Cipher Mining stock is extending a strong 2026, with the rebranded Cipher Digital holding 700 MW of contracted HPC capacity plus anchor leases with Fluidstack/Google and Amazon‘s (NASDAQ:AMZN) AWS targeting October 2026 energization. Cipher Mining shares are up 39% YTD, and Needham recently raised its price target to $25.

Bull Case vs. Bear Case The bull case for the AI-infrastructure cohort is straightforward. Hyperscaler capex is running at eye-watering rates, power is the binding constraint, and these companies control gigawatts of contracted capacity. Multi-year leases with credit-enhanced anchor tenants transform historically cyclical Bitcoin miners into utility-like AI landlords.

The bear case is equally important, however. These are pre-profit, highly volatile names that can swing sharply in both directions. TeraWulf reported an EPS loss of -$1.01 in Q1 FY2026, weighed by a $216.32 million non-cash warrant revaluation charge, and IREN posted a Q3 FY2026 net loss of $247.8 million. This week’s action, an 8% drop followed by an 11% bounce, tells the story on volatility.

What to Watch Today’s rebound needs to hold into the close to confirm the reversal thesis. Investors can watch how AI-adjacent names trade alongside the broader risk-on tape, and whether analyst follow-through emerges on TeraWulf’s Anthropic lease. For those building exposure to the neocloud theme, position sizing should stay modest given the volatility profile these stocks have shown all year.

Traders may keep TeraWulf, IREN, Applied Digital, and Cipher Mining shares active through the afternoon. A close near session highs would set up a constructive tone heading into the next batch of hyperscaler capex updates.

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TeraWulf CEO Paul Prager says a new 20-year lease agreement with Anthropic is a major vote of confidence in the company's AI infrastructure strategy. Speaking on "Bloomberg The Close," Prager also discusses plans for a purpose-built AI campus at TeraWulf's Kentucky site and what the long-term partnership means for future growth.

Artificial intelligence is hitting a severe physical barrier. The language models are getting exponentially smarter, and the silicon is processing data faster than ever before, but the physical electrical grid cannot deliver power fast enough to keep up with demand. Hyperscalers require multi-gigawatt power drops and large liquid-cooling systems to train their next-generation models, and they need these facilities to be fully operational immediately.

Enter the Bitcoin mining sector. For years, cryptocurrency miners have spent billions building high-density energy fortresses in remote locations. Now, operators with the right infrastructure are realizing they hold the exact real estate that artificial intelligence (AI) developers are desperate to acquire.

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The $19 Billion Jolt: Rewiring the AI Infrastructure TradeTeraWulf Today

$19.68 -2.53 (-11.37%)

As of 10:16 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$4.64▼

$29.84Price Target$33.93

TeraWulf Inc. NASDAQ: WULF just provided the definitive proof of concept for this entire infrastructure crossover thesis. TeraWulf recently executed a landmark 20-year lease agreement with artificial intelligence powerhouse Anthropic, securing an estimated $19 billion in contracted revenue over the initial term.

Investors should see this as more than a standard commercial real estate transaction. It represents a fundamental structural shift in how digital infrastructure operators can monetize stranded power assets. By transitioning from the highly cyclical nature of cryptocurrency mining to utility-grade data center yield, TeraWulf is setting an entirely new operational precedent for the high-performance computing (HPC) sector.

Flipping the Switch: Funding a $19B Hyperscaler EmpireTo understand the magnitude of this transition, investors must look at the specific mechanics of the Anthropic agreement and how TeraWulf is actively funding the buildout. The 20-year lease centers on the Justified Data campus in Hawesville, Kentucky, which is a purpose-built facility designed to handle 401 megawatts of critical IT load.

Management expects to place the initial capacity into service in the second half of 2027, ramping up to the full 401 megawatts by early 2028. To put that scale into perspective, traditional enterprise data centers often operate between 10 and 50 megawatts. A 401-megawatt site is a true digital fortress.

Building a facility of this magnitude requires immense capital expenditure. A glance at the balance sheet reveals an elevated debt-to-equity ratio of 33.00, a lingering byproduct of rapid infrastructure expansion during previous crypto bull markets. Funding this new Anthropic campus entirely through high-interest debt or heavy equity dilution would have severely penalized current shareholders. Instead, TeraWulf executed a strategic masterclass in capital recycling.

Simultaneous to the Anthropic announcement, TeraWulf sold its 50.1% interest in the Abernathy Joint Venture to a Fluidstack-led investor group. This specific divestiture monetizes a 168-megawatt Texas facility for $450 million at a premium to the initial invested capital.

By liquidating a legacy joint venture stake, TeraWulf captures immediate non-dilutive capital to redeploy directly into the wholly owned Justified Data project. This maneuver eliminates joint-venture accounting constraints and ensures TeraWulf maintains direct operational control over its most lucrative hyperscaler infrastructure.

Upgrading the Circuit: From Block Rewards to AI YieldThis strategic pivot completely rewrites TeraWulf's forward-looking margin profile. Historically, cryptocurrency miners suffer from brutal margin compression. They are tethered to volatile block rewards, unpredictable spot pricing, and mandatory hardware refresh cycles following every network halving event. Recent historical earnings reflect these exact operational challenges, highlighted by a sharp first-quarter 2026 earnings miss and heavily negative trailing net margins.

Hosting enterprise-grade artificial intelligence workloads changes the financial math entirely. Hyperscalers require the same multi-megawatt grid interconnects and liquid-cooling infrastructure as modern miners, but they pay significantly higher premiums for network stability and guaranteed uptime.

Industry data suggests that high-performance computing workloads yield approximately $149,000 per megawatt month. By comparison, conventional mining operations generate roughly $87,000 per megawatt month.

By locking in a two-decade agreement backed by an investment-grade credit rating, TeraWulf replaces the unpredictable lottery of mining rewards with predictable cash flows. Investors are seeing similar transition attempts across the sector from peers like Core Scientific Inc. NASDAQ: CORZ and Iris Energy Ltd. NASDAQ: IREN, but securing a binding $19 billion commitment from a tier-one developer firmly separates the actual operators from the aspirational ones.

Shock to the System: A High-Voltage SqueezeThe underlying business fundamentals are shifting rapidly, and technical market mechanics are heavily amplifying the upside narrative. A severe disconnect currently exists between institutional positioning and retail short sellers, creating a highly volatile setup that heavily favors acute upward price action.

Over the trailing 12 months, smart money has been aggressively accumulating shares.

TeraWulf Stock Forecast Today12-Month Stock Price Forecast:
$33.46
50.63% Upside

Moderate Buy
Based on 18 Analyst Ratings

Current Price$22.21High Forecast$66.50Average Forecast$33.46Low Forecast$18.25TeraWulf Stock Forecast Details

Recent 13F filings indicate $991.36 million in institutional inflows compared to just $305.12 million in outflows, bringing total institutional ownership to a majority 62.49% of the outstanding shares. Investors will also see transparent internal positioning ahead of this catalyst, highlighted by a recent stock retainer grant to Director Walter E. Carter and a structured trading plan established by CEO Paul Prager to navigate the anticipated capacity scaling.

Despite this clear institutional conviction, short interest remains acutely elevated. Currently, 108.7 million shares are sold short, accounting for almost 28% of the publicly available float. With a days-to-cover ratio sitting at 4.1, bearish traders find themselves incredibly vulnerable to sudden price spikes.

Short sellers built their thesis on the assumption of continued margin compression and debt distress from legacy mining operations. The sudden realization of $19 billion in contracted high-margin revenue actively forces a complete reassessment of that bear thesis.

As TeraWulf begins to book this utility-grade yield, the fundamental repricing of the stock introduces extreme near-term margin pressure on those short positions. This acts as a forced-covering mechanism, adding intense buying volume to an equity already experiencing heavy institutional accumulation.

Plugging Into the Next Generation of ComputeTeraWulf has provided the definitive blueprint for monetizing high-density power assets in the modern digital economy. The transition from cryptocurrency hardware to utility-grade computational real estate structurally derisks the business model while drastically expanding long-term revenue visibility.

Investors seeking exposure to the physical infrastructure required to power the next generation of computing may want to add TeraWulf to their watchlist as the initial phases of the Anthropic buildout take shape. As always, execution risk remains a factor in any large-scale development project, particularly regarding the timely deployment of the 401-megawatt infrastructure by 2027. Cautious market participants might prefer to monitor upcoming earnings reports to verify that capital from the Abernathy sale is efficiently flowing into the Kentucky campus before taking a definitive position.

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Shares of TeraWulf (NASDAQ:WULF) extended a powerful rally on Monday afternoon, separating the stock from its bitcoin-mining peers by a wide margin. WULF stock is up 4% today and up 95% year to date to $22.10, marking its most sustained rerating since going public.

The catalyst is a landmark 20-year lease with Anthropic, the private AI lab behind the Claude chatbot. Under the agreement, TeraWulf expects to generate about $19 billion in contracted revenue by building a purpose-built AI campus at its Justified Data site in Hawesville, Kentucky.

TeraWulf also agreed to sell its 50.1% stake in the Abernathy Texas joint venture with partner Fluidstack to a Fluidstack-led investor group, monetizing a roughly $450 million investment at a premium. Together, the two moves reframe TeraWulf from a Bitcoin (CRYPTO:BTC) proxy into a long-duration compute-infrastructure landlord.

Anthropic Anchors a New Revenue Base The Kentucky campus is engineered to support about 401 megawatts of critical IT load, with initial capacity expected online in the second half of 2027 and full capacity by early 2028. TeraWulf expects the lease to be supported by an investment-grade credit rating, a rare bar in the mining-turned-AI cohort.

TeraWulf CEO Paul Prager has been building toward this narrative for quarters. On the most recent earnings call, he stated, “We are building a power-advantaged platform that we believe is increasingly differentiated in a market constrained by access to power.” The Anthropic deal converts that pitch into a decades-long contracted cash-flow stream.

TeraWulf’s Q1 2026 results already showed the shift in real time. HPC lease revenue reached $21.02 million, over 60% of total revenue, while digital-asset mining slid to $12.99 million. Total platform contracted revenue already exceeds $13 billion before the new Anthropic agreement is layered in.

The company’s platform is targeting 250 to 500 megawatts of new critical IT capacity annually across sites in New York, Texas, Kentucky, and Maryland. That pipeline gives TeraWulf a runway to keep signing anchor tenants without leaning on bitcoin economics.

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AI-Pivot Miners Compared TeraWulf’s outperformance stands out sharply against peers pursuing the same transition. Cipher Mining (NASDAQ:CIFR) shares are up 44% year to date to $21.37, aided by 700 MW of contracted HPC capacity and leases tied to Fluidstack, Alphabet‘s (NASDAQ:GOOGL | GOOGL Price Prediction) Google, and Amazon (NASDAQ:AMZN) Web Services.

Applied Digital (NASDAQ:APLD) shares are up 37% year to date to $33.51, with a 200 MW hyperscaler lease anchoring its Polaris Forge 2 campus. Quarterly revenue rose 139% year over year (YoY) as the CoreWeave (NASDAQ:CRWV) build-out continues to ramp.

IREN (NASDAQ:IREN) shares are up 15% year to date to $43.59, the group laggard despite a $3.4 billion, five-year AI cloud contract with NVIDIA (NASDAQ:NVDA) and a reported $9.7 billion Microsoft (NASDAQ:MSFT) agreement. Access to grid-connected power remains the binding sector constraint, and each of these names is being re-rated as an AI landlord rather than a hash-rate story.

What to Watch Next The bull case for TeraWulf stock is now concrete: a $19 billion contracted revenue stream, investment-grade credit backing, and visible operating momentum at Lake Mariner and Kentucky. The bear case is timing and volatility. Full Anthropic capacity isn’t expected until early 2028, and WULF stock carries a beta of 4, meaning sentiment swings can dominate short-term price action.

Analysts currently carry a consensus price target of $36 on WULF shares, well above current levels, with five strong-buy and eight buy ratings and no sells or holds recorded. A single mega-deal doesn’t remove construction, permitting, or financing risk, so investors leaning into the story should size their positions modestly and expect sharp drawdowns along the way.

Watch for whether TeraWulf converts the Anthropic announcement into visible construction milestones at Hawesville through the second half of 2026, and whether the Abernathy monetization closes on the terms described. The next quarterly earnings print, together with any formal credit-rating action tied to the Anthropic lease, may set the tone for TeraWulf shares into year-end.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

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Terawulf Inc (NASDAQ:WULF) is up 7.5% to trade at $22.74 this afternoon, set to snap a seven-day losing streak, thanks to its newly penned deal with Anthropic. The AI infrastructure concern has agreed to build a $19 billion dollar data center just outside Louisville, KY. The lease will span 20 years.

Despite last week's drawdown, WULF has outperformed over the past 12 months, up 330%. The ascending 80-day moving average captured Thursday's selloff, marking the last session of what became Terawulf stock's longest losing streak since April 2024.

This bounce may have been on the way already, considering the stock's 14-day Relative Strength Index (RSI) of 28, well into "oversold" territory.

Put traders have been circling, too, leaving ample room for bulls to move in, should this bearish attention begin to unwind. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Terawulf's 10-day put/call volume ratio of 1.02 ranks in the highest annual percentile. 

Today the skew tilts toward call traders. At last look, over 170,000 calls have changed hands today, volume that's 1.9 times the average intraday amount and nearly triple the number of puts exchanged. The weekly 7/10 10-strike call is the most popular, while July 25 call is seeing notable attention as well.

The deal “validates” the crypto-mining company's pivot to supporting the AI buildout, its CEO said.

TeraWulf (NASDAQ:WULF) shares rose 13% on Monday after the company announced a long-term artificial intelligence infrastructure lease with Anthropic alongside the sale of a majority stake in a joint venture, moves that significantly expand contracted revenue while recycling capital into new development projects.

The digital infrastructure company said it has signed a 20-year lease agreement with Anthropic for capacity at its Justified Data Campus in Hawesville, Kentucky.

The agreement is expected to generate approximately $19 billion in contracted revenue over the initial term, according to TeraWulf.

The campus is designed to support around 401 megawatts of critical IT load and will be developed in phases, with initial capacity expected to come online in the second half of 2027 and full buildout targeted for early 2028. TeraWulf said the lease is expected to be backed by investment-grade credit.

TeraWulf CEO Paul Prager said the Anthropic lease marks a “landmark partnership” that validates the company’s strategy of securing long-duration customer commitments for large-scale AI infrastructure campuses.

He said the agreement “establishes a long-duration revenue stream” and demonstrates the company’s ability to secure major AI customers while developing power-secured infrastructure at scale.

TeraWulf also announced it will sell its 50.1% ownership interest in the Abernathy Joint Venture to an investor group led by Fluidstack, its existing partner.

The transaction values TeraWulf’s investment at approximately $450 million, representing a premium to invested capital, and will allow the company to redeploy proceeds into wholly owned AI infrastructure projects.

The Abernathy joint venture, established in 2025, was developing a 168 MW AI data center campus in Texas. Following completion of the sale, Fluidstack will continue to lead development of the project.

Prager added that the Abernathy divestment allows TeraWulf to “crystallize value” from its investment while reallocating capital into projects where it retains full ownership and operational control.

Anthropic on Monday signed a 20-year lease to use a TeraWulf data center in Kentucky.

The data center, located about an hour southwest of Louisville in Hawesville, will have capacity of around 400 megawatts with first power delivery expected in the second half of 2027.

TeraWulf shares soared more than 16% in premarket trading. The lease is expected to generate around $19 billion in revenue over the initial term.

"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," CEO Paul Prager said.

TeraWulf also sold its 50% interest in a 168-megawatt data center in Abernathy, Texas to an investor group led by Fluidstack.

TeraWulf is a crypto mining company that has pivoted to AI data center infrastructure. Its stock is up more than 80% this year.

WULF year to date

TeraWulf will partner with Anthropic to build an artificial-intelligence infrastructure campus in Kentucky that could generate $19 billion in revenue.

Anthropic logo, a keyboard, and a robotic hand in this illustration taken June 5, 2026. REUTERS/Dado Ruvic/Illustration//File Photo Purchase Licensing Rights, opens new tab

July 6 (Reuters) - TeraWulf (WULF.O), opens new tab said on Monday it signed a 20-year lease with ​Anthropic for data center infrastructure, a ‌deal expected to generate about $19 billion in contracted revenue, sending the bitcoin miner's shares up more than 10% in ​early trading.

The deal secures long-term, recurring ​revenue for TeraWulf from an AI customer ⁠as it shifts away from relying on ​bitcoin mining, a transition the company said in ​May would increasingly drive its business.

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Here are some details:

The Anthropic lease covers a purpose-built AI infrastructure campus at ​TeraWulf's Justified Data site in Hawesville, Kentucky.

The ​campus will support about 401 megawatts of critical IT load, ‌with ⁠initial capacity expected online in the second half of 2027 and full capacity by early 2028.

Separately, TeraWulf agreed to sell its 50.1% stake ​in the ​Abernathy joint ⁠venture to an investor group led by partner Fluidstack.

The sale monetizes ​TeraWulf's roughly $450 million investment at a ​premium ⁠to invested capital and frees up capital for wholly owned AI infrastructure projects.

As of previous close, ⁠TeraWulf ​shares had gained about 85% ​year to date.

Reporting by Anhata Rooprai and Anzar Mehraj in ​Bengaluru; Editing by Vijay Kishore and Joyjeet Das

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways WULF's HPC leasing revenues surged 117% sequentially in Q1 2026 and accounted for 62% of total revenues.IREN is growing AI cloud revenues, but lower bitcoin mining revenues are pressuring near-term results.WULF benefits from long-term HPC contracts, while IREN faces transition-related impairment charges. IREN Limited (IREN - Free Report) and TeraWulf (WULF - Free Report) are key players in the artificial intelligence (AI) infrastructure market that offer next-generation data center infrastructure targeting high-performance computing (HPC), AI workloads and scalable computing. IREN Limited is one of the world’s largest and lowest-cost bitcoin miners that operate next-generation data centers using renewable energy, while TeraWulf focuses on HPC data centers designed for AI workloads.

Currently, IREN and WULF have an opportunity to capitalize on the emerging AI space as the need for AI compute infrastructure is witnessing a CAGR of 23.8%, per a report by MarketsAndMarkets. With this strong industry growth forecast, the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.

The Case for IREN StockIREN’s recent financial results reflect its ongoing shift toward AI cloud services. In the third quarter of fiscal 2026, AI Cloud Services revenues were $33.6 million compared with $17.3 million in the previous quarter, reflecting sequential growth of 94.2%. Here, strong AI infrastructure demand and rising contracted capacity are expected to continue supporting growth in IREN's AI cloud business.

IREN’s recent partnership with NVIDIA to strengthen its AI cloud business is a key positive. The company signed a $3.4 billion, five-year AI cloud contract with NVIDIA to deploy Blackwell GPUs across 60 megawatts of air-cooled capacity at its Childress campus in Texas. The above-mentioned contract should contribute around $700 million in annual recurring revenues (ARR) and support future growth in AI cloud revenues.

However, IREN is seeing near-term pressure on revenues as it moves away from Bitcoin mining and focuses more on AI cloud services. In the third quarter of fiscal 2026, total revenues fell 21.6% from the previous quarter. Management said that this drop was mainly due to lower Bitcoin mining revenues, which declined 33.6% on a sequential basis in the third quarter of fiscal 2026.

IREN is shifting power and infrastructure away from mining and toward AI workloads. AI cloud revenues are increasing, but they are not yet large enough to fully make up for the drop in mining revenues. Management said this pressure should be temporary. As more GPUs are installed and AI cloud contracts ramp up, AI revenues are expected to become the main source of revenue. Until then, quarter-over-quarter results may remain uneven.

Further, higher costs relating to the recognition of impairment charges on IREN’s Bitcoin mining hardware, as it shifts toward AI cloud infrastructure, continue to weigh on IREN’s prospects. In the fiscal third quarter, impairment charges amounted to $140.4 million, representing a whopping increase from $31.8 million incurred in the prior quarter. These impairment charges reflect the declining importance and value of IREN’s legacy mining business. IREN’s transition to AI cloud means that these charges are expected to continue in the near term, which may put reported profitability under pressure in the upcoming quarters.

The Case for WULF StockTeraWulf is rapidly transforming from a Bitcoin miner into an AI infrastructure company, where the company's HPC leasing business is becoming the main driver of growth. In the first quarter of 2026, HPC leasing revenues were $21 million, which increased 117% sequentially and contributed to nearly 62% of total revenues.

The growth was driven by the completion of the Core42 deployment at the Lake Mariner facility. During the first quarter, TeraWulf delivered all 60 megawatts of contracted capacity to Core42 and began generating revenues from the lease. This was the first quarter in which HPC leasing made a meaningful contribution to the company's financial results.

The contribution from HPC leasing is expected to increase further in the coming quarters. TeraWulf is developing additional capacity for Fluidstack and Google at Lake Mariner. The company expects CB-3 to begin operations shortly, while CB-4 and CB-5 are scheduled to come online in the third and fourth quarters of 2026. As these facilities come online, HPC leasing revenues should continue to grow.

The segment also carries higher profitability. Management stated that the reported HPC segment's profit margin was approximately 50% in the first quarter. Excluding tenant fit-out work, pre-revenue operating expenses and development costs for future sites, the profit margin would have been approximately 85%.

The business mix is also becoming more predictable. Bitcoin mining revenues depend on Bitcoin prices, mining difficulty and network conditions. In contrast, HPC leasing revenues come from long-term contracts with customers. Management stated that future revenue growth will increasingly come from contracted, credit-backed HPC customers rather than mining operations.

With additional capacity scheduled to enter service during 2026 and strong demand from AI and hyperscale customers, HPC leasing appears set to become TeraWulf's primary revenue and profit driver.

How Do Estimates Compare for IREN & WULF?The Zacks Consensus Estimate for IREN’s fiscal 2026 loss is pegged at 40 cents per share, revised downward over the past 30 days. The company reported earnings of 4 cents per share in fiscal 2025.

The consensus mark for WULF’s 2026 loss is pegged at $1.53 per share, narrower than the loss of $1.66 per share reported in 2025.

IREN vs. WULF: Price Performance and ValuationYear to date, shares of IREN and WULF have returned 55.3% and 143.8%, respectively.

IREN Vs. WULF: YTD Price Return Performance
Image Source: Zacks Investment Research

In terms of the forward 12-month price/sales ratio, WULF is trading at 23.09X, higher than IREN’s 7.82X. Despite trading at a higher P/S multiple, WULF’s valuation premium is supported by the increasing contribution of its high-margin HPC leasing business and stronger revenue visibility from long-term customer contracts.

IREN vs. WULF: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

Conclusion: WULF Has an Edge Over IRENBoth IREN and WULF are key players in the AI infrastructure space, but their near-term outlooks are quite different. Currently, IREN faces near-term risks from lower bitcoin mining revenues and rising impairment charges as the company moves away from Bitcoin mining to focus more on AI cloud services.

In contrast, TeraWulf’s HPC leasing contributed nearly 62% of first-quarter 2026 revenues and is becoming the company's primary growth driver. The business is supported by long-term contracts with customers such as Core42, Fluidstack and Google, providing greater revenue visibility than Bitcoin mining operations.

Currently, WULF carries a Zacks Rank #3 (Hold), giving the stock a clear edge compared to IREN, which has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

"A rising tide lifts all boats" is a popular piece of market jargon, but you can see why it sticks during rallies like the AI gold rush. Anyone and everyone is trying to get into the data center game today, including some former Bitcoin miners strategically pivoting to the next big thing. In particular, three companies stand out with this theme: Hut 8 Corp. NASDAQ: HUT, TeraWulf Inc. NASDAQ: WULF, and Core Scientific Inc. NASDAQ: CORZ. Each has seen their company’s stock soar more than 100% year-to-date (YTD), but are these gains based on true future cash flows or just hype from a transcendent rally?

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Pivoting From Bitcoin Miner to Data Center LandlordAll three companies share certain characteristics that appeal to AI hyperscalers. As former Bitcoin miners, these firms already own large buildings with scalable grid-connected electrical power. To tap into the AI rush, these companies have refurbished these locations with data center shells capable of supporting high-density GPU racks. Once the conversion is complete, these companies seek out tenants that bring in their own racks and build out the AI cloud infrastructure.

What makes the landlord comparison work is the nature of the deals these companies are signing with tenants. The agreements are typically triple-net and take-or-pay, meaning the tenants are responsible for taxes, insurance, and maintenance, and pay 100% of their bill whether they use all the capacity or not. The switch from Bitcoin mining to data center landlordship changes the mechanism by which these companies generate income. Instead of relying on volatile, commodity-linked revenue streams like mining, these firms can now boast dependable, recurring revenue through decade-long rent contracts. It was also a relatively easy transition, since Bitcoin mining and data center operations require many of the same skills and inputs, such as a constant power supply, a well-established foundation, and experience running dense computer labs.

3 Stocks Capitalizing on Data Center Energy DemandHut 8, TeraWulf, and Core Scientific haven’t ridden the coattails of the AI rally; they’re active participants with REIT-style contracts. But each is beholden to different counterparties and timelines, and the Bitcoin overhang remains. A deeper dive into the numbers is necessary before committing any investment capital to these names.

Hut 8 Corp: High Value Contracts But Revenue Realization Still Far OutHut 8 Today

$116.63 -3.88 (-3.22%)

As of 10:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$17.03▼

$140.80Price Target$113.95

Hut 8 has received some of the biggest headlines this year for its data center buildout, including a $4.25 billion senior secured note offering for its Beacon Point property in Texas. The Beacon Point data center is expected to provide up to 1,000 megawatts (MW) of capacity, with another potential 1,000 MW from the River Bend location in Louisiana. In Q1 2026, Hut 8 announced that the Beacon Point location had secured a 15-year triple-net lease valued at $9.8 billion, which could exceed $25 billion with escalators. The problem with this stock is timing. Neither River Bend nor Beacon Point is expected to be operational until 2027, and the company’s 16,000 Bitcoin token hoard is becoming an albatross. Q1 2026 earnings revealed a massive earnings-per-share (EPS) miss; the company lost $1.98 per share despite beating revenue projections by 40%. Bitcoin losses are weighing on the balance sheet, and the stock currently trades at 45 times sales.

Steady, secure revenue is coming, but the stock is priced for perfect execution. Both data centers are still under construction, and the decline in BTC is driving losses. The stock is up more than 150% YTD, and it might be time to take some profits. A bearish cross on the Moving Average Convergence Divergence (MACD) indicator has cast a cloud over the rally, which stands out since a bullish crossover heralded the biggest upswing in April.

TeraWulf: Strong Technicals, Weak Fundamentals, and High Short InterestTeraWulf Today

$28.17 -0.61 (-2.12%)

As of 10:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$3.70▼

$29.84Price Target$31.86

TeraWulf has an aggressive pipeline, and there’s evidence that its high-performance compute (HPC) transition is paying off. The company reported $21 million in HPC leasing revenue in Q1 2026, which was up more than 100% from Q4 2025. Some of its contracted tenants include Core42 and the Google-backed Fluidstack, which gives the stock a compelling narrative amidst the buildout. But TeraWulf has been issuing tons of equity to fund its buildout, including an $800 million stock offering in April. Shareholder dilution could be a reason why the stock carries 26% short interest as of the end of May.

The company only earned $34 million in revenue in Q1, down 1.1% year-over-year (YOY). Like Hut 8, the data center rent remains a future revenue stream, and the stock trades at 82 times sales. Despite the weak fundamentals, the stock chart is appealing. There’s strong price support at the 50-day moving average, and the Relative Strength Index (RSI) is in bullish territory without reaching overbought status. Traders seem to think the company can execute its plan flawlessly, but with shares up more than 140% YTD, there’s plenty of downside if missteps occur.

Core Scientific: Cheapest Valuation and Already Collecting RentCore Scientific Today

$28.38 -0.78 (-2.68%)

As of 10:32 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$11.81▼

$30.46Price Target$29.49

Unlike Hut 8 and TeraWulf, Core Scientific is already collecting rent from a key AI player in CoreWeave Inc. NASDAQ: CRWV. The company is providing CoreWeave with 243 MW of compute as of Q1 2026, with the remaining 347 MW scheduled to be online in early 2027. The total agreement is worth more than $10 billion, and Core Scientific raised the project’s cash gross-margin target to 80-85% from 75-80%. CORZ shares are also the cheapest from a valuation perspective at just 25 times sales. Q1 2026 also saw the company post a surprise EPS loss due to a $266 million mining impairment charge, but the Bitcoin mining operation is expected to be fully wound down by the end of 2026.

Core Scientific might have the cleanest fundamentals, but the chart is choppy at best. The bearish MACD cross earlier this month hints at fading momentum, and the price is struggling to surpass the June 2 all-time high of $29.05. However, CORZ has the strongest fundamentals, the smallest YTD gain (90%), and the only currently operational site. If one of these three stocks has upside not currently baked in, it's this one.

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TeraWulf stock is at critical resistance. What’s behind WULF new highs? BofA Initiates Coverage With Buy RatingBofA Securities analyst Michael Funk started coverage of TeraWulf with a Buy rating and set a $34 price objective. The target is built on a 9.5x EV-to-revenue multiple applied to Funk’s 2028 revenue forecast, a multiple the analyst said sits in line with peers and reflects a balance between the company’s growth potential and the risks tied to financing and development.

Funk’s bullish view is rooted in TeraWulf’s pivot away from bitcoin mining toward high-performance computing infrastructure built for AI workloads under long-term contracted leases.

The analyst projects the company’s capacity pipeline will grow from 60 megawatts to over 1 gigawatt while revenue climbs from $226 million in 2026 to $1.06 billion in 2027 and $1.8 billion in 2028. Net operating margins are forecast to reach around 85% as adjusted EBITDA jumps from $63 million in 2026 to $686 million in 2027 and $1.25 billion in 2028.

Site Portfolio And Upcoming MilestonesAccording to the note, TeraWulf’s contracted capacity totaled 522 megawatts in the first quarter of 2026 across its Lake Mariner site in New York and the Abernathy joint venture in Texas. Funk flagged the completion of Lake Mariner buildouts by year end 2026 and a customer announcement for the Justified Data project in Kentucky as near term catalysts with that site expected online in the second half of 2027.

The analyst also referenced TeraWulf’s newly added Muskie Data site in eastern Kentucky which is expected to bring 500 megawatts online in the second half of 2028 with another 500 megawatts following by 2030.

Fluidstack Leases And Power StrategyFunk highlighted TeraWulf’s lease agreements with Fluidstack which carry credit support from Google as a major factor strengthening the reliability of its revenue base. The analyst said robust AI demand combined with limited power availability across markets plays to TeraWulf’s strategy of choosing sites with existing high voltage transmission access which gives it a more predictable path to securing power.

Key Risks And OpportunitiesFunk identified financing access along with construction delays and tenant timing as the biggest risks to the thesis with labor shortages supply chain issues and local opposition as secondary concerns. He estimated that a slowdown of 10% to 20% in megawatt delivery would lower 2028 revenue by about 6% to 12% and reduce adjusted EBITDA by as much as 12.3%.

On the upside, Funk pointed to accelerating AI infrastructure demand and the potential for TeraWulf to secure better contract terms such as longer lease durations higher rate escalators and credit backstops as it builds a stronger track record with major customers.

WULF Shares Are JumpingWULF Price Action: TeraWulf shares were up 7.83% at $28.10 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro.

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Development timeline on track at WULF Compute

Delivers strong execution, advances transition to recurring HPC revenue, and
expands power-advantaged development pipeline

Reaffirms growth strategy targeting 250–500 MW of new contracted capacity annually

Closed $250 million revolving credit facility

EASTON, Md., May 08, 2026 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), which owns and operates vertically integrated, next-generation digital infrastructure primarily powered by low-carbon energy, today announced its financial results for the first quarter ended March 31, 2026 and provided an update on its operations, development and strategy.

First Quarter 2026 Highlights

Generated Q1 2026 revenue of $34.0 million, including $21.0 million of HPC lease revenue.Maintained strong liquidity position, with approximately $3.1 billion of cash and restricted cash as of quarter-end.60 MW of operational critical IT HPC capacity for Core42 at Lake Mariner as of March 31, 2026.Nearing completion on CB-3 construction at Lake Mariner, with energization aligned to customer hardware deployment. CB-4 and CB-5 remain on schedule for delivery and rent commencement in 2026.Expanded development platform with acquisition of Hawesville, Kentucky, a large-scale site with immediate access to 480 MW of grid-connected power.Closed revolving credit facility providing up to $250 million of committed capacity, supported by a syndicate of leading global financial institutions. Management Commentary

Paul Prager, Chairman and Chief Executive Officer of TeraWulf, commented:

“The first quarter of 2026 was defined by execution. We entered the year with a fully established platform, including sites, contracts, and capital, and are now converting that foundation into operating performance and recurring revenue.

At Lake Mariner, we have 60 megawatts of energized critical IT capacity for Core42 and began generating meaningful lease revenue during the quarter. At the same time, we continue to advance construction in close coordination with our second tenant, Fluidstack, aligning infrastructure delivery with hardware deployment. CB-3 remains on schedule, and execution across the campus continues to progress well.

More broadly, we are building a power-advantaged platform that we believe is increasingly differentiated in a market constrained by access to power. Our strategy is unchanged, and we remain focused on disciplined execution."

Patrick Fleury, Chief Financial Officer of TeraWulf, added:

“The first quarter reflects a more stable, contracted revenue model. HPC lease revenue contributed $21.0 million in the period, representing the initial ramp of long-term customer agreements at Lake Mariner.

We ended the quarter with approximately $3.1 billion of cash and restricted cash, providing substantial liquidity to fund our development pipeline. Our capital structure is designed to align long-term financing with contracted cash flows, supporting disciplined growth while maintaining financial flexibility.

As we continue to scale, we expect the business to be increasingly driven by recurring, contracted revenue, reducing exposure to the volatility historically associated with bitcoin mining.”

Operational Update

During the first quarter of 2026, TeraWulf continued to advance Lake Mariner, one of North America’s largest HPC campuses:

60 MW of critical IT capacity energized and generating revenue as of March 31, 2026.Continued progress across HPC development buildings, including delivery of CB-3 capacity in May 2026.Ongoing coordination with Fluidstack and Google to align infrastructure delivery with technology deployment. The Company continues to repurpose portions of its legacy bitcoin mining footprint to support higher-value HPC workloads, reflecting its transition toward contracted, long-duration compute infrastructure.

With regard to the Abernathy joint venture, which is designed to support 168 critical IT MW under a 25-year lease with annual escalators, construction is progressing with delivery targeted for the fourth quarter of 2026.

Development Pipeline and Expansion

TeraWulf continues to expand its national footprint with a focus on power-advantaged sites:

Justified Data (Hawesville, Kentucky):

Large-scale HPC campus with approximately 480 MW of immediate grid-connected power availabilityOver 250 buildable acres with significant expansion potentialLocated within 300 miles of several major Midwest metropolitan areas Lake Hawkeye (Lansing, New York)

Redevelopment of a 183-acre leased area on a legacy industrial sitePhase I includes approximately 150 MW of power availability, expanding to 300 MW in Phase IICurrently in site plan review Chesapeake Data (Morgantown, Maryland):

Approximately 210 MW grid-connected generation capacitySubstantial electrical infrastructure and property, with ability to expand to up to 1 GWAcquisition remains subject to customary regulatory approvals, including FERC Strategic Positioning

TeraWulf continues to position its platform to capture opportunities across multiple pathways to power, including:

Near-term grid-connected capacityOn-site generationPotential utility partnerships as interconnection dynamics evolve As demand for large-scale compute infrastructure accelerates, access to power has become the primary constraint across the industry. In this environment, utilities are increasingly focused on advancing projects that can be delivered by experienced, well-capitalized, and creditworthy counterparties.

TeraWulf believes this dynamic creates a growing opportunity to partner directly with utilities to develop new power-backed infrastructure. As interconnection queues are rationalized and prioritized, the Company is well positioned to participate in this next phase of market evolution given its experience in power development, operational track record, and access to long-term capital.

Investor Conference Call and Webcast

The Company will host its earnings conference call and webcast for the first quarter ended March 31, 2026, today, May 8, 2026, at 8:00 a.m. Eastern Time. The call will be available for replay in the “Events & Presentations” section of the Company’s website at https://investors.terawulf.com/events-and-presentations/.

About TeraWulf

TeraWulf develops, owns, and operates environmentally sustainable, industrial-scale data center infrastructure in the United States, purpose-built for high-performance computing (HPC) hosting and bitcoin mining. Led by a team of veteran energy infrastructure entrepreneurs, TeraWulf is committed to innovation and operational excellence, with a mission to lead the market in large-scale digital infrastructure by serving both its own compute requirements and those of top-tier HPC clients as a trusted hosting partner.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements include statements concerning anticipated future events and expectations that are not historical facts. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. In addition, forward-looking statements are typically identified by words such as “plan,” “believe,” “goal,” “target,” “aim,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “seek,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “strategy,” “opportunity,” “predict,” “should,” “would” and other similar words and expressions, although the absence of these words or expressions does not mean that a statement is not forward-looking. Forward-looking statements are based on the current expectations and beliefs of TeraWulf’s management and are inherently subject to a number of factors, risks, uncertainties and assumptions and their potential effects. There can be no assurance that future developments will be those that have been anticipated. Actual results may vary materially from those expressed or implied by forward-looking statements based on a number of factors, risks, uncertainties and assumptions, including, among others: (1) TeraWulf’s ability to attract additional customers to lease its HPC data centers; (2) TeraWulf’s ability to complete our data center campuses and future strategic growth initiatives in a timely manner or within anticipated cost estimates; (3) operational risks associated with our data centers and our ability to perform under its existing data center lease agreements; (4) changes in applicable laws, regulations and/or permits affecting TeraWulf’s operations or the industries in which it operates; (5) failure to obtain adequate financing on a timely basis and/or on acceptable terms with regard to expansion or existing operations; (6) adverse geopolitical or economic conditions, including a high inflationary environment, the implementation of new tariffs and more restrictive trade regulations; (7) the potential of cybercrime, money-laundering, malware infections and phishing and/or loss and interference as a result of equipment malfunction or break-down, physical disaster, data security breach, computer malfunction or sabotage (and the costs associated with any of the foregoing); (8) the availability and cost of power as well as electrical infrastructure equipment necessary to maintain and grow the business and operations of TeraWulf; and (9) other risks and uncertainties detailed from time to time in TeraWulf’s filings with the Securities and Exchange Commission (“SEC”). Potential investors, stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. TeraWulf does not assume any obligation to publicly update any forward-looking statement after it was made, whether as a result of new information, future events or otherwise, except as required by law or regulation. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements and the discussion of risk factors contained in the Company’s filings with the SEC, which are available at www.sec.gov.

Investors:
[email protected]

Media:
[email protected]

CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2026 AND DECEMBER 31, 2025
(In thousands, except number of shares and par value; unaudited)
 March 31,
2026 December
31, 2025ASSETS   CURRENT ASSETS:   Cash and cash equivalents$2,629,995  $3,266,389 Restricted cash 196,282   189,933 Accounts receivable 5,604   1,212 Digital assets 1,237   270 Prepaid expenses 20,573   6,272 Other current assets 13,737   14,197 Total current assets 2,867,428   3,478,273 Property, plant and equipment, net 2,582,169   1,507,699 Equity in net assets of investee 434,793   446,008 Goodwill 55,457   55,457 Operating lease right-of-use asset 102,866   103,975 Finance lease right-of-use asset 118,576   119,338 Restricted cash 266,466   266,453 Deferred charges 572,774   572,888 Other assets 8,257   8,091 TOTAL ASSETS$7,008,786  $6,558,182     LIABILITIES AND (DEFICIT) EQUITY   CURRENT LIABILITIES:   Accounts payable$227,598  $65,139 Accrued construction liabilities 201,779   102,582 Accrued interest 114,825   52,775 Other current liabilities 87,944   74,170 Other amounts due to related parties 459   200 Current portion of deferred rent liability 56,683   58,184 Current portion of operating lease liability 2,065   2,015 Current portion of finance lease liability 2   2 Warrant liabilities 1,061,024   844,698 Short-term debt 98,573   — Current portion of long-term debt 43,564   46,316 Short-term convertible notes 490,354   489,767 Total current liabilities 2,384,870   1,735,848 Deferred rent liability, net of current portion 14,035   23,285 Operating lease liability, net of current portion 21,760   22,309 Finance lease liability, net of current portion 289   289 Long-term debt 3,060,194   3,052,240 Convertible notes 1,597,266   1,582,788 Deferred tax liabilities 104   76 Other liabilities 7,888   902 TOTAL LIABILITIES 7,086,406   6,417,737     Commitments and Contingencies (See Note 12)       (DEFICIT) EQUITY:   Preferred stock, $0.001 par value, 100,000,000 authorized at March 31, 2026 and December 31, 2025; none issued and outstanding at March 31, 2026 and December 31, 2025; aggregate liquidation preference of $0 at March 31, 2026 and December 31, 2025 —   — Common stock, $0.001 par value, 950,000,000 authorized at March 31, 2026 and December 31, 2025; 449,519,078 and 444,534,694 issued at March 31, 2026 and December 31, 2025, respectively; 425,050,328 and 420,065,944 outstanding at March 31, 2026 and December 31, 2025, respectively 450   444 Additional paid-in capital 1,493,611   1,285,202 Treasury stock at cost, 24,468,750 at March 31, 2026 and December 31, 2025 (151,509)  (151,509)Accumulated deficit (1,421,326)  (993,692)Total TeraWulf Inc. stockholders' (deficit) equity (78,774)  140,445 Noncontrolling interests 1,154   — Total (deficit) equity (77,620)  140,445 TOTAL LIABILITIES AND (DEFICIT) EQUITY$7,008,786  $6,558,182  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(In thousands, except number of shares and loss per common share)
 Three Months Ended March
31,  2026   2025     Revenue:   Digital asset revenue$12,990  $34,405 HPC lease revenue 21,022   — Total revenue 34,012   34,405     Costs and expenses:   Cost of revenue (exclusive of depreciation shown below) 2,361   24,553 Operating expenses 9,016   1,144 Operating expenses – related party 2,186   1,748 Selling, general and administrative expenses 127,605   46,573 Selling, general and administrative expenses – related party 159   3,571 Depreciation 28,477   15,574 Loss on fair value of digital assets, net 653   870 Impairment of property, plant, and equipment 25,697   — Total costs and expenses 196,154   94,033     Operating loss (162,142)  (59,628)Interest expense (67,071)  (4,049)Change in fair value of warrants (216,325)  — Interest income 29,411   2,259 Loss before income tax and equity in net loss of investee (416,127)  (61,418)Income tax provision (28)  — Equity in net loss of investee, net of tax (11,548)  — Net loss (427,703)  (61,418)Less: net loss attributable to noncontrolling interests (69)  — Net loss attributable to TeraWulf Inc$(427,634) $(61,418)    Loss per common share:   Basic and diluted$(1.01) $(0.16)    Weighted average common shares outstanding:   Basic and diluted 422,999,671   383,149,511  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(In thousands; unaudited)
 Three Months Ended March 31,  2026   2025 CASH FLOWS FROM OPERATING ACTIVITIES:   Net loss$(427,703) $(61,418)Adjustments to reconcile net loss to net cash (used in) provided by operating activities:   Amortization of debt issuance costs, commitment fees and accretion of debt discount 13,224   607 Stock-based compensation expense 101,418   38,674 Depreciation 28,477   15,574 Accretion of asset retirement obligations 168   — Amortization of right-of-use asset 1,871   685 Revenue recognized from digital assets mined and hosting services (12,990)  (34,417)Loss on fair value of digital assets, net 653   870 Impairment of property, plant, and equipment 25,697   — Change in fair value of warrants 216,325   — Deferred income tax provision 28   — Equity in net loss of investee, net of tax 11,548   — Changes in operating assets and liabilities:   Increase in accounts receivable (4,503)  — Increase in prepaid expenses (14,301)  (2,306)Increase in other current assets (9,134)  (1,289)Decrease in deferred charges 114   — Increase in other assets 5,807   (7,700)Increase in accounts payable 4,315   13,844 Increase in accrued interest and other current liabilities 52,548   4,359 Increase (decrease) in other amounts due to related parties 259   (990)(Decrease) increase in deferred rent liability (10,751)  90,000 Decrease in operating lease liability (499)  (6)Decrease in other liabilities (162)  — Net cash (used in) provided by operating activities (17,591)  56,487     CASH FLOWS FROM INVESTING ACTIVITIES:   Purchase of and deposits on plant and equipment (522,954)  (93,687)Cash paid for asset acquisition (201,350)  — Proceeds from sale of digital assets 11,481   32,623 Net cash used in investing activities (712,823)  (61,064)    CASH FLOWS FROM FINANCING ACTIVITIES:   Proceeds from issuance of short-term debt, net of issuance costs paid of $7,250 and $0 92,750   — Proceeds from issuance of common stock, net of issuance costs paid of $0 and $0 8,956   — Proceeds from exercise of warrants 3,983   — Purchase of treasury stock —   (33,292)Payments of tax withholding related to net share settlements of stock-based compensation awards (5,307)  (18,034)Net cash provided by (used in) financing activities 100,382   (51,326)    Net change in cash and cash equivalents (630,032)  (55,903)Cash, cash equivalents and restricted cash at beginning of period 3,722,775   274,065 Cash, cash equivalents and restricted cash at end of period$3,092,743  $218,162     Cash paid during the period for:   Interest$5,310  $5 Income taxes$—  $—  Non-GAAP Measure

The Company presents Adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States (“U.S. GAAP”). The Company defines non-GAAP “Adjusted EBITDA” as net loss adjusted for: (i) impacts of interest, taxes, depreciation and amortization; (ii) stock-based compensation expense, amortization of right-of-use asset and accretion of asset retirement obligations, which are non-cash items that the Company believes are not reflective of its general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) equity in net loss of investee, net of tax, related to the Abernathy Joint Venture; (iv) interest income for which management believes is not reflective of the Company’s ongoing operating activities; (v) change in fair value of warrant liabilities, and impairment of property, plant and equipment, net, which are not reflective of the Company’s general business performance; and (vi) acquisition-related transaction costs which management believes are not reflective of the Company’s ongoing operating activities.

Management believes that providing this non-GAAP financial measure allows for meaningful comparisons between the Company's core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management's internal use of non-GAAP Adjusted EBITDA, management believes that adjusted EBITDA is also useful to investors and analysts in comparing the Company’s performance across reporting periods on a consistent basis. Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate the Company’s bitcoin related revenues). For example, the Company expects that share-based compensation expense, which is excluded from Adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, directors and consultants. Additionally, management does not consider any of the excluded items to be expenses necessary to generate the Company’s bitcoin related revenue.

The Company's Adjusted EBITDA measure may not be directly comparable to similar measures provided by other companies in the Company’s industry, as other companies in the Company’s industry may calculate non-GAAP financial results differently. The Company's Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered as an alternative to net loss or any other measure of performance derived in accordance with U.S. GAAP. Although management utilizes internally and presents Adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by U.S. GAAP financial results. Accordingly, Adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company’s condensed consolidated financial statements, which have been prepared in accordance with U.S. GAAP.

The following table is a reconciliation of the Company’s non-GAAP Adjusted EBITDA to its most directly comparable U.S. GAAP measure (i.e., net loss) for the periods indicated (in thousands):

 Three Months Ended March
31,  2026   2025 Net loss attributable to TeraWulf, Inc$        (427,634) $        (61,418)Net loss attributable to non-controlling interest         (69)          —         Net loss         (427,703)          (61,418)Adjustments to reconcile net loss to non-GAAP Adjusted EBITDA:   Equity in net loss of investee, net of tax         11,548           — Income tax provision         28           — Interest income         (29,411)          (2,259)Change in fair value of warrants         216,325           — Interest expense         67,071           4,049 Impairment of property, plant, and equipment         25,697           — Depreciation         28,477           15,574 Accretion of asset retirement obligations         168           — Amortization of right-of-use asset         1,871           685 Stock-based compensation expense         101,418           38,674 Acquisition-related transaction costs         438           — Non-GAAP Adjusted EBITDA$        (4,073) $        (4,695)

TeraWulf Inc. (WULF - Free Report) came out with a quarterly loss of $0.44 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to a loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -169.44%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced a loss of $0.28, delivering a surprise of -115.38%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

TeraWulf, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $34.01 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $34.4 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

TeraWulf shares have added about 109.1% since the beginning of the year versus the S&P 500's gain of 7.2%.

What's Next for TeraWulf?While TeraWulf has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for TeraWulf was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.19 on $48.21 million in revenues for the coming quarter and -$0.55 on $336.92 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, BitFuFu Inc. (FUFU - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

BitFuFu Inc.'s revenues are expected to be $90.97 million, up 16.6% from the year-ago quarter.

Is 2026 The Year to Load Up on Crypto Miners?TeraWulf NASDAQ: WULF said its first-quarter 2026 results reflected a business shifting from Bitcoin mining toward contracted high-performance computing, or HPC, leasing revenue, as management highlighted progress at its Lake Mariner campus and continued demand for power-backed AI infrastructure.

Chairman and CEO Paul Prager said the quarter was “about execution,” with the company beginning to convert its platform of sites, contracts, capital and strategy into operating performance and recurring revenue. He said TeraWulf had 60 megawatts of critical IT capacity energized and generating revenue at Lake Mariner as of March 31, with HPC leasing contributing $21 million of revenue during the quarter.

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2 Stocks to Avoid as Crypto Momentum Wanes“This is the first period where HPC leasing is meaningfully reflected in our financials,” Prager said. He added that TeraWulf is deliberately transitioning portions of its legacy mining footprint to support higher-value HPC workloads. “Mining served its purpose,” he said, citing its role in helping the company build infrastructure, monetize power and develop operating expertise.

HPC Revenue Ramps as Mining Declines Chief Financial Officer Patrick Fleury said first-quarter revenue totaled $34 million, down from $35.8 million in the fourth quarter of 2025, primarily due to lower Bitcoin production. HPC lease revenue increased 117% sequentially to $21 million from $9.7 million in the prior quarter.

Market Momentum: 3 Stocks Poised for Major BreakoutsFleury said CB2 at Lake Mariner achieved “ready for service” status in March, commencing the lease with Core42 and bringing all 60 critical megawatts of capacity for that customer into service. He said the company expects its revenue mix to continue shifting toward stable contracted HPC revenue as additional buildings come online in the second, third and fourth quarters of 2026.

Cost of revenue, excluding depreciation, fell to $2.4 million from $18.9 million in the fourth quarter. Fleury attributed part of the decline to demand response proceeds, which are recorded as a reduction in cost of revenue and increased to $14.1 million in the first quarter from $4.4 million in the fourth quarter.

The company reported a GAAP net loss of $427.6 million, compared with a net loss of $126.6 million in the fourth quarter. Fleury said the wider loss was primarily driven by non-cash fair value adjustments tied to Google warrants and non-cash stock-based compensation. Adjusted EBITDA was negative $4.1 million, improving from negative $50.9 million in the fourth quarter.

As of March 31, TeraWulf had $3.1 billion of cash and restricted cash, $7 billion of total assets and $7.1 billion of total liabilities. Fleury said the parent entity had approximately $300 million of available unrestricted cash at quarter-end, increasing to approximately $1.5 billion after incorporating equity raised in April.

Lake Mariner Construction Continues Chief Technology Officer Nazar Khan said execution at Lake Mariner continued to progress. The second data hall in CB2 came online during the quarter, completing the Core42 capacity. For the Fluidstack deployment, which includes CB3, CB4 and CB5, Khan said all major project timelines remained unchanged from the prior update.

CB3 remains on track for TeraWulf to complete its defined scope by the end of May, with the company coordinating with Fluidstack and Google on final energization and lease commencement. CB4 and CB5 remain on track for delivery in the third and fourth quarters of 2026, respectively.

Prager said customer-driven design refinements at Lake Mariner were not disruptions, but part of building infrastructure for sophisticated counterparties. “We are building to evolving hardware and tenant requirements, not in anticipation of them,” he said.

Kentucky, Maryland and Power Strategy Prager said the company continues to expand its platform, including the Hawesville, Kentucky site, which he described as a large-scale campus with immediate power availability and significant expansion potential. He said TeraWulf remains in late-stage negotiations for a customer at the site and reiterated confidence that a customer would be in place in the second quarter.

Fleury said demand for near-term power remains strong and that TeraWulf is targeting 480 megawatts online in Kentucky in the second half of 2027. Subsequent to the quarter, the company repaid a $100 million draw on its bridge credit facility and terminated the facility. Fleury said a portion of the approximately $1.2 billion of equity raised year to date is expected to fund TeraWulf’s equity contribution to the Kentucky project.

In Maryland, Prager said the company is progressing the Morgantown acquisition, which remains subject to regulatory approval. He said TeraWulf expects a Federal Energy Regulatory Commission decision in the mid-summer timeframe. The site is attractive because of its location in a power-constrained region, he said, and the company intends to build a larger gas facility there while ensuring compliance with grid obligations.

Khan said the existing approximately 210 megawatts of operating capacity at Morgantown would continue bidding into the PJM market as peaker capacity. He said planned battery storage, gas generation and load would be incremental to the existing capacity.

Management Sees Power as Key Constraint Prager said the broader AI build-out is increasingly constrained by power, including interconnection delays, transmission limits and the need for new generation. “The constraint is not GPUs, it is power,” he said. He described TeraWulf as “fundamentally a power company that builds digital infrastructure, not the other way around.”

Management said the company’s development strategy is focused on three paths to power: immediate access, as in Hawesville; “bring your own generation,” as pursued in Morgantown; and utility partnerships as interconnection queues are rationalized and prioritized.

During the question-and-answer session, Khan said utilities may have former generation sites or other locations where they want load but may also need new generation to accompany it. He said TeraWulf is having discussions across the country about helping bring both supply and load into utility territories.

Prager said demand remains strong from hyperscalers and AI compute platforms. He added that TeraWulf’s approach remains disciplined: “We do not build on speculation. We contract first, deploy capital second.”

Mining Footprint to Wind Down Over Time Fleury said the company’s Bitcoin mining business continues to support the transition to HPC, including through demand response participation. He estimated TeraWulf is currently operating between five and six exahash and said the company does not plan to put significant additional capital into the business.

As buildings or power feeds are repositioned for HPC leasing, mining capacity is expected to decline gradually. Fleury said the company would likely be out of Bitcoin mining “certainly by the next halving,” while noting that mining still provides grid services and cash flow during the transition.

Looking ahead, Prager said the company is focused on delivering capacity, energizing megawatts and converting contracts into durable recurring cash flow. “That is what will define 2026,” he said.

About TeraWulf NASDAQ: WULFTeraWulf, Inc NASDAQ: WULF is a digital asset infrastructure company focused on the development and operation of zero-carbon bitcoin mining facilities. The company integrates sustainable power generation with high-density data center technologies to deliver environmentally responsible digital asset mining services. Its core business revolves around designing, building and operating large-scale mining projects powered exclusively by renewable or emissions-free energy sources.

One of TeraWulf’s flagship projects is “Project Nautilus,” located in Tompkins County, New York, which harnesses hydroelectric power sourced from the New York State Electric & Gas (NYSEG) grid.

Featured StoriesFive stocks we like better than TeraWulfThis instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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TeraWulf Inc (NASDAQ:WULF) shares rose in early trading on Monday, after the company reported upbeat first-quarter results on Friday.

Here are the key analyst insights:

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Needham: TeraWulf reported revenue of $34 million, with HPC (high-performance computing) lease revenue growing 117% sequentially to $21 million, being partially offset by a 50% decline in mining revenue, Todaro said in a note. At $2.4 million, the company's COGS (cost of goods sold) was significantly below Needham's estimate of $16 million, he added.

TeraWulf posted an adjusted EBITDA loss of $4.1 million, substantially below Needham's estimate of $2.5 million and management’s pre-announced range of breakeven to $3 million, the analyst stated. Management cited the "reclassification of certain costs" as the reason for the shortfall, he further wrote.

The company's Kentucky site is among the next in the sector to be signed, and management expects to have a lease by the end of the second quarter of this year, Todaro said.

Rosenblatt Securities: TeraWulf's results reflected "encouraging" trends, with HPC revenues exceeding Bitcoin mining revenues, Brendler said. While the company had already identified HPC as the driver of its revenues in the quarter, the gap was much wider than expected, he added.

TeraWulf took advantage of harsh weather conditions that significantly boosted power rates and helped take demand response revenues to a record $14.1 million, up 404% year-on-year, the analyst stated. He further noted the following developments that boost the future of HPC:

Lake Mariner development is on track and interconnection approval for the next 250 MW is expected by the middle of this year, "with availability shortly thereafter." The Hawesville, Kentucky, site is already in the late stage, and the next contract is likely to use this site. "WULF also announced a new $250M corporate revolver supported by a syndicate of eight global banks, which we view as another important validation of both the underlying HPC model and WULF's execution," Brendler further wrote.

WULF Price Action: Shares of TeraWulf had risen by 3.01% to $24.10 at the time of publication on Monday.

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TeraWulf proves their AI beneficiary status by bringing power and load demand together, allowing them to tap into the multi-year cloud supercycle. This is why their successful pivot to high-growth HPC operations has been well rewarded, as observed in the premium EV/Sales of 41.36x compared to the sector median at 3x. WULF's high-growth cadence also comes at a price—deteriorating balance sheet at net debt of $2.65B, elevated SBC to revenue ratio, and shareholder dilution risks.

Speaking recently to Bloomberg Tech about the state of AI infrastructure, Roberts said a company looking to build a 1-gigawatt AI factory today likely would not get its first compute online until 2030.

The Next AI BottleneckThe comment highlights a growing challenge facing the AI industry as hyperscalers, model developers and data-center operators race to expand capacity.

While much of Wall Street’s attention remains focused on Nvidia’s GPUs, securing the chips is increasingly becoming just one piece of the puzzle.

Bringing a large-scale AI campus online requires access to power, transmission infrastructure, substations, permits and years of development work. As demand for AI compute continues to surge, the industry’s biggest constraint may no longer fit inside a server rack.

Why Power Stocks Are Entering The AI ConversationRoberts’ comments help explain why investors have increasingly turned their attention to companies sitting at the intersection of power and AI infrastructure.

Names such as Bloom Energy Corp. (NYSE:BE), which provides on-site power solutions, are emerging as AI-adjacent plays as data centers seek reliable electricity sources.

The AI Arms Race Is ChangingThe first phase of the AI boom was about securing GPUs.

The next phase may be about securing megawatts.

That shift could reshape how investors think about AI winners. While Nvidia remains at the center of the AI ecosystem, companies controlling power generation, grid access and energy infrastructure are becoming increasingly important as developers pursue larger training clusters and inference workloads.

In a market obsessed with chips, Roberts’ 2030 timeline serves as a reminder that building AI infrastructure involves much more than buying hardware.

Sometimes the hardest part is simply getting enough electricity to turn it on.

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TeraWulf shares are powering higher. What’s fueling WULF momentum? TeraWulf Expands Kentucky AI Infrastructure FootprintTeraWulf said the newly acquired Muskie Data Campus is expected to support more than 1 gigawatt of data center capacity over time. The company said delivery of the initial 500 megawatts is expected to ramp beginning in the second half of 2028, with an additional 500 megawatts targeted for delivery in the second half of 2030. 

The site, acquired from Industrial Equity Partners, is located within the 1,000-acre EastPark Industrial Park and includes approximately 285 acres of owned and controlled land capable of supporting hyperscale AI and HPC infrastructure, with optional adjacent acreage available for future expansion. 

TeraWulf said Kentucky Power, an AEP company, is constructing a 345 kV substation connected to the existing 765 kV transmission network to support the campus. The company also said transmission infrastructure and energy service agreements were executed concurrently with the acquisition. 

According to the company, the site is already zoned for its intended use, permitting activities are underway and only limited site work is required to support data center construction. TeraWulf said the campus provides a clear pathway to near-term construction commencement and accelerated time-to-power. 

"This acquisition further reinforces the strategy we discussed on our first quarter earnings call: securing and developing large-scale, power-advantaged sites capable of supporting the next generation of HPC workloads," said CEO Paul Prager. 

Prager added that the Muskie Data Campus combines scalable power, transmission infrastructure and development readiness designed to support hyperscale AI workloads. 

TeraWulf said the Muskie Data Campus represents its second major digital infrastructure campus in Kentucky alongside its 480 MW Justified Data campus in Hancock County.

TeraWulf Shares ClimbWULF Price Action: At the time of publication, TeraWulf shares are trading 13.06% higher at $25.80, according to data from Benzinga Pro.

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Key Takeaways Strategy remains the largest corporate Bitcoin holder with more than 843,000 BTC on its balance sheet.MSTR reported a $12.8B net loss in Q1 2026 due to a Bitcoin fair-value decline.TeraWulf's Q1 2026 HPC lease revenues exceeded Bitcoin mining revenues, highlighting diversification. Strategy (MSTR - Free Report) and TeraWulf (WULF - Free Report) are both bitcoin-focused stocks, but they offer investors exposure to the digital asset market through fundamentally different mechanisms.

Strategy operates primarily as a Bitcoin treasury company, aggressively accumulating BTC while maintaining its legacy enterprise analytics software business. Its stock magnifies Bitcoin price volatility, making it a preferred equity for direct BTC exposure. In contrast, TeraWulf is a pure-play Bitcoin miner focused on low-cost, sustainable mining operations in the United States while expanding into high-performance computing (HPC) and AI infrastructure to diversify future growth.

As demand for the digital asset grows, investors are increasingly evaluating Bitcoin-related stocks. Comparing Strategy's Bitcoin accumulation strategy with TeraWulf's mining-driven approach can help investors determine which stocks are likely to deliver stronger returns over time.

The Case for MSTR StockStrategy's transformation into a Bitcoin treasury company has created substantial shareholder value, but it has also significantly increased the stock's risk profile. The company’s financial performance is now largely tied to Bitcoin price movements rather than its legacy enterprise analytics software business.

In first-quarter 2026, Strategy reported a massive operating loss of $14.5 billion and a net loss of $12.8 billion, largely due to a $14.5 billion unrealized fair-value loss on its Bitcoin holdings following a decline in Bitcoin prices. While software revenues grew 11.9% year over year to $124.3 million, the business remains small relative to the scale of its Bitcoin exposure, highlighting the view that MSTR increasingly trades as a leveraged Bitcoin proxy rather than a software stock.

Valuation remains another concern. Strategy's enterprise value stood at roughly $82 billion compared with a Bitcoin reserve worth about $64 billion, implying an mNAV of 1.27x. Investors are therefore paying a premium above the value of the underlying Bitcoin holdings. The company also depends heavily on recurring capital raises to fund additional Bitcoin purchases, while a 23% decline in Bitcoin prices reduced digital asset values from $58.9 billion to $51.6 billion during the first quarter.

Despite these concerns, Strategy remains the largest corporate Bitcoin holder globally, owning more than 843,000 BTC. Strong investor demand has enabled it to raise $11.7 billion in capital year to date, while low net leverage and solid liquidity provide financial flexibility. If Bitcoin adoption and prices continue to accelerate, Strategy’s unmatched Bitcoin reserve could create significant long-term upside for shareholders.

The Zacks Consensus Estimate for MSTR’s 2026 earnings is pegged at $116.7 per share, down 14.4% over the past 30 days, raising growth concerns.

Image Source: Zacks Investment Research

The Case for WULF StockTeraWulf is rapidly evolving from a pure-play Bitcoin miner into a digital infrastructure company focused on high-performance computing (HPC) and AI data centers. This transition is already gaining traction, as first-quarter 2026 HPC lease revenues of $21 million surpassed Bitcoin mining revenues of roughly $13 million, demonstrating the growing importance of its recurring infrastructure business.

The company controls a 2.3 GW HPC development pipeline across five sites, with 522 MW already leased under long-term agreements. Backed by customers such as Core42, Google and Fluidstack, TeraWulf has secured more than $13 billion in contracted revenues. Its ability to control power-rich sites is a major competitive advantage at a time when electricity availability is emerging as the key bottleneck for AI infrastructure expansion.

Financially, TeraWulf generated $34 million in first-quarter revenues and ended the period with $3.1 billion in cash and restricted cash, providing ample resources to fund growth initiatives. Management is targeting 250-500 MW of new contracted HPC capacity annually while expanding facilities at Lake Mariner and advancing the Abernathy joint venture.

The company's February 2026 acquisitions further strengthen its growth outlook. Hawesville, KY, adds 480 MW of immediately available power, while the Morgantown asset offers 210 MW of generation capacity with expansion potential approaching 1 GW.

Investors should still monitor risks, including Bitcoin price volatility, execution challenges related to data-center construction, customer deployments, financing requirements and regulatory approvals. Morgantown's pending regulatory review also creates uncertainty.

The Zacks Consensus Estimate for WULF’s 2026 loss is currently pegged at 64 cents per share, down over the past 30 days. However, this represents a sharp year-over-year improvement from a loss of $1.66 per share.

Image Source: Zacks Investment Research

Stock Performance & Valuation: MSTR vs. WULFWith a year-to-date surge of 119.1%, TeraWulf has significantly outperformed Strategy's 5.2% return, reflecting growing investor confidence in its evolution beyond Bitcoin mining. The company's expanding AI and HPC infrastructure platform, securing long-term contracted revenues and expanding power infrastructure footprint have strengthened its long-term growth prospects.

MSTR vs. WULF Stock Performance Chart
Image Source: Zacks Investment Research

On the valuation front, TeraWulf appears considerably less expensive than Strategy, trading at a forward 12-month price-to-sales (P/S) ratio of 20.56 compared with Strategy's lofty 111.75. The valuation gap indicates that TeraWulf offers investors exposure to multiple growth drivers at a more reasonable premium.

Image Source: Zacks Investment Research

Conclusion: TeraWulf Takes the LeadWhile both stocks offer exposure to Bitcoin, TeraWulf appears to be in an advantageous position. Its expanding AI and HPC infrastructure business, growing contracted revenue base, stronger stock performance and significantly lower valuation create multiple avenues for growth beyond Bitcoin. Compared with Strategy's Bitcoin-centric model, WULF seems like a better investment option.

While WULF carries a Zacks Rank #3 (Hold) at present, MSTR has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Paul Prager, Terawulf CEO, joins 'Power Lunch' to discuss the insatiable demand for electricity around data centers, energy infrastructure and much more.