Beacon Pointe Advisors LLC purchased a new stake in TeraWulf Inc. (NASDAQ:WULF – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 76,323 shares of the company’s stock, valued at approximately $1,885,000.
A number of other institutional investors and hedge funds also recently modified their holdings of WULF. Advisory Services Network LLC acquired a new position in shares of TeraWulf in the 3rd quarter valued at about $29,000. Vermillion Wealth Management Inc. grew its holdings in shares of TeraWulf by 1,191.0% during the 4th quarter. Vermillion Wealth Management Inc. now owns 2,595 shares of the company’s stock worth $30,000 after purchasing an additional 2,394 shares during the period. Solstein Capital LLC acquired a new stake in TeraWulf during the 4th quarter worth approximately $34,000. Comerica Bank increased its position in TeraWulf by 3,748.5% during the 1st quarter. Comerica Bank now owns 12,700 shares of the company’s stock worth $35,000 after purchasing an additional 12,370 shares in the last quarter. Finally, CoreCap Advisors LLC raised its holdings in TeraWulf by 106.7% in the second quarter. CoreCap Advisors LLC now owns 1,447 shares of the company’s stock valued at $36,000 after buying an additional 747 shares during the period. Institutional investors and hedge funds own 62.49% of the company’s stock.
Insider Activity In other TeraWulf news, CEO Paul B. Prager sold 137,500 shares of the business’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $17.06, for a total transaction of $2,345,750.00. Following the completion of the transaction, the chief executive officer directly owned 3,807,552 shares of the company’s stock, valued at $64,956,837.12. The trade was a 3.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael C. Bucella bought 2,860 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was purchased at an average price of $17.47 per share, with a total value of $49,964.20. Following the transaction, the director owned 344,704 shares in the company, valued at $6,021,978.88. The trade was a 0.84% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 15.90% of the company’s stock.
Wall Street Analyst Weigh In A number of brokerages have weighed in on WULF. Chardan Capital reaffirmed a “buy” rating and set a $32.00 price target on shares of TeraWulf in a research report on Wednesday, August 5th. Cantor Fitzgerald reissued an “overweight” rating and issued a $37.00 price objective on shares of TeraWulf in a research report on Wednesday, July 15th. HC Wainwright reissued a “buy” rating on shares of TeraWulf in a research note on Friday, August 21st. Weiss Ratings restated a “sell (d-)” rating on shares of TeraWulf in a report on Wednesday, June 24th. Finally, Bank of America began coverage on shares of TeraWulf in a research report on Monday, June 15th. They set a “buy” rating and a $34.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $34.21. Read Our Latest Stock Analysis on WULF
TeraWulf Stock Performance Shares of NASDAQ WULF opened at $15.35 on Monday. TeraWulf Inc. has a 12-month low of $8.60 and a 12-month high of $29.84. The company has a market cap of $7.66 billion, a price-to-earnings ratio of -3.51 and a beta of 3.76. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 27.25. The stock’s 50 day simple moving average is $19.51 and its 200 day simple moving average is $19.72.
TeraWulf (NASDAQ:WULF – Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($1.94) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($1.70). The company had revenue of $44.77 million for the quarter, compared to the consensus estimate of $46.00 million. TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%.TeraWulf’s quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.05) earnings per share. Equities research analysts expect that TeraWulf Inc. will post -0.94 EPS for the current year.
About TeraWulf (Free Report)
TeraWulf, 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.
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Chief Executive Officer Paul B. Prager reported a sale of ~137,500 shares of TeraWulf Inc. (WULF -2.08%) on August 27,, according to a recent SEC Form 4 filing.
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Transaction summaryMetricValueTransaction value$2.3 millionShares sold (indirectly held)137,500Post-transaction shares (directly held)1,761,479Post-transaction shares (indirectly held)38,608,966Post-transaction value$665.7 millionTransaction value based on SEC Form 4 weighted average sale price ($17.06); post-transaction value based on Aug. 27, market close ($16.49).
Company OverviewMetricValueShare Price (as of Aug. 27 market close)$16.49Market Capitalization$8.2 billionRevenue (TTM)$165.2 millionNetLoss (TTM)-$2.0 billionCompany SnapshotTeraWulf Inc. operates as a specialized digital infrastructure company focused on Bitcoin mining and high-performance computing. Founded in 2021 and headquartered in Easton, Maryland, the company has scaled its operations. The company seeks to deploy capital-efficient mining operations with access to reliable, cost-effective energy.
TeraWulf Inc. develops and operates digital infrastructure facilities in the United States, with a primary focus on Bitcoin mining and high-performance computing workloads powered by clean, cost-effective, and reliable energy sources.The company generates revenue through the operation of Bitcoin mining facilities and the provision of high-performance computing infrastructure services, leveraging its proprietary energy-efficient technology platform.TeraWulf serves institutional investors, cryptocurrency market participants, and enterprise customers seeking scalable computing capacity, positioning itself as a provider of digital infrastructure solutions in the emerging blockchain and distributed computing markets.What this transaction means for investorsAlthough a key insider sold shares, it’s not a significant event. Hence, investors shouldn’t jump to conclusions about co-founder and CEO Prager’s recent share sales.
First, he sold the shares under his 10b5-1 plan. Companies set these up for key insiders so that they can sell their stock under prearranged terms, including timing, to avoid even the appearance of trading on material, non-public information.
Second, the key executive still holds a significant stake. Prager’s 40.4 million shares, held directly and indirectly via entities, such as a trust, have a value of about $665 million.
Investors should note that the stock has done well. Over the last year, through Aug. 28, TeraWulf’s stock gained 62.4%. That’s roughly triple the S&P 500 index’s 20.8% and the Nasdaq Composite’s 23.8% total returns.
Shareholders may have experienced volatile returns from this currently money-losing company. However, management has been trying to pivot the company to rely more on artificial intelligence companies, including inking a 20-year data center lease with Anthropic.
Source: SEC Form 4 filing for WULF | Filed: Aug. 28
Bitcoin briefly cracked $80,000 for the first time in months, sending crypto mining stocks surging well past the broader digital infrastructure pack, but not every miner is rallying for the same reason.
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Crypto mining stocks are climbing Tuesday after Bitcoin (CRYPTO:BTC) topped $80,000, reaching a more than three-month high, but then dipped back below that key level. The rally is broad, but individual movers tell a nuanced story.
MARA Holdings (NASDAQ:MARA | MARA Price Prediction) stock is up 7% to $11.93, TeraWulf (NASDAQ:WULF) stock is up 5% to $16.21, and IREN Limited (NASDAQ:IREN) stock is up 5% to $41.67. For context, the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up 2% to $28.48, well short of the individual miners’ moves.
Coming into the session, MARA was up 25% year to date through Monday’s close, TeraWulf was up 35%, and IREN was up 5%. Bitcoin has been the swing factor all year, and today’s push above $80,000 has restored the higher-beta trade after weeks of choppy action. The gap between TeraWulf’s and IREN’s year-to-date returns, despite identical 5% intraday prints, highlights the dispersion this rally creates.
Bitcoin Breakout Above $80,000 Is the Trigger Bitcoin’s move above $80,000, covered by Bloomberg and The Wall Street Journal attributed to a weak dollar, the debasement trade and ETF inflows, lifts every mining name because each holds BTC on the balance sheet or earns revenue tied to the coin’s price. Miner economics tighten fast on dips and expand quickly on rallies, generating outsized equity reactions.
On Monday, Morgan Stanley analyst Stephen Byrd said in a note that he expects powered-shell operators to sign a wave of data center contracts by October, as AI customers race to secure projects that can energize before the end of 2027. Also Monday, the Kentucky Public Service Commission approved a 482 MW power agreement for TeraWulf’s Justified data campus, with a 15-year initial term and a minimum 482 MW take-or-pay obligation during its first six years. Last Friday, Microsoft approved Horizon 1, the first of four data centers IREN Limited is developing under a five-year, $9.7 billion agreement running NVIDIA GB300 systems.
Contract Books Diverge From Today’s Leaderboard MARA Holdings stock leads today despite carrying Morgan Stanley’s Underweight rating and the thinnest AI data center contract book among the three. That’s a Bitcoin-beta bounce, not a contract-driven re-rating. Even with a digital-infrastructure pivot underway, MARA’s equity prices primarily off mining exposure and Bitcoin’s daily direction.
TeraWulf and IREN both carry signed capacity and named tenants that give their moves different meaning. TeraWulf has leased about 401 MW of critical IT capacity at Justified to Anthropic, and IREN holds a $3.65 billion loan package tied to the Microsoft contract plus a separate five-year $3.4 billion cloud agreement with NVIDIA. Long-duration lease revenue from credit-backed tenants is exactly the exposure Morgan Stanley’s powered-shell thesis targets.
The peer group extends beyond the three leaders. Cipher Mining, Riot Platforms, and Applied Digital sit in the same rotation basket, and Morgan Stanley kept Overweight ratings on Cipher Mining, TeraWulf and Riot Platforms, rates Applied Digital Equal-weight and MARA Holdings Underweight. The bank’s $62.50 TeraWulf target implied 300% upside based on August 21 closing prices explains why WULF stock trades with such sensitivity to sector news, and it’s the same buildout we mapped in a free report on seven AI infrastructure suppliers powering the data-center wave.
The Global X data center ETF’s 2% gain against the 5% to 7% jumps in individual miners marks today as a high-beta bounce rather than a broad repricing of digital infrastructure. The fund’s diversified exposure to data-center REITs and semiconductor names lacks the coin-price sensitivity pure-play miners carry.
What to Watch Now Investors can watch for whether Bitcoin holds above $80,000 through the afternoon, since miners’ moves are keyed directly to that level. Texas regulators plan to notify projects of provisional ERCOT Batch Zero classifications by August 31, with final determinations expected at a Public Utility Commission of Texas meeting on December 17, and Morgan Stanley flagged Cipher Mining and MARA Holdings as potential beneficiaries while Riot Platforms sites sit outside the batch process.
Position sizing on this cohort should stay modest. These names carry heavy Bitcoin sensitivity plus construction execution risk, and MARA Holdings’ recent quarterly losses remind that mining economics swing hard when the coin does. TeraWulf and IREN carry construction and interconnection risk tied to multi-year data center buildouts.
Traders wanting the AI infrastructure angle with less coin-price volatility can consider the Global X data center ETF, though today shows the upside with higher-beta miners on a Bitcoin rally. The next catalysts likely to move this group are additional lease signings, Batch Zero disclosures on August 31, and Bitcoin’s ability to regain and hold $80,000.
Contact [email protected] for any questions or corrections.
A new ETF launched this August targets the companies renting AI compute directly to hyperscalers, offering something QQQ never could: pure-play exposure to contracted infrastructure backlogs worth hundreds of billions. The tradeoffs, however, are not small.
Invesco QQQ Trust (NASDAQ:QQQ) offers AI exposure through the customers rather than the suppliers. QQQ’s top holdings are the hyperscalers spending on AI infrastructure. That has worked, but QQQ dilutes the pure AI-compute rental trade through hundreds of billions in unrelated market cap. On August 6, 2026, Wall Street launched the first ETF built to isolate that trade: a “Neocloud” fund holding the companies renting AI compute back to those same hyperscalers. It landed the same day as a sister photonics and optics ETF, which carries a 0.65% management fee. The question is whether the trade justifies moving away from QQQ.
What Broad AI Funds Actually Give You QQQ’s AI thesis is second-order. Its megacap holdings sell chips, rent cloud services, and build models, but AI sits inside diversified businesses generating cash from unrelated products. Neocloud names are 100% AI infrastructure, contracted years out, and financed against those contracts. If hyperscaler capex doubles again, QQQ moves modestly. The Neocloud basket moves with it directly.
Names Inside the New ETF CoreWeave (NASDAQ:CRWV) is the anchor. Q2 revenue hit $2.6 billion, up 112% year over year, with a revenue backlog of $104 billion and more than $25 billion in net new customer commitments added early in Q3. Adjusted EBITDA margin was 59%. CEO Michael Intrator described it as an inflection point where “scale began to translate into expanding operating leverage.”
Nebius Group (NASDAQ:NBIS | NBIS Price Prediction) grew revenue 454% to $582 million, with a first-ever capacity auction clearing 15% above its highest prior Blackwell price. Applied Digital (NASDAQ:APLD) sits on $36 billion of total contracted lease value, with roughly 76% tied to investment-grade hyperscalers. TeraWulf (NASDAQ:WULF) signed a 20-year, roughly $19 billion lease with Anthropic for 401 megawatts at its Kentucky campus. IREN inked a five-year, $3.4 billion AI Cloud contract with NVIDIA tied to the eventual deployment of 600,000 GPUs. Lumentum is the optics arm: fiscal Q4 revenue jumped 109% to $1.01 billion, with non-GAAP operating margin at 36.6%.
Where This Basket Actually Wins Against QQQ This is concentration by design, and that is the whole point. QQQ gives you fractional exposure to companies where AI revenue is still buried inside much broader businesses. The neocloud basket, on the other hand, is contracted forward in a big way, with $104 billion at CoreWeave, roughly $37.5 billion at Nebius, and $33 billion at TeraWulf. Every additional dollar of hyperscaler capex, which Applied Digital’s Wes Cummins recently pegged at “nearly $700 billion,” up from around $400 billion, flows straight into the companies that have the power, the sites, and the GPU allocations to absorb it. QQQ catches a sliver of that action. The Neocloud ETF captures the bulk of it.
Tradeoffs Worth Naming In the last week alone, CoreWeave fell 18.63%, and Nebius fell 21.55%. CoreWeave’s Q2 interest expense reached $640 million, versus $267 million a year earlier. TeraWulf posted a $939.92 million net loss driven mostly by non-cash warrant marks. IREN took a $140.4 million non-cash impairment, retiring mining hardware. Customer concentration is real: Nebius disclosed three customers representing 24%, 21%, and 14% of revenue, and TeraWulf leans on Anthropic and Google’s $600 million credit backstop for Fluidstack. None of these names pay a dividend.
The idea is to ride the AI infrastructure wave with guardrails. We wrote a free guide on seven suppliers powering the buildout, from power to cooling to networking, here: 7 Stocks Powering the AI Boom (That Aren’t Chipmakers).
How to Think About the Swap These two funds are structurally very different. QQQ is a broad, diversified core holding you can build a portfolio around. The Neocloud ETF, by contrast, is a satellite that hones in on one specific theme, and it does it through structurally levered, cash-flow-negative businesses. A partial reallocation could make sense here. If you size the Neocloud fund as a modest slice of your AI exposure rather than swapping it in for QQQ entirely, you get that pure-play upside without betting your whole portfolio on capital markets staying open for six companies at the same time. One word of caution, though. If you are working in a taxable account, cost basis matters a lot before you start rotating out of appreciated QQQ shares.
Signals That Would Change the Call Whether this actually works comes down to just two things. First, you have to watch what the hyperscalers are planning to spend on capex. Second, capital markets need to stay open and cooperative. CoreWeave alone raised roughly $18 billion in the second quarter, which gives you a sense of the scale we are talking about. If either of those two pillars weakens, the neocloud ETF will take a much bigger hit than QQQ. But if both hold up, the concentration works in your favor. The smart move is a measured position, sized so that even a total loss would not derail your broader plan, and then weigh that against the diversified exposure a broad tech ETF already gives you.
Contact [email protected] for any questions or corrections.
Key Takeaways Historical technical data shows that QQQ is ready to rally.Bearish sentiment is at extreme levels. NVIDIA, an AI bellwether, smashed Wall Street expectations. Choppy summer trading is nothing new on Wall Street, so it’s no surprise to seasoned investors that it once again occurred in 2026. However, three strong signals are emerging that the bull market is set to begin its second half advance, including:
QQQ Bullish Open/Close Historical DataX user OddStats (@OddStats) just revealed an “odd stat” about the Nasdaq 100 Index ETF ((QQQ - Free Report) ). QQQ just registered its 8th consecutive session closing below where it opened. While this may sound like a market ready to continue a bearish downtrend, the historical data suggests otherwise. In fact, in such instances in the past, the one-month, six-month, and one-year forward returns were positive 100% of the time. Additionally, forward returns were much higher than the average returns. For instance, the median one-year forward return was a juicy 30.59%.
Image Source: @OddStats
AAII Sentiment Survey: A Contrarian IndicatorThe American Association of Individual Investors has conducted the AAII Sentiment Survey since 1987. The survey asks individual investors where they think the market is heading over the next six months and has done so since 1987. Bearish sentiment has now outweighed bullish sentiment for six consecutive weeks. The last time bearish sentiment outweighed bullish sentiment was in April, just before equities enjoyed a multi-week run.
Image Source: AAII
NVIDIA Crushes Wall Street ExpectationsNVIDIA ((NVDA - Free Report) ) is not only the largest company on the planet; it is also a bellwether for the most important and fastest-growing industry – artificial intelligence. Last night, NVIDIA smashed Wall Street estimates despite lofty expectations. Revenue of $96.2B beat Wall Street estimates of $91.9B while EPS of $2.22 beat estimates of $2.09. Meanwhile, NVIDIA announced that Neocloud partners are expected to scale from ~3GW to 8GW of installed capacity this year. CoreWeave ((CRWV - Free Report) ), Nebius Group ((NBIS - Free Report) ), TeraWulf ((WULF - Free Report) ), Cipher Digital (CIFR), and IREN ((IREN - Free Report) ) jumped on the news.
Bottom Line
Despite the seasonal summer volatility, underlying technical trends, sentiment metrics, and tech fundamentals continue to build a strong foundation for equities.
NVIDIA's blowout earnings sent shockwaves through a corner of the market that had nothing to do with chips, lifting two power-hungry capacity operators on a read-across trade that reveals exactly how leveraged the AI buildout has become.
TeraWulf (NASDAQ:WULF) stock is up 6% to $16.90 Thursday morning, while Applied Digital (NASDAQ:APLD) shares are climbing 5% to $28.12. Both names are riding a read-across from someone else’s earnings report.
That report came from NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), whose stock is up 7% to $224.38 following a blowout print delivered Wednesday afternoon. NVIDIA’s Q2 FY2027 results and forward guide have reignited the AI compute trade across capacity operators tied to hyperscaler and AI-lab demand.
Neither TeraWulf nor Applied Digital reported anything of their own today, and no company-specific catalyst has been verified for either name. A firmer crypto tape is a secondary contributor for these mining-heritage operators, but the primary mechanism is the NVIDIA read-across.
Read-Across From NVIDIA’s Blowout Print NVIDIA posted revenue of $96.2 billion, ahead of the $92.1 billion consensus, with net income of $59.7 billion, up 126% year over year. Data center revenue reached $89 billion, up 117%, the line item that most directly reflects the hyperscaler capex fueling AI capacity buildouts.
The forward number is what electrified the compute trade. NVIDIA’s Q3 guide sits at $108 billion, plus or minus 2%, which would mark NVIDIA’s first quarter above $100 billion in revenue and validates continued acceleration in AI data-center spending.
CFO Colette Kress guided to 70% revenue growth for fiscal 2028 and said the company remains supply constrained. That last phrase is what matters for TeraWulf and Applied Digital: the buildout is capacity-limited, so contracted power and hosting sites become scarcer, and more valuable.
High-Beta Proxies on a Buildout They Don’t Control TeraWulf and Applied Digital both convert power capacity into AI hosting contracts, which is why NVIDIA’s demand signal reaches them at all (we profiled seven of the picks-and-shovels suppliers behind this buildout, from power to cooling, in a free report you can grab here). They function as high-beta proxies on an infrastructure cycle they do not build, priced off the strength of hyperscaler and AI-lab commitments landing further up the stack.
Volatility around these names is also structurally elevated. TeraWulf stock carries a beta of 4.3, and Applied Digital stock carries a beta of 5.8, meaning any move in the underlying compute trade gets amplified before it reaches shareholders.
Peer name IREN Limited (NASDAQ:IREN) sits in the same read-across bucket as a contracted AI-compute landlord, carrying a signed NVIDIA cloud partnership that gives it its own hyperscaler-adjacent anchor.
Sector Fund Move Says This Is a Single-Name Bid The tell today is what isn’t running with them. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up 0.8% to $28.57, a fraction of what the high-beta capacity builders are doing this morning. That gap frames today’s flow as a targeted bid for operators with contracted power and hyperscaler-adjacent capacity, and the move is happening at the security level, with the sector basket telling us so.
Retail engagement supports the read. Reddit sentiment around NVIDIA scored 74 bullish at the Thursday 6 a.m. ET boundary, a sharp turn from a 38 bearish reading Wednesday morning before the print.
What to Watch Next Investors should keep their positions modest here given the beta involved. Intraday reversals in TeraWulf and Applied Digital can be violent, and sizing into strength on read-across trades is where discipline tends to pay off.
The next scheduled catalysts sit further out on the calendar. CB-4 phased delivery at TeraWulf’s Lake Mariner site and initial Polaris Forge 2 capacity milestones at Applied Digital are the next name-specific data points investors will price, and any incremental analyst notes touching AI infrastructure hosts post-NVIDIA could shape the next leg.
Contact [email protected] for any questions or corrections.
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A nearly $640 million writedown just sent IREN tumbling despite its AI Cloud business more than doubling, and the question now is whether today's selloff reflects a company in crisis or one eating a painful but necessary transition cost.
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The pivot from Bitcoin mining to AI cloud infrastructure got messier this morning as IREN, the sector’s most aggressive rebuild, wrote down its old business to make room for the new one. Investors focused on the size of the charge, even though IREN’s AI Cloud line more than doubled and 2026 capacity is essentially spoken for.
IREN Limited (NASDAQ:IREN) stock is down 6% to $38.22 following its fiscal 2026 report, capping a volatile stretch for a name that had rallied through much of August. Meanwhile, TeraWulf (NASDAQ:WULF) stock is down 1% to $16.30, easing in sympathy but holding the line, while Applied Digital (NASDAQ:APLD) stock is slipping 0.7% to $27.25 in the same session.
Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) shares are slipping 0.7% to $28.30 as the AI infrastructure basket digests IREN’s numbers, and SPDR S&P 500 ETF Trust (NYSEARCA:SPY) shares are climbing 0.1% to $771.97. Bitcoin (CRYPTO:BTC) is up 0.3% over the past 24 hours to $79,490, so today’s action traces to business-model math rather than crypto.
Impairment Lands on the Old Business IREN recorded a $638.8 million impairment tied largely to older mining equipment, the charge that pushed reported results deep into the red. The company posted a fiscal 2026 net loss of $702.6 million, against an $86.9 million profit a year earlier. Total revenue still rose 41.1% to $707 million, and adjusted EBITDA declined 8.9% to $245.7 million.
For the June quarter, IREN posted an adjusted loss of $0.41 per share against a consensus loss of $0.50, an earnings surprise of 18%. Quarterly revenue was $137.23 million, 13.5% above consensus, versus $187.29 million a year earlier. The writedown lands on hardware IREN is retiring, which management said will be effectively decommissioned by the end of December 2026.
IREN’s management framed the transition as the driver, describing the June-quarter loss as a non-cash charge on retiring hardware. IREN stated, “The quarter’s results continue to reflect the ongoing transition to AI cloud.” Adjusted EBITDA of $19.2 million in the June quarter came in well below the $59.5 million figure IREN posted in the March quarter.
AI Cloud Scales as Contracted ARR Reaches $4 Billion AI Cloud is driving growth. AI Cloud revenue climbed to $128.8 million from $16.4 million for the year, while Bitcoin mining revenue rose 19.3% to $578.2 million even as the mining fleet was being retired. IREN closed the year with $7.62 billion in cash, restricted cash and equivalents to fund the buildout.
Management said it has secured contracts targeting $4 billion of annualized revenue for capacity by year end, while flagging that ARR is not the same as recognized GAAP revenue. CEO Daniel Roberts stated, “Our 2026 capacity is largely sold out. This includes Horizon 1, the first of four leading-edge liquid cooled GPU deployments that we successfully delivered to Microsoft this month.” IREN’s Horizon 1 achieved NVIDIA Exemplar Cloud status on GB300 NVL72 at Childress for its hyperscale customer.
Peers Ease, Sector Barely Flinches TeraWulf is walking a similar path from mining to AI and HPC hosting, and its shares easing rather than breaking suggests the market is separating IREN’s transition costs from the peer thesis. Applied Digital stock is drifting lower alongside IREN as investors reassess the AI data center basket, though that move is modest. Bitcoin holding near $79,490 over the past 24 hours takes crypto out of the equation.
The DTCR ETF’s shallow decline reinforces that read. Data center REITs and semiconductor names inside DTCR are absorbing IREN’s writedown without pulling the broader basket lower. Today’s action reflects company-specific transition math.
The leading AI GPU supplier remains a shared thread across the group. IREN’s five-year $3.4 billion AI Cloud contract with NVIDIA from the March quarter still anchors the 2027 setup, and management said it is in late-stage discussions with new customers covering a significant portion of 2027 capacity (the power, cooling, and networking suppliers behind that same buildout are the focus of our free AI infrastructure report, here). That external validation is why peers like TeraWulf and Applied Digital can hold up even on an IREN miss day.
What to Watch Next Shareholders can watch for whether IREN closes the AI Cloud revenue-to-ARR gap over the December and March quarters, since management has said a significant amount of the December capacity is expected to come on late in the quarter. Traders may want to keep an eye on whether today’s 5% slide holds into the close, given the stock’s 19% gain over the past month heading into the report.
The bull case rides on Horizon deployments, key GPU-supplier and hyperscale customer milestones, and pricing running at around $25 million per megawatt in active discussions. The bear case is straightforward: IREN’s capex is heavy, transitions are lumpy, and impairments may not be finished. Investors should size their IREN positions modestly and use defined risk while the mining fleet finishes winding down.
Contact [email protected] for any questions or corrections.
TeraWulf (WULF) has strategically pivoted from Bitcoin mining to high-margin high-performance computing (HPC) leases, securing major contracts with Google and FluidStack. WULF's aggressive data center buildout, including Chesapeake and Muskie campuses, underpins a projected ramp to 2,900 MW cloud capacity by decade's end. I see significant upside for WULF, supported by a potential 10-12x forward price-to-revenue multiple and robust AI-driven demand trends.
A nine-figure writedown at one AI data center operator sent shockwaves through the entire sector Friday, and the stocks bleeding hardest have no bad news of their own to explain the damage.
AI data center pure plays are unwinding together Friday, with a fiscal 2026 impairment charge at IREN Limited (NASDAQ:IREN) dragging capex-heavy peers. The broadening move signals investors re-pricing the group’s transition costs across the cohort.
IREN stock is down 13% to $35.28 at midday, an acceleration from the 6% decline earlier in the morning. Meanwhile, the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is down 1% to $28.17, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.18% to $769.72, so a macro-level explanation doesn’t account for today’s action in IREN stock.
Similarly, Applied Digital (NASDAQ:APLD) stock is down 7% to $25.55, while TeraWulf (NASDAQ:WULF) stock is down 7% to $15.39. Core Scientific (NASDAQ:CORZ) stock is down 7% to $16.39, matching the peer move.
Impairment at IREN Kicks Off the Rerating IREN reported fiscal 2026 results after Thursday’s close, resetting how the market weighs its pivot from Bitcoin mining to AI compute. The company recorded a $638.8 million impairment tied largely to older mining equipment, producing a fiscal 2026 net loss of $702.6 million against an $86.9 million profit a year earlier.
The company’s total revenue rose 41.1% to $707 million, and AI Cloud revenue climbed to $128.8 million from $16.4 million. IREN closed the year with $7.62 billion in cash and equivalents, and management said its contracts target $4 billion of annualized revenue by year end.
Applied Digital, TeraWulf, and Core Scientific Follow the Selling Earlier this morning the peer group looked steady, with Applied Digital off less than 1% and TeraWulf off 1%. By midday that read no longer holds. The sympathy selling has hit the group with roughly identical severity, and none of the three has issued fresh company news today.
Applied Digital was up 12% year to date through Thursday’s close, and management said at its fiscal Q4 2026 call that all current construction projects are on time and on budget. The company reported $36 billion of total contracted long-term lease value across five campuses and placed $1.59 billion of 7% senior secured notes, which the CFO said was “225 basis points inside our first placement.” Trefis flagged Applied Digital’s 229% revenue growth over the trailing twelve months in an August 27 note.
TeraWulf was up 44% year to date through Thursday’s close, while Core Scientific was down 15% over the past month heading into today. TeraWulf’s 20-year lease with Anthropic at its Kentucky campus targets $19 billion of contracted revenue, and Core Scientific’s initial AMD agreement covers 530 megawatts with more than $14 billion of base contracted revenue. Retail discussion has flagged financing and dilution risk at Applied Digital along with the absence of management commentary today.
Pure Plays Sink, Data Center Fund Barely Moves The pure plays are down 7% to 12%, and the Global X Data Center & Digital Infrastructure ETF is down only 1%. The fund is a narrowly concentrated thematic product rather than a diversified fund, yet its data center REITs and semiconductor suppliers such as Equinix, Digital Realty Trust, and Micron Technology are absorbing today’s damage while the pure plays take the hit.
That gap signals the selling is concentrated in capital-intensive, capex-heavy operators, sparing broader data center exposure. Long-duration lease revenue and hyperscaler contracts still carry a premium, and the market is discounting the cost of getting there when a peer books a nine-figure writedown against decommissioned hardware (we profiled seven of the picks-and-shovels names behind this buildout, from power to cooling, in a free AI infrastructure report).
The valuation math adds fuel to the move. IREN carries a forward P/E ratio of 137x, while Applied Digital sits at a forward P/E ratio of 526x. High multiples on early-stage AI infrastructure revenue leave less cushion when a peer books a hardware writedown of this size.
What to Watch Traders can watch for stabilization across the pure plays into the afternoon, with IREN’s price action likely setting the tone for the group. Applied Digital’s next earnings report is expected around October 7, the next hard catalyst that could reset the cohort. Moves in DTCR versus the pure plays could show whether today’s separation between the fund and its capex-heavy constituents holds.
Investors reassessing their exposure should right-size their positions given the group’s beta and financing sensitivity. A cautious approach can pair a small pure-play position with broader infrastructure exposure through DTCR, which trims single-name capex risk while keeping the AI infrastructure theme intact. Aggressive traders may want to wait for confirmation that IREN has found a level before adding to APLD, WULF, or CORZ.
Contact [email protected] for any questions or corrections.
PSC order validates a responsible large-load development model that protects existing customers, assigns project-specific costs and risks to TeraWulf, and creates incremental value for utilities and communities | Source: TeraWulf Inc.
EASTON, Md., Aug. 24, 2026 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a vertically integrated owner, developer and operator of large-scale digital infrastructure, today announced that the Kentucky Public Service Commission (“PSC”) has approved the Retail Electric Service Agreement (“RESA”) supporting up to 482 megawatts (“MW”) of electric service for TeraWulf’s Justified Data Campus in Hancock County, Kentucky.
The approval represents an important milestone for Justified and, in TeraWulf’s view, validates a strong model for responsible large-scale data center development: securing substantial power capacity while ensuring that project-specific costs and risks are borne by the large-load customer, protecting existing ratepayers and creating incremental value for utilities and local communities.
In its August 21, 2026 order, the Commission concluded:
“After consideration of the entire record, the Commission finds that the proposed RESA contains adequate protections for existing customers, appropriately allocates financial and operational risks, establishes rates that are fair, just and reasonable, and provides for adequate and reliable service.”
Under the approved structure, TeraWulf is responsible for the market, transmission, delivery and other costs attributable to serving its load, together with customer-specific infrastructure costs and substantial credit-support obligations. The agreement also includes negotiated demand adders and customer charges that provide incremental contributions to Big Rivers Electric Corporation (“Big Rivers”) and Kenergy Corp. (“Kenergy”).
The Commission specifically found that the direct pass-through of market and delivery costs ensures that TeraWulf bears the costs attributable to its service and that the customer-specific terms do not provide TeraWulf an unreasonable preference or advantage or subject other customers to an unreasonable prejudice or disadvantage.
“Power is the gating factor for AI infrastructure, but how you bring that power to market matters,” said Paul Prager, Chief Executive Officer of TeraWulf. “At Justified, we’re taking a former industrial site with existing transmission infrastructure and putting it back to productive use at scale. We’re paying the costs associated with our load, protecting existing ratepayers, and making a significant long-term investment in Kentucky. We believe that’s the right model for responsible data center development, and the Commission’s decision is an important validation of that approach.”
The Justified Data Campus is being developed at the former Century Aluminum Hawesville facility, where approximately 482 MW of existing transmission capability remains available following the closure of the aluminum smelter. Reusing existing industrial infrastructure allows TeraWulf to pair large-scale power availability with redevelopment of a previously industrialized site.
The PSC also recognized the economic benefits associated with the project, including anticipated capital investment, employment and expansion of the local tax base. Based on current expected development costs of approximately $10 million to $12 million per MW of critical IT load, TeraWulf currently estimates approximately $4.0 billion to $4.5 billion of investment in site development and the initial data halls, exclusive of additional investment by customers in computing equipment and related infrastructure.
The Commission stated that “the proposed reuse of an existing industrial site, anticipated capital investment, employment, and additional tax base provide further support for the public-interest benefits asserted in the record.”
The Commission further found that the RESA’s rate structure, credit protections, cost allocation and operational provisions provide adequate safeguards for system reliability and existing utility customers.
The PSC’s approval authorizes Big Rivers and Kenergy to implement the RESA in accordance with its terms.
A Scalable Framework for Responsible Digital Infrastructure
TeraWulf believes the Justified structure demonstrates several principles that can support responsible development of large-scale digital infrastructure:
Leverage existing infrastructure: Justified repurposes an established industrial site with substantial existing transmission capacity. Protect existing customers: Project-specific market, delivery and infrastructure costs are borne by TeraWulf rather than shifted to other utility customers. Align risk with the large-load customer: TeraWulf assumes market-price, load and customer-specific infrastructure risks and maintains significant credit support. Create incremental utility value: Negotiated demand charges and customer fees provide contributions to Big Rivers and Kenergy beyond reimbursement of the direct costs of serving TeraWulf. Drive durable local investment: The project is expected to bring billions of dollars of investment, new jobs and an expanded tax base to Hancock County and the Commonwealth of Kentucky.
TeraWulf believes this combination of power availability, contractual risk allocation, existing infrastructure reuse and local economic benefits can serve as a replicable framework for meeting rapidly growing demand for AI and high-performance computing infrastructure.
About TeraWulf
TeraWulf develops, owns and operates large-scale, power-backed digital infrastructure in the United States, purpose-built for high-performance computing and artificial intelligence workloads. The Company combines long-term control of land, power and interconnection infrastructure with deep in-house expertise in energy markets, infrastructure development and data center operations. TeraWulf operates the Lake Mariner Data Campus in New York and is developing and pursuing additional large-scale campuses in Kentucky, New York and Maryland. The Company also operates existing bitcoin-mining infrastructure at Lake Mariner, portions of which are being repurposed to support contracted HPC development.
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 its data center campuses and future strategic growth initiatives in a timely manner or within anticipated cost estimates; (3) operational risks associated with its data centers and TeraWulf’s 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.
Deutsche Bank AG acquired a new position in shares of TeraWulf Inc. (NASDAQ:WULF – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 324,328 shares of the company’s stock, valued at approximately $8,011,000. Deutsche Bank AG owned 0.07% of TeraWulf as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of TeraWulf by 37.4% in the 4th quarter. Vanguard Group Inc. now owns 33,643,009 shares of the company’s stock valued at $386,558,000 after purchasing an additional 9,162,958 shares during the period. Engle Capital Management L.P. grew its stake in TeraWulf by 574.3% during the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company’s stock worth $42,570,000 after purchasing an additional 2,512,600 shares during the period. Oppenheimer & Co. Inc. grew its stake in TeraWulf by 45.1% during the fourth quarter. Oppenheimer & Co. Inc. now owns 140,101 shares of the company’s stock worth $1,610,000 after purchasing an additional 43,574 shares during the period. Pictet Asset Management Holding SA grew its stake in TeraWulf by 178.8% during the fourth quarter. Pictet Asset Management Holding SA now owns 151,005 shares of the company’s stock worth $1,735,000 after purchasing an additional 96,843 shares during the period. Finally, Jennison Associates LLC bought a new stake in TeraWulf in the first quarter worth approximately $53,418,000. Institutional investors and hedge funds own 62.49% of the company’s stock.
TeraWulf Price Performance WULF stock opened at $15.64 on Monday. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 27.25. The stock’s 50 day moving average is $20.76 and its 200-day moving average is $19.67. TeraWulf Inc. has a twelve month low of $8.60 and a twelve month high of $29.84. The firm has a market capitalization of $7.80 billion, a PE ratio of -3.58 and a beta of 3.76.
TeraWulf (NASDAQ:WULF – Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($1.94) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.24) by ($1.70). TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%.The firm had revenue of $44.77 million for the quarter, compared to analysts’ expectations of $46.00 million. During the same period in the prior year, the firm earned ($0.05) earnings per share. TeraWulf’s revenue was down 6.0% compared to the same quarter last year. Sell-side analysts expect that TeraWulf Inc. will post -0.94 EPS for the current fiscal year. Insider Buying and Selling at TeraWulf In related news, Director Michael C. Bucella purchased 3,023 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were bought at an average cost of $16.54 per share, with a total value of $50,000.42. Following the acquisition, the director owned 341,844 shares of the company’s stock, valued at $5,654,099.76. This represents a 0.89% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Paul B. Prager sold 166,650 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $24.43, for a total transaction of $4,071,259.50. Following the transaction, the chief executive officer directly owned 4,249,202 shares of the company’s stock, valued at $103,808,004.86. This represents a 3.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.90% of the stock is currently owned by insiders.
Analyst Upgrades and Downgrades Several brokerages have issued reports on WULF. Bank of America initiated coverage on TeraWulf in a research note on Monday, June 15th. They issued a “buy” rating and a $34.00 price target on the stock. Compass Point set a $40.00 target price on shares of TeraWulf in a research report on Monday, July 6th. Citigroup started coverage on shares of TeraWulf in a research note on Monday, June 29th. They set a “buy” rating and a $36.00 target price on the stock. Oppenheimer restated an “outperform” rating and issued a $35.00 price target on shares of TeraWulf in a report on Wednesday, May 27th. Finally, Sanford C. Bernstein assumed coverage on shares of TeraWulf in a research note on Wednesday, June 3rd. They issued an “outperform” rating and a $46.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $34.21.
Get Our Latest Analysis on WULF
About TeraWulf (Free Report)
TeraWulf, 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.
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Applied Digital (APLD -5.03%) and TeraWulf (WULF -4.92%) are two of the top AI stocks riding the data center wave. Both neocloud companies develop and operate facilities that serve hyperscalers, but their stock returns have been a little different this year.
TeraWulf is up by 36%, while Applied Digital has gained just 11%. Is that gap just a fluke, or is it a sign of things to come? Here's what investors should consider.
Image source: Getty Images
Applied Digital has the advantage with gigawatts Gigawatts are the name of the game when it comes to analyzing neocloud and colocation providers that offer IT capacity to hyperscalers. The more gigawatts a company has, the more revenue it can make.
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Applied Digital has secured 1.4 gigawatts of contracted critical IT load, which comes to roughly $36 billion in total contracted lease revenue. Most of these contracts have 15-year terms, including two deals for 300 megawatts at the company's Delta Forge 1 and Polaris Forge 3 sites.
TeraWulf only has 839 megawatts of leased capacity. Most of that came from a 20-year deal with Anthropic for $19 billion that covers 401 megawatts.
Neither of these companies is able to deliver all of this capacity yet. TeraWulf told investors that revenue from the Anthropic deal will start to materialize in the second half of 2027, while revenue generation across all 401 megawatts is expected by early 2028.
Applied Digital also has the bigger pipeline Not only does Applied Digital have more contracted power, but it also has the bigger pipeline. Secured deals make it easier for neocloud and colocation providers to secure financing to build out their infrastructure, while pipelines increase the number of gigawatts, which can result in more lucrative contracts in the future. Further price improvements seem likely as demand for compute capacity continues to expand rapidly.
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Applied Digital has an active pipeline of roughly 3 gigawatts, while TeraWulf's is about 2.1 gigawatts. These figures do not include power or land for which they are still in the early stages of discussion and due diligence, so the size of the gap between them could change quickly. Earlier in the year, TeraWulf announced the acquisition of a Kentucky site that exceeded 1 gigawatt. Another deal like that for Terawulf that could completely close the gap, while a similar deal for Applied Digital would meaningfully expand it.
All of those secured gigawatts can only be transformed into revenue-producing assets if the neoclouds can secure lease deals for their services. That part isn't a problem since demand for compute is so high, but both companies have to ensure they are getting good terms for their capacity.
TeraWulf is aiming to boost its contracted capacity by 250 megawatts to 500 megawatts each year. That would give it between 1 gigawatt and 2 gigawatts of additional contracted power by 2030, which would put its total between 2 gigawatts and 3 gigawatts. Applied Digital has outlined a path to 3 gigawatts of contracted power by 2031, assuming it can lease at least 500 megawatts per year.
The companies have similar market caps Applied Digital has a larger gigawatt pipeline and more capacity under contract, so one might be surprised that their market caps are very similar. Applied Digital's is $7.8 billion, compared to Terawulf's $7.7 billion.
Applied Digital's valuation lead should be larger, especially since its revenue and net income are also higher than Terawulf's. It also has a higher revenue growth rate than Terawulf as more contract revenue gets recognized.
Both companies are at the center of the AI boom and have long-term deals fueling their growth and access to competitive financing. However, Applied Digital has more going for it right now. More contracted power, a deeper gigawatt pipeline, higher revenue, and lower losses highlight the bullish thesis when comparing these two growth stocks.
TeraWulf could have been the better pick if their valuations were miles apart, but the fact that Applied Digital's market cap is barely more than TeraWulf's makes Applied Digital the better pick.
Friday’s selling in AI-pivoting Bitcoin (CRYPTO:BTC) miners tracks their 2026 gains almost perfectly, a signature of profit-taking and position unwinding rather than a reassessment of any company’s contracts or economics. Hut 8 (NASDAQ:HUT) stock is down 11% to $78.54 in Friday morning trading, the group’s worst decliner despite carrying the largest signed AI data center backlog among former miners. There’s no same-day announcement behind the move.
Meanwhile, TeraWulf (NASDAQ:WULF) stock is sliding 5% to $15.58, a more moderate drop mirroring its smaller year-to-date advance. Also lower, IREN (NASDAQ:IREN) stock is falling 3% to $41.20, the mildest decline and consistent with its slimmer 2026 gain.
At the same time, the Global X Data Center and Digital Infrastructure ETF (NASDAQ:DTCR) is down 0.6% to $28.30, barely moving relative to the miners inside the broader theme. That gap tells the story: broad demand for AI data center capacity isn’t what traders are selling this morning.
Selling Tracks the Year’s Biggest Winners Rank the three miners by 2026 performance and by Friday’s loss and the order is identical. Hut 8 stock is up 93% year to date through Thursday’s close and down the most today. TeraWulf stock is up 43% year to date through Thursday’s close, and its Friday drop is smaller. IREN stock is up 13% year to date through Thursday’s close, and its decline is the shallowest.
That proportionality signals profit-taking, not a re-underwriting of long-duration contracts or unit economics. What’s being unwound is the specific bet that former Bitcoin miners can convert scarce power and shell space into AI tenancy, a bet that repriced violently upward earlier this year.
Full-chain options positioning still leans bullish across the group, with Hut 8’s put-call ratio at 0.45, TeraWulf’s at 0.37, and IREN’s at 0.34. Traders sitting on sizable call exposure have every incentive to trim as the year’s gains compress.
Beacon Point Backlog Sits Behind the Story Hut 8’s backlog isn’t Friday news, but it frames why the stock has run so far and why it’s giving back the most today. On May 6, Hut 8 commercialized the first phase of its 1 gigawatt Beacon Point AI data center campus in Texas with a 15-year, 352 megawatt IT lease carrying a base-term contract value of $9.8 billion. By July 20, the company had fully commercialized the campus with a second 352 megawatt IT lease, bringing campus-level base-term contract value to $19.6 billion.
Both milestones predate this session. During the August 4 call, Hut 8 CEO Asher Genoot noted that total contracted AI data center capacity across Beacon Point and River Bend is roughly 949 megawatts, representing approximately $26.6 billion of expected aggregate base-term contract value. Initial data hall delivery is targeted for Q2 2027 at River Bend and Q3 2027 at Beacon Point, so none of that contracted revenue has hit the income statement yet.
Data Center Fund Barely Budges The Global X ETF’s muted move is the cleanest evidence that broader AI infrastructure demand isn’t being repriced today. It has advanced up 35% year to date through Thursday’s close year to date through Thursday’s close, so it has participated in the theme, yet Friday’s drop is tiny relative to the miners. Its portfolio leans toward established data center REITs and communications tower operators, with the top three positions each accounting for more than 9% of net assets.
DTCR shares are holding up far better than the miners inside the theme. That divergence points to a rotation out of the highest-beta corner of the AI infrastructure trade rather than a sector-wide reassessment of demand (we profiled seven suppliers powering the buildout, from power to cooling, in a free report).
What to Watch Next The central question for Hut 8 shareholders is whether Beacon Point’s contracted revenue begins converting into reported results, since the backlog is signed and dated but the cash hasn’t yet shown up in the numbers. Reported Q2 2026 revenue of $74.93 million still reflects mostly compute activity, not the AI lease stream anchoring the equity story.
Investors sizing exposure to this group may want to keep positions moderate given how proportional Friday’s selling is to prior gains. Hut 8 stock dropping 11% against a 0.6% move in DTCR shares underscores the single-stock risk in this pocket. A cautious weighting, paired with attention to the next Hut 8 quarterly report for the first Beacon Point revenue signals, remains the sensible stance.
Contact [email protected] for any questions or corrections.
TeraWulf is upgraded from Hold to Buy as the stock drops to $15, making valuation more attractive despite ongoing risks. WULF has rapidly shifted from bitcoin mining to HPC leasing, now generating over 70% of revenue from AI infrastructure contracts. Contracted revenue has doubled to $27 billion, with 839 MW leased and a 2.1 GW pipeline, but significant capex and dilution risks remain.
Buy CRWV. The sell-off is driven by bond-yield/AI-bubble fear, but the company just showed real momentum: revenue +112% to $2.6B and adjusted EBITDA +$1.5B. If rates stabilize even slightly, high-growth AI infrastructure names should re-rate quickly because expectations were already reset downward. Key risk: a funding squeeze—if yields stay high and capital markets tighten, CRWV can’t finance GPU/data-center buildout and growth stalls despite strong recent results.
Key Risk: Capital markets tighten and CRWV can’t raise enough money at acceptable rates, forcing slower buildout.
Nebius (NBIS)
Sell NBIS. The stock is down hard, but the thesis is fragile: it’s still a high-burn AI infrastructure play that must keep buying expensive compute while investors fear an AI bubble. Even with big revenue growth (+454% to $582M), the market is punishing any sign that margins and cash burn won’t improve fast enough. Key risk: AI demand stays strong and funding remains available, letting NBIS convert revenue growth into durable profitability and the bubble fears fade.
Key Risk: NBIS proves it can turn rapid revenue growth into strong margins/cash flow, and bubble fears fade.
Top neocloud stocks are falling this week, erasing some of the gains they made last week when many of them published strong financial results. Nebius stock plunged to $241 from this month’s high of $280. Similarly, CoreWeave and TeraWulf tumbled to $93 and $15.62, respectively.
The ongoing WULF, CRWV, and NBIS stocks crash has happened because of the ongoing technology sell-off amid the rising bond yields. Nvidia, the posterchild of the AI boom, dropped to $219 from this week’s high of $227. Other top names like AMD, Oracle, and Broadcom also plunged.
The main reason behind the sell-off was the rising US bond yields, with the 30-year rising to its highest level in over two decades. Investors are concerned about the state of the US economy as public debt surges and as the US-Iran war moves to a stalemate.
At the same time, investors are concerned about a potential AI bubble. Michael Burry, who accurately predicted the Global Financial Crisis, has called the bubble and shorted some of the top companies in the industry, including Nebius.
He is not alone as TeraWulf, Nebius, and CoreWeave have short interests of 23%, 25%, and 13%, respectively. In a report on Tuesday, the European Central Bank warned that a market correction was possible amid the AI boom.
Still, some analysts warn that the fears of an AI bubble were overblow, noting that the top companies in the industry were seeing strong growth. For example, Anthropic made over $11 billion in the second quarter, with its annualized revenue run rate reaching $65 billion.
OpenAI’s revenue rose by 18% in the second quarter to $6.7 billion. While this growth disappointed its investors, the management noted that the revenue is accelerating in the third quarter.
Top neocloud companies published strong financial results. TeraWulf’s revenue dropped to $71 million in the second quarter from $47 million in the same period last year.
This retreat was because of the ongoing Bitcoin price retreat and as the company continues to pivot towards AI data centers. Its AI business is doing well as evidenced by its 20-year deal with Anthropic worth nearly $19 billion. The deal will be extended to $33 billion if it extends it by five years.
CoreWeave also released strong numbers, with its revenue jumping by 112% to $2.6 billion and its adjusted EBITDA growing to $1.5 billion. Nebius said that its quarterly revenue jumped 454% to $582 million.
Analysts expect revenues of the three companies to accelerate. CoreWeave is expected to make $12.8 billion this year and $26 billion next year. Nebius, on the other hand, is expected to make $3.4 billion and $11.9 billion in the next two respective years. TeraWulf’s revenue will jump to $270 million and $905 million in this period.
The challenge, however, is that the cost of doing business is still elevated, with the prices of GPUs, memory, servers, and optical equipment soaring. As a result, they will need to raise substantial sums of money through debt and equity to fund this growth.
TeraWulf Inc. (NASDAQ:WULF) shares are trading lower Tuesday as AI cloud services stocks broadly decline, with rising inflation fears and surging bond yields souring investor appetite for high-growth companies that depend heavily on borrowed money to fund customer-driven capital spending.
TeraWulf shares are sliding. Why is WULF stock dropping? Rising Oil Prices and Bond Yields Squeeze Growth StocksOil prices spiked overnight after the Trump administration let a temporary ceasefire with Iran expire instead of extending it, prompting Tehran to threaten a more aggressive military response. Traders took that as a sign that shipping through the Strait of Hormuz, a critical passage for global oil, could face fresh disruption, feeding worries that energy-driven inflation could reaccelerate.
That matters for stocks like TeraWulf because of how the pieces connect. When energy prices rise, inflation tends to run hotter, which makes it harder for the Federal Reserve to justify cutting interest rates. Bond markets picked up on that risk almost immediately Tuesday, pushing the 10-year Treasury yield up to 4.74% and the two-year up to 4.19%.
Higher bond yields hit AI infrastructure stocks especially hard for two reasons. First, companies like TeraWulf are valued largely on profits investors expect years from now, and rising yields make those future profits worth less in today’s dollars, since investors can now earn more just by holding bonds instead.
Second, much of the sector’s growth is tied to customer capital spending funded through borrowing, so when borrowing costs climb the way they have this week, that spending becomes more expensive to finance, which can slow down the very demand these companies are counting on to grow.
When borrowing costs climb the way they have this week, that capital spending gets more expensive to finance, which can slow down the very demand these companies are counting on to grow.
TeraWulf’s Chart Shows a Stock Still Fighting its DowntrendTeraWulf shares are trading well below the key trend lines longer-term investors watch, sitting about 10.7% under the 20-day average of $17.56, roughly 26.5% under the 50-day average of $21.32, and around 11.6% under the 200-day average of $17.74. When a stock sits this far below its major averages, rallies tend to face more resistance than usual, since there’s a lot of overhead supply from investors looking to sell into any bounce.
The 20-day average sitting below the 50-day average points to weaker momentum over the past couple of months, but the 50-day average still holding above the 200-day average suggests the stock’s longer-term uptrend has been dented rather than fully broken. In plain terms, the bigger trend isn’t dead, but the medium-term picture still needs repair.
The MACD, which tracks whether buying or selling pressure is speeding up or slowing down, has crossed above its own signal line and is now reading positive territory on its histogram. Read together, that combination usually points to a fading downswing rather than confirmation that a new uptrend has actually taken hold.
Two price levels stand out for traders watching what comes next. On the upside, the $17.50 area is the one to watch, since it overlaps with both the 20-day and 200-day averages and could act as a ceiling if the stock tries to push higher. To the downside, $14.50 is the zone most likely to draw buyers back in if selling picks up again.
Zooming out, TeraWulf peaked in June, which also marked its 52-week high, before setting a swing low in July, meaning the stock’s recent move looks more like an early attempt to stabilize after that peak than a genuine return to an uptrend.
WULF Shares Are SlippingWULF Price Action: TeraWulf shares were down 11.42% at $15.60 at the time of publication on Tuesday, according to Benzinga Pro.
Shares of Bitcoin (CRYPTO:BTC) miners pivoting to AI infrastructure are moving lower together Tuesday morning, with Cipher Mining (NASDAQ:CIFR) stock down 9% to $16.77 and TeraWulf (NASDAQ:WULF) shares down 7% to $16.45. Rising Treasury yields sit at the center of the move.
The 10-year yield is trading near the upper end of its 52-week range, pressuring long-duration cash flow valuations across a group financing multi-year data center construction against contracted revenue arriving later. HIVE Digital Technologies (NASDAQ:HIVE) shares are down 7% to $2.87, giving back most of Monday’s surge. MARA Holdings stock is down 5% to $9.24, and Riot Platforms shares are down 4% to $19.23.
Rising Yields Reprice the AI Miner Trade The 10-year Treasury yield is 4.7%, near the top of its 52-week range of 3.9% to 4.7%. Every name in this cohort is spending heavily now against revenue arriving in 2027 and 2028, and higher rates raise both borrowing costs and the discount rate applied to future cash flows.
The Nasdaq is down more than 1% and the Philadelphia Semiconductor Index is down more than 5%, so AI infrastructure exposure is under pressure across the board. Each miner in this group retains Bitcoin mining operations and treasury exposure while building HPC capacity for AI tenants, making long-term rates a unified driver (we profiled seven non-chipmaker suppliers powering the same buildout in a free AI infrastructure report).
Cipher Mining Takes the Hardest Hit Cipher Mining stock is absorbing extra pressure beyond the macro, with major sell-side firms adjusting their views on the heavy AI infrastructure pivot. As a capital-intensive Bitcoin miner building industrial-scale high-performance computing data centers for hyperscale tenants, Cipher occupies a concentrated corner of the group with stock up 25% year to date through Monday’s close, so Tuesday’s decline arrives from a level that had absorbed sizable gains earlier in the year.
TeraWulf operates Lake Mariner in New York with 102 MW of revenue-generating critical IT capacity and 336 MW under construction and controls a pipeline of roughly 2.1 GW across five sites with 839 MW of contracted capacity under long-term leases with Anthropic and Core42. The stock was up 53% year to date through Monday’s close, while Riot Platforms has secured 241 MW of contracted critical IT capacity at Rockdale representing $9.8 billion in long-term contracted revenue, with a Corsicana campus under a non-binding letter of intent for up to 1 GW and its shares up 58% year to date through Monday’s close.
TeraWulf, Riot, MARA, and HIVE Follow MARA Holdings operates 19 data centers across four continents, holds a bitcoin treasury of 35,577 BTC and recently secured rights to a 2 GW site in Texas as part of a targeted powered land portfolio of up to 4.8 GW. The stock was up 8% year to date through Monday’s close.
HIVE Digital Technologies surged Monday on a five-year, $350 million GPU cloud services agreement through its BUZZ HPC subsidiary expected to generate $70 million in annualized revenue, with $185 million in capital expenditures and a $35 million upfront customer deposit. That deal offered no protection once yields moved, and its shares were up 19% year to date through Monday’s close.
The Sector ETF Confirms Group-Wide Selling The Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) is down 6% to $47.32, sitting in the middle of individual name declines. That placement signals group-wide selling rather than isolated weakness, and WGMI is a narrow thematic fund concentrated in Bitcoin miners, carrying meaningful concentration risk.
The fund was up 31% year to date through Monday’s close.
What to Watch The bull case is that Cipher Mining, TeraWulf, Riot, MARA, and HIVE hold contracted revenue backlogs, controlled scarce power capacity, and long-duration leases with creditworthy AI customers, none of which changed Tuesday. The bear case is that these are loss-making businesses in heavy investment phases where higher rates directly raise capital costs, and Cipher Mining specifically is absorbing analyst reductions.
Given the volatility of this cohort and low absolute share prices of some names, position sizing should stay moderate. Traders could look for signs that the 10-year yield breaks above its 52-week high. Shareholders may want to keep an eye on whether their exposure can absorb further rate volatility before 2027 and 2028 lease deliveries begin producing cash flow.
Contact [email protected] for any questions or corrections.
The 20Y Anthropic deal confirms the durability of AI compute demand, while lending credence to WULF's build-first-and-lease-later strategy. The acquisition of Morgantown Generating Station underscores their strategic positioning as a power-centric digital infrastructure provider monetizing the AI super cycle. The $27B backlog underpins WULF's near-term cash flow/balance sheet/bottom-line headwinds, as they ramp up their aggressive capex plans.
WULF is scaling HPC leasing with 102 MW operating, a $19 billion Anthropic deal and $1.45 billion liquidity as construction costs pressure near-term profits.
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TeraWulf (NASDAQ:WULF) stock is leading a group of Bitcoin (CRYPTO:BTC) miner-turned-AI-infrastructure companies in 2026, with shares up 40.82% year to date. Applied Digital (NASDAQ:APLD) stock is up 18.52%, IREN Limited (NASDAQ:IREN) stock is up 2.57%, and Core Scientific (NASDAQ:CORZ) stock is up 33.52%, putting TeraWulf ahead of all three peers.
The broader backdrop has also been favorable, with the Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) up 31.78% year to date. That suggests TeraWulf stock isn’t simply benefiting from a rising digital-infrastructure tide, since its gain has exceeded the ETF’s performance.
TeraWulf’s Anthropic Deal Is a Major Catalyst The biggest recent driver for TeraWulf has been its 20-year lease with Anthropic at the Justified Data campus in Kentucky. The agreement covers approximately 401 megawatts of critical IT load and is expected to generate roughly $19 billion of contracted lease revenue over its initial term, with initial capacity expected online in the second half of 2027 and the full campus ramping by early 2028.
TeraWulf also agreed to sell its 50.1% interest in the Abernathy Joint Venture to a Fluidstack-led investor group, monetizing an approximately $450 million investment at a premium. That transaction could give TeraWulf more capital to deploy into wholly owned AI infrastructure, while the Anthropic lease provides investors with another long-duration contracted revenue stream.
Wall Street Sees More Upside for WULF Needham raised its TeraWulf stock price target to $33 from $28 in July while maintaining a Buy rating, citing the attractiveness of the Anthropic lease and the continued strength of AI infrastructure demand. Needham’s updated estimates also incorporated the removal of the Abernathy joint venture and the addition of the Justified Data lease.
The bullish case rests on TeraWulf converting its power and land portfolio into long-term AI infrastructure contracts, while its earlier Fluidstack arrangements provide another piece of contracted HPC (high-performance computing) capacity. TeraWulf’s Q1 results already showed the transition taking shape, with $21 million of HPC lease revenue accounting for more than half of its $34 million of total revenue.
Peers Have Catalysts, Too Applied Digital has continued building out its AI data center portfolio, including additional capacity at its North Dakota campus, while IREN has been expanding its AI Cloud business. IREN recently announced $2.8 billion of new customer contracts and raised its year-end AI Cloud annualized run-rate revenue target to more than $4 billion, with roughly 85% of that target under contract.
Core Scientific has arguably produced one of the more important recent peer catalysts after announcing an agreement with Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) for up to 2.5 gigawatts of data center capacity. Core Scientific’s Q2 results also showed colocation revenue of $136.7 million, while billing capacity reached 437 megawatts by mid-July, highlighting how quickly the business is shifting toward contracted AI infrastructure.
What to Watch Now TeraWulf stock’s lead in 2026 so far suggests that investors are placing a premium on its combination of contracted demand, power availability and long-term customer relationships. The bear case is that TeraWulf still has to execute expensive, complex construction projects, and much of the largest revenue opportunity from Anthropic won’t begin until future capacity is delivered.
The comparison with APLD stock, IREN stock and CORZ stock also shows that investors have several ways to play the same AI infrastructure theme. TeraWulf stock could remain a strong performer if management executes on its contracted buildout, but the stock’s substantial gain already reflects considerable optimism.
Investors considering TeraWulf stock should keep their position sizes moderate given the company’s capital requirements, execution risks and history of volatility. The DTCR ETF could offer a more diversified way to participate in the data-center buildout, while investors who choose individual names may want to watch for whether TeraWulf continues converting its development pipeline into contracted, revenue-producing capacity.
Contact [email protected] for any questions or corrections.
Texas Power Play: Hut 8 Sparks a $9.8B AI Infrastructure DealTeraWulf NASDAQ: WULF said its second-quarter results reflected growing high-performance computing, or HPC, lease revenue as additional capacity came online at its Lake Mariner campus, alongside a broader expansion strategy that includes a major Anthropic lease in Kentucky, the acquisition of the Muskie Data Campus and a planned sale of its interest in the Abernathy joint venture.
Revenue totaled $44.8 million in the second quarter, up from $34.0 million in the first quarter. HPC lease revenue rose 52% sequentially to $31.9 million and accounted for about 71% of total revenue, according to Chief Financial Officer Patrick Fleury.
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IREN’s $2.8 Billion AI Contract Haul Changes the Stock’s StoryThe company reported a GAAP net loss attributable to TeraWulf of $939.9 million, compared with a $427.6 million loss in the prior quarter. Fleury said the increase was primarily driven by a $755.7 million non-cash loss from the change in fair value of Google warrants, reflecting an increase in TeraWulf’s stock price. The adjustment had no impact on liquidity, he said. Non-GAAP adjusted EBITDA was negative $18.3 million, versus negative $4.1 million in the first quarter, as the company incurred pre-revenue operating and development costs ahead of further HPC capacity deliveries.
Lake Mariner Capacity Moves Into Service Chairman and CEO Paul Prager said the company completed its CB-3 building at Lake Mariner, bringing total revenue-generating critical IT capacity at the campus to 102 megawatts as of early July. The completion also satisfied conditions for $600 million of Google credit support for Fluidstack’s lease obligations to become effective.
How TeraWulf’s Anthropic Deal Booted Up a $19B AI EmpireChief Technology Officer Nazar Khan said the first CB-4 data hall was in Level 2 commissioning and was expected to enter Level 3 commissioning in mid-August. TeraWulf expects the first CB-4 data hall to reach its contractual delivery milestone and begin generating lease revenue in late September. The first CB-5 data hall is expected to begin energizing in very early January.
Khan said electrical labor availability and customer-driven design optimization had been the most significant execution variables. TeraWulf added a second electrical contractor and scaled its workforce to support roughly 1,000 electricians at peak staffing levels.
Fluidstack lease amendments executed in early July increased contracted capacity at both CB-4 and CB-5 from 162 MW to 168 MW. Fleury said TeraWulf will contribute about $150 million for tenant fit-out costs incurred through June 30, 2026, in exchange for more than $300 million of incremental lease revenue over the initial 10-year term. Including the expanded contracted capacity, the amendments are expected to add more than $500 million of lease revenue over the initial lease terms.
TeraWulf’s reported HPC leasing segment profit margin was approximately 28% during the quarter. Fleury said that figure included tenant fit-out revenue and costs, $6.8 million of pre-revenue operating costs at WULF Compute and $6.0 million of development costs at uncontracted sites. Excluding those items, the segment margin was approximately 80%, compared with the company’s long-term target of about 85%.
Kentucky Expansion Includes Anthropic Lease Following the quarter’s end, TeraWulf signed a 20-year lease with Anthropic for approximately 401 MW of critical IT capacity at the Justified Data Campus in Hawesville, Kentucky. Prager said the agreement represents approximately $19 billion in contracted revenue during the initial lease term and expands the company’s relationship with Anthropic.
The company also acquired the Muskie Data Campus in Eastern Kentucky, a gigawatt-scale development site located in an industrial park. The campus is being developed with Kentucky Power, an American Electric Power company, under electric service arrangements governed by a Kentucky Public Service Commission-approved data-center tariff.
Kentucky Power is expected to build a new 345-kilovolt substation connected to AEP’s existing 765-kilovolt transmission system, with initial electric service expected in the fourth quarter of 2028. TeraWulf said it is increasingly optimistic that Muskie could eventually expand to as much as 2 GW, and management said commercialization discussions were active with prospective customers.
Management reiterated its target of contracting an incremental 250 MW to 500 MW of critical IT capacity annually. Khan said that range reflects not only customer demand but also the capital, equipment and labor required to execute projects, noting that a project at the high end of the range can require nearly $5 billion of total capital.
Abernathy Sale and Chesapeake Progress TeraWulf agreed after quarter-end to sell its entire 50.1% interest in the Abernathy joint venture for approximately $530 million. Fleury said the transaction represents a 20% internal rate of return on TeraWulf’s original investment. The company received an initial $250 million payment in July, expects another $150 million on or before Dec. 31, 2026, and expects approximately $130 million on or before April 30, 2027, subject to transaction terms.
Prager said selling the investment would allow TeraWulf to focus capital and management attention on large-scale projects where it controls the site, power infrastructure, development process and customer relationship.
Separately, the Federal Energy Regulatory Commission on July 29 authorized TeraWulf’s proposed acquisition of the Morgantown site, a key regulatory condition toward closing the Chesapeake transaction. The site includes approximately 210 MW of existing grid-connected generation and could potentially support an integrated generation, storage and data-center campus with up to 1 GW of data-center capacity, subject to remaining closing conditions and required consents.
Liquidity and Capital Outlook Cash and restricted cash totaled approximately $3.0 billion at June 30. Parent-level unrestricted cash was approximately $1.2 billion at quarter-end and increased to about $1.45 billion after the initial Abernathy payment.
At WULF Compute, gross cash totaled approximately $1.9 billion, or about $1.5 billion after accounting for debt service reserves and interest-during-construction accounts. The company had completed approximately $2.3 billion of project capital expenditures at Lake Mariner, with about $1.7 billion remaining; roughly two-thirds of the remaining spending is committed.
TeraWulf now estimates total WULF Compute project costs of approximately $9.1 million per critical IT MW, within its original $8 million to $10 million per-MW guidance range. Fleury said the updated estimate incorporates electrical labor constraints and evolving customer equipment and operational requirements.
The company said existing liquidity and expected Abernathy proceeds should fund its remaining Lake Mariner commitments, planned Muskie equity investment and letter-of-credit needs, the proposed Chesapeake acquisition and other sites being pursued without accessing equity capital markets. Management said it expects to use project-level financing for future development, while maintaining what Fleury described as conservative leverage and a healthy equity layer.
About TeraWulf (NASDAQ:WULF)TeraWulf, 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.
This 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. (WULF - Free Report) came out with a quarterly loss of $0.37 per share versus the Zacks Consensus Estimate of a loss of $0.2. This compares to a loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -85.00%. A quarter ago, it was expected that this company would post a loss of $0.16 per share when it actually produced a loss of $0.44, delivering a surprise of -175%.
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 $44.77 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.31%. This compares to year-ago revenues of $47.64 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 64.3% since the beginning of the year versus the S&P 500's gain of 13%.
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 unfavorable. 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 #5 (Strong Sell) for the stock. So, the shares are expected to underperform 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 -$0.16 on $81.16 million in revenues for the coming quarter and -$1.54 on $304.6 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 bottom 35% 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, Marex Group PLC (MRX - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12.
This company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has been revised 4.8% higher over the last 30 days to the current level.
Marex Group PLC's revenues are expected to be $589 million, up 17.8% from the year-ago quarter.
102 MW of revenue-generating critical IT capacity online at Lake Mariner, with an additional 336 MW under construction and delivery expected within cost and schedule guidance
Expands power-backed platform in Kentucky through ~$19 billion Anthropic lease at Justified and acquisition of the gigawatt-scale Muskie Data Campus
Agrees to monetize Abernathy Joint Venture interest for ~$530 million and reaffirms target of contracting 250–500 MW of incremental critical IT capacity annually
EASTON, Md., Aug. 05, 2026 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a vertically integrated owner, developer and operator of large-scale digital infrastructure, today announced its financial results for the second quarter ended June 30, 2026 and provided an update on its operations, development activities and strategic execution.
Second Quarter 2026 Financial Highlights
Generated second-quarter revenue of $44.8 million, including $31.9 million of HPC lease revenue, representing approximately 71% of total revenue.Ended the quarter with approximately $3.0 billion of cash and restricted cash, maintaining substantial liquidity to fund contracted development and future growth. Q2 2026 Operational and Development Highlights
Operated 81 MW of revenue-generating critical IT capacity at Lake Mariner as of June 30, 2026 and completed delivery of CB-3 in early July, increasing revenue-generating capacity to 102 MW and satisfying the applicable conditions for $600 million of Google’s credit support for Fluidstack’s lease obligations to become effective.Continued construction of an additional 336 MW across CB-4 and CB-5. The first CB-4 data hall has entered commissioning, with phased delivery and rent commencement expected during the second half of 2026, while CB-5 remains targeted to begin phased delivery in early 2027. WULF Compute continues to progress within the Company’s previously disclosed cost guidance of $8-10 million per critical IT MW.Acquired the Muskie Data Campus in Eastern Kentucky and entered into electric service and related infrastructure agreements with Kentucky Power Company providing for up to 1 GW of contracted electric service. Subsequent Events
Entered into a 20-year data center lease with Anthropic for approximately 401 MW of critical IT capacity at the Justified Data Campus. The lease represents approximately $19 billion of contracted revenue over the initial term and up to approximately $33 billion if Anthropic exercises both five-year extension options.Entered into an agreement to sell the Company’s entire 50.1% interest in the Abernathy Joint Venture for aggregate cash consideration of approximately $530 million.Received FERC authorization for the proposed acquisition of the Morgantown generating station, clearing a significant regulatory condition toward closing and development of the up to 1 GW Chesapeake Data Campus. Management Commentary
Paul Prager, Chairman and Chief Executive Officer of TeraWulf, commented:
“The second quarter demonstrates that TeraWulf is moving from platform formation to scaled execution. At Lake Mariner, we delivered additional contracted capacity and converted it into recurring lease revenue. In Kentucky, we established the next phase of growth through the Anthropic lease at Justified and the acquisition of the gigawatt-scale Muskie Data Campus.
These are not isolated developments. They reflect a repeatable model built around controlling power-advantaged infrastructure, securing long-duration customer contracts and delivering capacity in phases. As access to power becomes the defining constraint on AI infrastructure development, we believe our ability to combine energy expertise, infrastructure control and execution at scale will become increasingly valuable.
Our agreement to monetize Abernathy reflects the same discipline. We are prepared to realize value where appropriate and redeploy capital toward larger-scale opportunities where we have greater control over the infrastructure, customer relationship and long-term economics. Our objective is not simply to accumulate megawatts—it is to build a durable, capital-efficient platform that compounds value for shareholders."
Patrick Fleury, Chief Financial Officer of TeraWulf, added:
“The second quarter marked another meaningful step in the transformation of our financial profile, with HPC leasing representing approximately 71% of total revenue.
The delivery of CB-3 also unlocked $600 million of Google’s credit support for Fluidstack’s lease obligations. This is an important credit milestone that further strengthens the contracted revenue profile of the Lake Mariner buildout.
With substantial liquidity and access to project-level financing, we have the flexibility to complete our contracted developments and fund the next phase of growth. We remain focused on matching capital deployment to contracted demand and selectively recycling capital when doing so improves control, scale and long-term shareholder returns.”
Infrastructure Platform Expansion
TeraWulf continues to expand its national platform beyond its flagship Lake Mariner Data Campus, focusing on power-advantaged sites capable of supporting large-scale, phased HPC development.
Justified Data Campus - Hawesville, Kentucky
Justified is a large-scale HPC campus with access to up to approximately 480 MW of gross power capacity, an energized on-site substation, existing high-voltage transmission infrastructure and more than 250 buildable acres. Subsequent to quarter-end, TeraWulf entered into a 20-year lease with Anthropic for approximately 401 MW of critical IT capacity, with initial delivery expected in the second half of 2027 and full delivery expected in early 2028.
Muskie Data Campus - Grayson, Kentucky
Acquired in May 2026, Muskie comprises approximately 308 acres in Eastern Kentucky. Electric service and related infrastructure agreements with Kentucky Power Company provide for up to 1 GW of contracted electric service, with initial service expected in the fourth quarter of 2028 and phased development thereafter.
Chesapeake Data Campus - Morgantown, Maryland
Chesapeake is an existing grid-connected generation site with approximately 210 MW of operational capacity, substantial electrical infrastructure and significant long-term expansion potential. On July 29, 2026, FERC authorized the pending acquisition of the Morgantown generating station. Subject to the remaining closing conditions and required approvals, the site could support an integrated generation, energy-storage and data center campus capable of scaling to up to 1 GW, with initial data center operations currently contemplated for 2030.
New York Platform - Lake Mariner and Lake Hawkeye
In New York, TeraWulf continues to expand its flagship Lake Mariner Data Campus while advancing Lake Hawkeye as a longer-term redevelopment opportunity. In addition to the 102 MW of revenue-generating critical IT capacity and 336 MW currently under construction at Lake Mariner, the Company is pursuing 250 MW of incremental power capacity, subject to applicable interconnection approval. Lake Hawkeye encompasses approximately 183 leased acres at a former industrial site with existing electrical infrastructure and, subject to permitting and site development, has the potential to support approximately 400 MW of gross capacity, or approximately 320 MW of critical IT load, with operations not currently contemplated until approximately 2029.
Strategic Positioning
TeraWulf’s development model is focused on controlling power-advantaged infrastructure, securing long-duration, credit-supported customer contracts, aligning capital deployment with contracted demand and financing and delivering capacity in sequential phases. The Muskie acquisition, Anthropic lease and agreement to monetize the Company’s interest in the Abernathy Joint Venture demonstrate the repeatability of this model across site acquisition, customer contracting, project execution and capital recycling.
Against this backdrop, TeraWulf reaffirms its target of contracting 250 MW to 500 MW of incremental critical IT capacity annually. The Company intends to pursue that growth selectively, prioritizing opportunities with secured power, clear customer demand, scalable infrastructure and attractive risk-adjusted returns.
Investor Conference Call and Webcast
The Company will host its earnings conference call and webcast for the second quarter ended June 30, 2026, today, August 5, 2026, at 8:00 a.m. Eastern Time. The call will be available for replay in the “News & Events” section of the Company’s website at https://investors.terawulf.com/events-and-presentations/.
About TeraWulf
TeraWulf develops, owns and operates large-scale, power-backed digital infrastructure in the United States, purpose-built for high-performance computing and artificial intelligence workloads. The Company combines long-term control of land, power and interconnection infrastructure with deep in-house expertise in energy markets, infrastructure development and data center operations. TeraWulf operates the Lake Mariner Data Campus in New York and is developing and pursuing additional large-scale campuses in Kentucky, New York and Maryland. The Company also operates existing bitcoin-mining infrastructure at Lake Mariner, portions of which are being repurposed to support contracted HPC development.
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 its data center campuses and future strategic growth initiatives in a timely manner or within anticipated cost estimates; (3) operational risks associated with its data centers and TeraWulf’s 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2026 AND DECEMBER 31, 2025
(In thousands, except number of shares and par value; unaudited)
June 30, 2026 December 31, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents$2,619,191 $3,266,389 Restricted cash 142,938 189,933 Accounts receivable 13,202 1,212 Digital assets 133 270 Prepaid expenses 18,314 6,272 Other current assets 12,726 14,197 Total current assets 2,806,504 3,478,273 Property, plant and equipment, net 3,600,191 1,507,699 Equity in net assets of investee 424,062 446,008 Goodwill 55,457 55,457 Operating lease right-of-use asset 101,754 103,975 Finance lease right-of-use asset 117,814 119,338 Restricted cash 266,479 266,453 Deferred charges 572,599 572,888 Restricted trust investments 20,607 — Other assets 82,928 8,091 TOTAL ASSETS$8,048,395 $6,558,182 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable$197,812 $65,139 Accrued construction liabilities 287,461 102,582 Accrued interest 57,292 52,775 Other current liabilities 159,472 74,170 Other amounts due to related parties 664 200 Current portion of deferred rent liability 49,682 58,184 Current portion of operating lease liability 2,102 2,015 Current portion of finance lease liability 2 2 Warrant liabilities 1,816,690 844,698 Current portion of long-term debt 90,718 46,316 Short-term convertible notes 1,101,976 489,767 Total current liabilities 3,763,871 1,735,848 Deferred rent liability, net of current portion 944 23,285 Operating lease liability, net of current portion 21,220 22,309 Finance lease liability, net of current portion 288 289 Long-term debt 3,019,335 3,052,240 Convertible notes 1,001,083 1,582,788 Deferred tax liabilities 132 76 Other liabilities 93,994 902 TOTAL LIABILITIES 7,900,867 6,417,737 Commitments and Contingencies (See Note 12) EQUITY: Preferred stock, $0.001 par value, 100,000,000 authorized at June 30, 2026 and December 31, 2025; none issued and outstanding at June 30, 2026 and December 31, 2025; aggregate liquidation preference of $0 at June 30, 2026 and December 31, 2025 — — Common stock, $0.001 par value, 950,000,000 authorized at June 30, 2026 and December 31, 2025; 522,901,181 and 444,534,694 issued at June 30, 2026 and December 31, 2025, respectively; 498,932,431 and 420,065,944 outstanding at June 30, 2026 and December 31, 2025, respectively 523 444 Additional paid-in capital 2,656,313 1,285,202 Treasury stock at cost, 23,968,750 and 24,468,750 at June 30, 2026 and December 31, 2025, respectively (148,309) (151,509)Accumulated deficit (2,361,243) (993,692)Total TeraWulf Inc. stockholders' equity 147,284 140,445 Noncontrolling interests 244 — Total equity 147,528 140,445 TOTAL LIABILITIES AND EQUITY$8,048,395 $6,558,182 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands, except number of shares and loss per common share)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue: Digital asset revenue$12,835 $47,636 $25,825 $82,041 HPC lease revenue 31,932 — 52,954 — Total revenue 44,767 47,636 78,779 82,041 Costs and expenses: Cost of revenue (exclusive of depreciation shown below) 12,400 22,094 14,761 46,647 Operating expenses 21,705 2,039 30,721 3,183 Operating expenses – related party 1,733 1,475 3,919 3,223 Selling, general and administrative expenses 112,411 9,996 240,016 56,569 Selling, general and administrative expenses – related party 14,529 4,292 14,688 7,863 Depreciation 21,241 18,786 49,718 34,360 Loss (gain) on fair value of digital assets, net 799 (887) 1,452 (17)Change in fair value of contingent consideration — 1,600 — 1,600 Impairment of property, plant, and equipment — 25,697 — Loss on disposals of property, plant, and equipment 399 3,831 399 3,831 Total costs and expenses 185,217 63,226 381,371 157,259 Operating loss (140,450) (15,590) (302,592) (75,218)Interest expense (56,389) (4,012) (123,460) (8,061)Change in fair value of warrants (755,667) — (971,992) — Loss on extinguishment of debt (7,116) — (7,116) — Interest income 28,956 1,232 58,367 3,491 Other income 930 — 930 — Loss before income tax and equity in net loss of investee (929,736) (18,370) (1,345,863) (79,788)Income tax provision (28) — (56) — Equity in net loss of investee, net of tax (11,063) — (22,611) — Net loss (940,827) (18,370) (1,368,530) (79,788)Less: net loss attributable to noncontrolling interests (910) — (979) — Net loss attributable to TeraWulf Inc$(939,917) $(18,370) $(1,367,551) $(79,788) Loss per common share: Basic and diluted$(1.94) $(0.05) $(3.01) $(0.21) Weighted average common shares outstanding: Basic and diluted 485,734,901 386,895,095 454,540,588 385,032,650 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands; unaudited)
Six Months Ended June 30, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss$(1,368,530) $(79,788)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 23,000 1,215 Related party expense settled with respect to common stock — 2,375 Stock-based compensation expense 185,357 39,978 Stock-based charitable contribution 14,390 — Depreciation 49,718 34,360 Accretion of asset retirement obligations 435 — Change in asset retirement obligations estimate 15 — Amortization of right-of-use asset 3,745 1,435 Revenue recognized from digital assets mined and hosting services (25,825) (82,041)Loss (gain) on fair value of digital assets, net 1,452 (17)Change in fair value of contingent consideration — 1,600 Impairment of property, plant, and equipment 25,697 — Loss on disposals of property, plant, and equipment 399 3,831 Change in fair value of warrants 971,992 — Loss on extinguishment of debt 7,116 — Deferred income tax provision 56 — Other income (43) — Equity in net loss of investee, net of tax 22,611 — Changes in operating assets and liabilities: Increase in accounts receivable (12,123) (544)Increase in prepaid expenses (12,042) (3,259)Increase in other current assets (7,416) (1,027)Decrease in deferred charges 289 — Decrease (increase) in other assets 5,348 (7,700)Increase in accounts payable 5,584 355 (Decrease) increase in accrued interest and other current liabilities (12,394) 1,770 Increase (decrease) in other amounts due to related parties 464 (750)(Decrease) increase in deferred rent liability (30,843) 90,000 Decrease in operating lease liability (1,003) (43)Decrease in other liabilities (1,749) (73)Net cash (used in) provided by operating activities (154,300) 1,677 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of and deposits on plant and equipment (1,378,514) (213,629)Proceeds from sales of property, plant and equipment 68 1,882 Cash paid for asset acquisition (231,350) — Acquisition of a business, net of cash acquired — (2,731)Purchase of securities (20,563) — Proceeds from sale of digital assets 24,643 82,382 Net cash used in investing activities (1,605,716) (132,096) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of short-term debt, net of issuance costs paid of $7,250 and $0 92,750 — Repayment of short-term debt (100,075) — Payment of debt issuance costs for revolving credit facility (2,145) — Proceeds from issuance of common stock, net of issuance costs paid of $35,864 and $0 1,199,820 — Proceeds from exercise of warrants 7,038 — Purchase of treasury stock — (33,292)Payments of tax withholding related to net share settlements of stock-based compensation awards (131,539) (18,936)Net cash provided by (used in) financing activities 1,065,849 (52,228) Net change in cash and cash equivalents (694,167) (182,647)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$3,028,608 $91,418 Cash paid during the period for: Interest$131,072 $7,114 Income taxes$— $—
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, accretion of asset retirement obligations, related party expenses settled with respect to Common Stock and stock-based charitable contribution to The TeraWulf Charitable Foundation 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 and other income for which management believes are not reflective of the Company’s ongoing operating activities; (v) change in fair value of warrant liabilities, changes in fair value of contingent consideration, loss on extinguishment of debt, loss on disposals of property, plant and equipment and impairment of property, plant and equipment 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 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.
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 June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net loss attributable to TeraWulf, Inc$(939,917) $(18,370) $(1,367,551) $(79,788)Net loss attributable to non-controlling interest (910) — (979) — Net loss (940,827) (18,370) (1,368,530) (79,788)Adjustments to reconcile net loss to non-GAAP Adjusted EBITDA: Equity in net loss of investee, net of tax 11,063 — 22,611 — Income tax provision 28 — 56 — Other income (930) — (930) — Interest income (28,956) (1,232) (58,367) (3,491)Loss on extinguishment of debt 7,116 — 7,116 — Change in fair value of warrants 755,667 — 971,992 — Interest expense 56,389 4,012 123,460 8,061 Loss on disposals of property, plant, and equipment 399 3,831 399 3,831 Impairment of property, plant, and equipment — — 25,697 — Change in fair value of contingent consideration — 1,600 — 1,600 Depreciation 21,241 18,786 49,718 34,360 Accretion of asset retirement obligations 267 — 435 — Amortization of right-of-use asset 1,874 750 3,745 1,435 Stock-based compensation expense 83,939 1,304 185,357 39,978 Stock-based charitable contribution 14,390 — 14,390 — Related party expense settled with respect to common stock — 2,375 — 2,375 Acquisition-related transaction costs — 1,475 438 1,475 Non-GAAP Adjusted EBITDA$(18,340) $14,531 $(22,413) $9,836
Key Takeaways TeraWulf is expected to report lower Q2 revenues and EPS year over year on Aug. 5.WULF may see weaker mining revenue as HPC conversion, costs and development spending weigh.TeraWulf could benefit from higher HPC lease revenues and progress on major infrastructure projects. TeraWulf (WULF - Free Report) is slated to report second-quarter 2026 results on Aug. 5, before the market opens. The company’s quarterly results are likely to display a year-over-year decrease in revenues and earnings per share (EPS).
In the last reported quarter, this bitcoin miner reported a loss of 44 cents per share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The results were mainly impacted by lower Bitcoin production, partly offset by a 117% jump in HPC lease revenues.
Over the preceding four quarters, WULF’s EPS missed the Zacks Consensus Estimate on all occasions, the average miss being negative 97.6%. This is depicted in the graph below:
WULF: Factors at Play and Q2 ProjectionsTeraWulf’s second-quarter 2026 results are expected to reflect continued pressure from its shrinking Bitcoin-mining business. Lower mining activity and the ongoing conversion of legacy mining infrastructure to HPC use may have weighed on digital-asset revenues, while operating expenses, development costs and pre-revenue costs at WULF Compute could have limited profitability.
On the positive side, a full-quarter contribution from the 60 MW Core42 deployment is likely to have supported higher HPC lease revenues. The expected completion and energization of CB-3 for Fluidstack and Google may have provided an additional boost if lease commencement occurred as planned, while progress on CB-4, CB-5 and the Kentucky customer agreement could have strengthened the company’s forward outlook.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $44.63 million, implying a 6.32% decrease from the prior-year quarter’s reported number.
WULF’s activities in the to-be-reported quarter were inadequate in garnering analysts’ confidence. The Zacks Consensus Estimate for second-quarter EPS has remained unchanged for a month. It suggests a significant dip from the year-ago quarter’s tally.
What Our Quantitative Model Predicts for WULFOur proven model does not conclusively predict a surprise in terms of EPS for WULF this quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an EPS beat, which is not the case here.
WULF has an Earnings ESP of +7.69% and currently carries a Zacks Rank of 5 (Strong Sell). You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a LookHere are two stocks from the broader finance sector — Brookfield Asset Management Ltd. (BAM - Free Report) and Ridgepost Capital, Inc. (RPC - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report an EPS beat this quarter.
Brookfield Asset Management is slated to report quarterly numbers on Aug. 5. BAM has an Earnings ESP of +1.14% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ridgepost Capital is slated to report quarterly numbers on Aug. 5. RPC has an Earnings ESP of +7.14% and a Zacks Rank of 3 at present.
mPhase Technologies (OTCMKTS:XDSL – Get Free Report) and TeraWulf (NASDAQ:WULF – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership 62.5% of TeraWulf shares are owned by institutional investors. 47.2% of mPhase Technologies shares are owned by insiders. Comparatively, 15.9% of TeraWulf shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility mPhase Technologies has a beta of -0.2, suggesting that its stock price is 120% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 3.76, suggesting that its stock price is 276% more volatile than the S&P 500.
Profitability This table compares mPhase Technologies and TeraWulf’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets mPhase Technologies N/A N/A N/A TeraWulf -611.46% -305.07% -8.42% Earnings and Valuation This table compares mPhase Technologies and TeraWulf”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio mPhase Technologies N/A N/A N/A N/A N/A TeraWulf $168.46 million 51.95 -$661.42 million ($2.48) -7.12 mPhase Technologies has higher earnings, but lower revenue than TeraWulf.
Analyst Recommendations This is a summary of recent ratings and price targets for mPhase Technologies and TeraWulf, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score mPhase Technologies 0 0 0 0 0.00 TeraWulf 2 1 15 2 2.85 TeraWulf has a consensus price target of $34.29, suggesting a potential upside of 94.18%. Given TeraWulf’s stronger consensus rating and higher probable upside, analysts clearly believe TeraWulf is more favorable than mPhase Technologies.
Summary TeraWulf beats mPhase Technologies on 7 of the 11 factors compared between the two stocks.
About mPhase Technologies (Get Free Report)
mPhase Technologies, Inc. provides artificial intelligence and machine learning focused technology products and related services. It offers mPower EV Charging Network; and Consumer Engagement Platform to understand behavior patterns of consumers and allows the retailers to make these just in time offers available to the end consumer as they travel. mPhase Technologies, Inc. was founded in 1979 and is headquartered in Rockville, Maryland.
About TeraWulf (Get Free Report)
TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.
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Bitcoin (BTC -0.66%) mining revenue can rise or fall with Bitcoin prices, competition from other miners, and electricity costs. TeraWulf (WULF -0.90%) is trying to reduce revenue volatility by leasing data center infrastructure to artificial intelligence (AI) customers.
Image source: Getty Images.
TeraWulf recently signed a 20-year agreement to provide Anthropic with roughly 401 megawatts of AI computing capacity. The lease is expected to generate approximately $19 billion of contracted revenue, with the first facilities scheduled to begin operating in late 2027.
However, with TeraWulf stock up nearly 242% in the past year (as of July 31), investors must determine how much of that opportunity is already reflected in the share price.
Why Bitcoin miners are turning to AI Bitcoin-mining machines cannot be converted into AI servers. The real opportunity lies in the power infrastructure some miners already control, including land, grid interconnections, substations, electrical systems, and cooling equipment.
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Bitcoin miners that already control land, grid connections, and substations may be able to deliver AI capacity faster than developers starting from scratch. But only a few can make the shift, because AI data centers need highly reliable power, advanced cooling, fast networking, and substantial financing.
TeraWulf is already making progress. The company's 60 megawatts of operating AI and high-performance computing (HPC) capacity generated $21 million of lease revenue in the first quarter, compared with $13 million from Bitcoin mining. HPC leasing accounted for about 62% of total revenue.
TeraWulf's opportunity can increase expenses The Anthropic lease is expected to generate about $19 billion over its initial 20-year term, averaging $950 million annually. However, this is not current revenue or profit. Anthropic will begin paying rent only as TeraWulf delivers each phase. Additionally, construction, operating, and financing costs will reduce the amount ultimately available to shareholders.
TeraWulf must spend heavily on construction before it can collect rent from Anthropic. The company has not yet disclosed the project's total cost or full financing plan. TeraWulf exited the first quarter with $5.3 billion in debt.
It has already used stock sales to help fund its expansion. An April common stock offering and other share issuances increased its share count from 425.1 million on March 31 to 495.5 million on May 5. Hence, while further stock sales could fund construction, they could also dilute existing shareholders.
Is WULF still worth buying? TeraWulf's market capitalization was around $8.75 billion as of July 31. Hence, investors are already valuing the company at almost 9.2 times the Anthropic lease's simple average annual revenue, even before including the remaining construction capital.
While the valuation and execution risks cannot be ignored, TeraWulf's strengths include a 20-year contract with Anthropic, direct ownership of the infrastructure, and an AI-hosting business that is already generating revenue.
TeraWulf appears to be a higher-risk, higher-reward stock that is best kept as a small position. The key question is how the company will fund the Anthropic campus. Affordable project financing would support the investment case, while another large stock sale could dilute existing shareholders.
First Trust Advisors LP trimmed its holdings in shares of TeraWulf Inc. (NASDAQ:WULF – Free Report) by 8.7% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 821,483 shares of the company’s stock after selling 78,517 shares during the period. First Trust Advisors LP owned approximately 0.19% of TeraWulf worth $11,854,000 at the end of the most recent reporting period.
A number of other hedge funds and other institutional investors have also modified their holdings of WULF. Vanguard Group Inc. increased its stake in TeraWulf by 37.4% during the 4th quarter. Vanguard Group Inc. now owns 33,643,009 shares of the company’s stock valued at $386,558,000 after buying an additional 9,162,958 shares during the period. Voloridge Investment Management LLC acquired a new stake in shares of TeraWulf in the 3rd quarter worth approximately $69,006,000. Wellington Management Group LLP lifted its stake in shares of TeraWulf by 36,193.2% in the 3rd quarter. Wellington Management Group LLP now owns 3,901,878 shares of the company’s stock worth $44,559,000 after acquiring an additional 3,891,127 shares during the period. Jennison Associates LLC bought a new position in shares of TeraWulf in the first quarter valued at approximately $53,418,000. Finally, Marshall Wace LLP boosted its holdings in shares of TeraWulf by 574.2% in the fourth quarter. Marshall Wace LLP now owns 3,186,200 shares of the company’s stock valued at $36,609,000 after acquiring an additional 2,713,587 shares in the last quarter. 62.49% of the stock is currently owned by institutional investors.
Insider Activity In related news, CEO Paul B. Prager sold 166,650 shares of TeraWulf stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $24.43, for a total value of $4,071,259.50. Following the transaction, the chief executive officer directly owned 4,249,202 shares in the company, valued at $103,808,004.86. The trade was a 3.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 15.90% of the stock is owned by insiders.
Recent news headlines
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Here are the key news stories impacting TeraWulf this week:
Positive Sentiment: The Federal Energy Regulatory Commission approved TeraWulf’s subsidiary purchase of Morgantown Power, a former Maryland power plant. The acquisition is expected to provide power capacity for a planned AI campus and removes an important regulatory hurdle for the company’s data-center pivot. FERC approves TeraWulf purchase of former Maryland power plant for AI campus Positive Sentiment: The approval drove a sharp intraday rally in WULF, with trading volume above its recent average, as investors focused on the potential value of its power assets and AI data-center development pipeline. Why Is TeraWulf Stock Surging on Thursday? Positive Sentiment: Chardan Capital initiated coverage with a Buy rating and a $32 price target, implying substantial upside based on expectations for TeraWulf’s AI-infrastructure opportunity. Chardan Capital coverage of TeraWulf Neutral Sentiment: TeraWulf’s rally is part of a broader rebound in Bitcoin-miner companies repositioning themselves as AI and high-performance-computing infrastructure providers. The sector trend may support sentiment, but it also leaves the stock exposed to shifts in investor appetite for speculative data-center names. TeraWulf and Cipher Digital are up 50% in 2026 Negative Sentiment: Analysts cautioned that WULF looks expensive relative to sales, while Keefe, Bruyette & Woods issued a pessimistic forecast. These concerns highlight the gap between the stock’s growth expectations and its current financial performance. TeraWulf Stock Looks Strong On Returns But Rich On Sales Negative Sentiment: Ahead of the upcoming quarterly report, Zacks expects earnings to decline and sees limited indicators for a likely earnings beat. TeraWulf’s previous quarter included a significant EPS miss and sharply negative margins, keeping execution and financing risks in focus. Earnings Preview: TeraWulf Q2 Earnings Expected to Decline TeraWulf Stock Up 18.1% WULF stock opened at $17.82 on Friday. TeraWulf Inc. has a 12 month low of $4.64 and a 12 month high of $29.84. The firm has a market cap of $8.83 billion, a PE ratio of -7.19 and a beta of 3.73. The firm has a 50 day simple moving average of $23.38 and a 200 day simple moving average of $19.31. The company has a debt-to-equity ratio of 33.00, a current ratio of 1.20 and a quick ratio of 1.20.
Recent news headlines
TeraWulf (NASDAQ:WULF – Get Free Report) last issued its earnings results on Friday, May 8th. The company reported ($1.01) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.82). TeraWulf had a negative return on equity of 305.07% and a negative net margin of 611.46%.The business had revenue of $34.01 million for the quarter, compared to the consensus estimate of $34.69 million. During the same quarter in the previous year, the business posted ($0.16) earnings per share. The company’s quarterly revenue was down 1.1% on a year-over-year basis. Equities research analysts forecast that TeraWulf Inc. will post -1.09 earnings per share for the current fiscal year.
Wall Street Analyst Weigh In Several equities research analysts recently commented on WULF shares. Sanford C. Bernstein started coverage on TeraWulf in a report on Wednesday, June 3rd. They set an “outperform” rating and a $46.00 target price on the stock. Needham & Company LLC increased their price target on TeraWulf from $28.00 to $33.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. Oppenheimer reiterated an “outperform” rating and set a $35.00 price target on shares of TeraWulf in a research report on Wednesday, May 27th. Chardan Capital initiated coverage on TeraWulf in a research note on Monday. They issued a “buy” rating and a $32.00 price objective on the stock. Finally, Citigroup started coverage on TeraWulf in a report on Monday, June 29th. They issued a “buy” rating and a $36.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, TeraWulf currently has an average rating of “Moderate Buy” and an average target price of $34.29.
Read Our Latest Report on TeraWulf
TeraWulf Profile (Free Report)
TeraWulf, 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.
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Shares of IREN (NASDAQ:IREN) are up 27% midday Thursday, joining a broad rally across Bitcoin (CRYPTO:BTC)-miner-turned-AI-infrastructure names. TeraWulf (NASDAQ:WULF) stock is up 18% and Cipher Mining (NASDAQ:CIFR) shares are up 28%, riding a risk-on session with the Nasdaq 100 up 3%.
Even after today’s pop, the year to date (YTD) scoreboard is lopsided. Cipher Mining stock is up 53% YTD and TeraWulf shares are up 56% YTD, while IREN stock is down 2% YTD. The CoinShares Bitcoin Mining ETF (NASDAQ:WGMI), which holds all three names, is up 37% YTD.
That gap has revived a debate that has followed the sector all summer. If the three companies share the same pivot from Bitcoin mining into AI and high-performance computing (HPC) data centers, why has IREN traded so much worse than its peers, and is today’s move the start of a catch-up trade?
A Sector-Wide Rally Today’s move looks sector-wide rather than IREN-specific. Crypto-linked and AI-infrastructure names are bouncing together, and the broad-market lift of the Nasdaq 100 is doing much of the work. No fresh company release from IREN seems to have triggered the pop, and news feeds have been quiet on all three miners this week.
The one substantive analyst note across the group came from Morgan Stanley (NYSE:MS | MS Price Prediction), which flagged Cipher Mining as a preferred beneficiary of ERCOT’s large-load “Base Load” classification process. That framework could clear advanced Texas data-center projects toward grid connection sooner, a potentially important tailwind for CIFR’s Barber Lake and Black Pearl campuses. Morgan Stanley stock is up 3% today, part of the same risk-on tape lifting the miners.
The Catch-Up Case for IREN IREN stock’s lag is striking given the company’s contracted book. The company has disclosed a five-year, $3.4 billion AI Cloud contract with NVIDIA (NASDAQ:NVDA) plus up to $2.1 billion of NVIDIA investment vesting as IREN scales toward 600,000 GPUs. IREN’s management is targeting $3.7 billion in annualized recurring revenue and 150,000 deployed GPUs by end of calendar 2026.
The underlying business trend is another mismatch with the tape. IREN’s AI Cloud services revenue nearly doubled sequentially to $33.6 million in Q3 FY2026, while Bitcoin mining revenue fell to $111.2 million as decommissioned equipment drove $140.4 million in non-cash impairments. TeraWulf’s HPC leasing segment jumped 117% quarter over quarter and now contributes over 60% of revenue at $21.02 million.
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CEO Daniel Roberts stated on the Q3 FY2026 call, “There are no idle GPUs…all of our operational capacity is fully contracted.” IREN’s secured power portfolio now spans 5 gigawatts across North America, Spain and Australia, the largest of the three names. TeraWulf brings a 2.9-gigawatt platform with over $13 billion in contracted revenue, and CEO Paul Prager has described the “strongest demand environment to date.”
Cipher Mining carries 700 MW of contracted HPC capacity with roughly $787 million in average annualized net operating income. This is anchored by a 15-year, 300 MW, $5.5 billion Amazon (NASDAQ:AMZN) Web Services lease and a 10-year, 300 MW, $3.8 billion Fluidstack and Google agreement.
The valuation split is where the debate sharpens. IREN carries a trailing price-to-earnings (P/E) ratio of 48.18x and is the only one of the three with an actual trailing-twelve-month profit. TeraWulf and Cipher Mining have no TTM P/E ratio since neither is profitable on a trailing 12-month basis, while bears counter that IREN’s Q3 FY2026 revenue of $144.8 million missed consensus estimates as Bitcoin mining hardware was decommissioned, and Reddit (NYSE:RDDT) chatter on IREN turned “very bearish” through late July even as WULF sentiment stayed bullish.
What to Watch Now The bull-bear split here is unusually clean. WULF and CIFR bring larger cumulative contracted-revenue books at over $13 billion and roughly $11.4 billion, respectively, but heavier generally accepted accounting principles (GAAP) losses and equity dilution. IREN brings the marquee graphics processing unit (GPU) partnership, the largest secured power portfolio, and the biggest 2026 annual recurring revenue (ARR) target of the three, yet the stock has not repriced with its peers.
An additional takeaway is that the sector concentration cuts both ways. The WGMI ETF is a reminder that one macro theme, AI infrastructure demand routed through former Bitcoin miners, is driving all three names on days like this, which means the trio can also sell off together on any wobble in AI capex sentiment.
Investors can watch for whether today’s gains hold into the close and whether the next IREN update on GPU deployment or contract wins shifts the year-to-date picture. Traders should consider keeping their position sizes modest given the volatility that has defined this group in both directions.
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Shares of former Bitcoin (CRYPTO:BTC) miners pivoting into AI data center and high performance computing hosting have taken a heavy hit over the past month. IREN (NASDAQ:IREN), TeraWulf (NASDAQ:WULF), and Applied Digital (NASDAQ:APLD) are all down more than 30% over the trailing month, and the selling has continued into Wednesday afternoon trading.
IREN stock is down 33% over the past month, TeraWulf shares are down 38%, and Applied Digital shares are off 36%. IREN stock is trading at $31.67 midday, TeraWulf shares changed hands at $16.18, and Applied Digital shares sat at $24.62.
The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) has fared much better, as it’s down 13% over the past month. The gap between the ETF and the individual names is the story.
A Sector-Wide Re-Pricing The decline in IREN, TeraWulf, and Applied Digital shares reflects a broader re-pricing across AI infrastructure and data center names, as capex fatigue, rising financing and credit costs, and a fresh memory and semiconductor rout have all bitten into high-beta plays this month.
These three companies are especially sensitive because each is mid-pivot from bitcoin mining into GPU-powered AI and high-performance computing (HPC) hosting. That transition has been the entire bull thesis for IREN, TeraWulf, and Applied Digital shares, so any cooling in AI-infrastructure enthusiasm hits their valuations harder than it hits diversified data center REITs.
The beta figures confirm the sensitivity. IREN carries a five-year monthly beta of 4.28, and Applied Digital’s beta sits at 5.68 while TeraWulf carries a beta of 4.26. When sentiment turns, these stocks can move multiples of the market.
Valuation and the Debate on More Downside On valuation, IREN stock trades at a TTM (trailing 12-month) P/E ratio of 39.83x, which isn’t unreasonable relative to the group. TeraWulf and Applied Digital have no TTM P/E ratio given their bottom-line losses, so the market is pricing them almost entirely on contracted capacity and forward AI hosting revenue.
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That framing cuts both ways. The bulls argue the trailing declines have already reset momentum and that IREN stock, still up 94% over the past year, and Applied Digital shares, up 139%, remain long-term winners on the AI buildout. The bears counter that with financing costs climbing and hyperscaler capex under scrutiny, high-beta pivot names are the first to get sold when the theme wobbles.
Retail sentiment reflects the pain. Reddit chatter on IREN has migrated to r/WallStreetBets with a “very bearish” tone, and one viral loss post titled “120k > 20k > 120K > 15k on IREN and IRE” has drawn 253 upvotes and 103 comments. That’s capitulation language.
Why the ETF Held Up Better The DTCR ETF’s structure explains the gap. Its top holdings are diversified infrastructure REITs and semiconductor names. Applied Digital is inside this ETF, but only at 3.2% of the fund’s assets.
The Global X Data Center & Digital Infrastructure ETF carries 30 positions with meaningful international exposure through names like NEXTDC and GDS, so a rout in U.S. AI-miner pivots gets diluted. The ETF isn’t leveraged, which matters when the underlying names see daily swings of 10%.
What to Watch Now The key question is whether the AI-infrastructure trade holds bid through earnings season. Investors can watch the DTCR ETF’s relative strength, credit spreads on data center financing, and hyperscaler capex commentary from the mega-cap tech names reporting this week. These are indicators of whether the group finds a floor or takes another leg down.
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The market expects TeraWulf Inc. (WULF - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -300%.
Revenues are expected to be $44.71 million, down 6.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 25% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for TeraWulf?For TeraWulf, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +7.69%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that TeraWulf will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that TeraWulf would post a loss of$0.16 per share when it actually produced a loss of -$0.44, delivering a surprise of -175.00%.
The company has not been able to beat consensus EPS estimates in any of the last four quarters.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
TeraWulf doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerRiot Platforms, Inc. (RIOT - Free Report) , another stock in the Zacks Financial - Miscellaneous Services industry, is expected to report loss per share of $0.39 for the quarter ended June 2026. This estimate points to a year-over-year change of -168.4%. Revenues for the quarter are expected to be $150.47 million, down 1.7% from the year-ago quarter.
The consensus EPS estimate for Riot Platforms, Inc. has been revised 13.7% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -102.56%.
This Earnings ESP, combined with its Zacks Rank #5 (Strong Sell), makes it difficult to conclusively predict that Riot Platforms, Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Shares of Cipher Digital (NASDAQ:CIFR) and TeraWulf (NASDAQ:WULF) are lower Monday afternoon, extending a rough month for bitcoin-miner-turned-AI-infrastructure names. Cipher Digital stock trades at $21.12, off 9%, while TeraWulf stock sits at $17.65, down 4%.
The declines come despite two fresh research reports pointing to price targets above $30, and they cap a stretch of sharp volatility across the neocloud cohort. TeraWulf stock is still up 54% year to date (YTD), and Cipher Digital stock is up 43% YTD, so today’s drop reads as a continuation of a pipeline valuation reset rather than a break in the bull thesis.
Analyst Reports Split on the Group Chardan initiated TeraWulf stock at a Buy rating with a $32 price target, framing the company as a first mover in the shift to AI data center infrastructure with four lease agreements secured and a management team skilled at navigating power-constrained markets. Chardan’s Bill Papanastasiou also initiated Cipher Digital stock at Buy with a $32 target, citing hyperscaler and neo-cloud leases and Cipher Digital’s status as the only operator in its peer group partnered with Amazon (NASDAQ:AMZN | AMZN Price Prediction) Web Services.
Keefe Bruyette raised its Cipher Digital price target to $32 from $27 while keeping Outperform, flagging unallocated Electric Reliability Council of Texas (ERCOT) “Batch Zero” capacity as a possible major value unlock. However, Keefe Bruyette trimmed TeraWulf’s target to $30 from $33, still Outperform, which is a cut, not the hike Cipher Digital received.
Both firms remain positive on high-performance computing (HPC) colocation demand into Q2 2026 miner earnings but selective on funding concerns and model-layer risk from AI-lab tenants, favoring hyperscaler and investment-grade leases across the group. The split reflects a market increasingly rewarding contracted, investment-grade cash flows over speculative AI-lab exposure.
Selloff Spreads Across the Neocloud Cohort IREN Limited (NASDAQ:IREN) stock is down 4% at $35.56, and Applied Digital (NASDAQ:APLD) stock is down 4% at $26.13, extending a month of double-digit drawdowns across the group. Applied Digital shares have slid 33% over the past month, and IREN shares are off by 25% over the same window.
The CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) holds all four names, so the fund captures the theme in one vehicle. It’s a narrow, single-theme product with high beta, and the fund’s concentration means that your exposure can swing hard in either direction. Investors playing the space directly should consider modest position sizes.
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Comparing the 2026 Setups TeraWulf’s setup rests on a 2.3 GW platform, more than $13 billion in contracted revenue, and anchor tenants Core42, Fluidstack, and Alphabet‘s (NASDAQ:GOOGL) Google via credit backstop. CEO Paul Prager described a “power-advantaged platform… increasingly differentiated in a market constrained by access to power”, and a recent $1 billion equity raise funds the Hawesville, Kentucky campus.
Cipher Digital counters with 700 MW of contracted HPC capacity, roughly $11.4 billion in contracted revenue on 10-to-15-year terms, and an AWS lease at Black Pearl worth $5.5 billion over 15 years. A Fluidstack/Google lease at Barber Lake adds another $3.8 billion. CEO Tyler Page called “2026…the year of execution for Cipher.”
The bear case for both stocks is real, though. TeraWulf’s Q1 FY2026 net loss reflected a $216.32 million non-cash warrant revaluation, and Cipher Digital carries about $5.2 billion in total debt, with interest expense that surged to $59.16 million from $777,000 year over year (YoY). Funding capacity and tenant credit quality remain the swing factors between now and Q2.
What to Watch Investors can watch for whether Cipher Digital shares stabilize near $21 and whether TeraWulf stock holds above its 200-day moving average of $17.45. Q2 earnings from the miner cohort in the coming weeks can reset how the market prices contracted HPC revenue against near-term GAAP losses, and either name may retest lower before the setup firms up.
The broader tape is telling investors that pipeline announcements alone no longer clear the bar. What matters now is executed leases with investment-grade counterparties, funded capex, and visible cash-flow ramps into 2027. Both TeraWulf and Cipher Digital have pieces of that story, but the market wants proof rather than promise.
For traders, the setup rewards patience over conviction sizing. Waiting for Q2 prints and any Batch Zero clarity from ERCOT can offer a cleaner entry than buying on a drawdown today.
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EASTON, Md., July 22, 2026 (GLOBE NEWSWIRE) -- TeraWulf Inc. (Nasdaq: WULF) (“TeraWulf” or the “Company”), a leading owner and operator of vertically integrated digital infrastructure, today announced that it will host its earnings conference call and webcast for the second quarter ended June 30, 2026 on Wednesday, August 5, 2026 at 8:00 a.m.
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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Last week, pop star Lorde stood on stage in Madrid and told the stadium full of fans to reject a piece of technology that some of the biggest names in entertainment, including Kylie Jenner and BLACKPINK’s Jennie, had just spent months getting paid to promote.
That tech belongs to Meta Platforms, Inc. (META), its video-recording AI glasses that celebrities are lining up to sell. Normal people, however, are lining up right behind Lorde to call Meta’s glasses “creepy,” “invasive,” and something you actively do not want strapped to your face. Whereas the billionaires and brand partners see the future, the crowd just sees a surveillance device with a massive marketing budget.
That gap, between what insiders build conviction around and what the public feels comfortable owning, is worth remembering, because it speaks to the five cheap AI stocks I want to talk to you about this week.
Every name on this list has dropped double-digits from its highs over the past month, because retail sentiment turned sour on AI infrastructure the same way it turned sour on face computers.
But Wall Street’s actual conviction did not move an inch.
Samsung Electronics Co. Ltd. just reported a preliminary operating profit of roughly 89.4 trillion won, or nearly $60 billion, up 19 times year over year, driven almost entirely by AI memory demand. On the same morning, International Business Machines (IBM) pre-announced a second-quarter revenue miss and watched its shares crater more than 20% (the stock’s worst session since the 1987 crash) after CEO Arvind Krishna revealed that clients spent the final weeks of June pulling capex out of software and consulting deals to panic-buy supply-constrained servers, storage, and memory ahead of expected price hikes.
The selloff spread fast, dragging down Workday (WDAY), ServiceNow (NOW), Salesforce (CRM), and Accenture (ACN) in sympathy. The same shortage minting record profits in Suwon is cannibalizing enterprise tech budgets everywhere else. If Samsung is collecting the ransom, IBM just showed Wall Street who is paying it.
The crowd does not have to love the trade. They just have to eventually notice the earnings.
So, let’s get into five cheap AI stocks to buy this week:
SpaceX Technologies Inc. (SPCX) is, without question, the most argued-about stock in the market. Half of Wall Street treats it as a cult of personality around Elon Musk, and both the bulls and the bears fall into that trap. What actually matters is that SpaceX is the only vertically integrated company on Earth that can combine rocket launch capability, frontier AI models through xAI, and a live, constant data feed from X. Oppenheimer carries a “buy” rating. Goldman Sachs has a “buy” rating with a $205 price target. Morgan Stanley has a “buy” rating with a $300 price target. Revenue estimates jump from $18.6 billion to $38.7 billion this year, then to $74.2 billion in 2027 and $135 billion in 2028. Twenty-one Wall Street firms have already penciled in 2030 estimates, and they cluster around $330 billion in revenue. Put a 10-times revenue multiple on that, which is not unreasonable for a company growing this fast, and you get a $2 trillion to $3 trillion company. At $150 a share, the math works. I recommend the stock here.
TeraWulf Inc. (WULF) used to mine Bitcoin. Now it leases power. The company just signed a 20-year, $19 billion deal with Anthropic for a 401-megawatt AI campus in Kentucky, and that deal validates the entire pivot from crypto miner to AI infrastructure landlord. TeraWulf is not the best-positioned name in that trade, but it is a legitimate one, and the recent selloff across the AI infrastructure complex hands you an attractive entry. Revenue growth estimates run 89% this year, 210% in 2027, then 72% and 56% after that, taking the company from $168 million in trailing revenue toward $3.3 billion within five years. Gross margins expand from 50% to 70% over that stretch. The stock trades at 33.6 times EBITDA, which is remarkably cheap for triple-digit growth with expanding margins. The chart backs the story up, too: every major pullback since the AI infrastructure rally began has bottomed around the 100-day moving average, roughly a 30% drawdown each time. The stock sits at that exact level right now.
Amazon.com, Inc. (AMZN) just tapped the debt market for $25 billion to fund AI infrastructure, and the same week, it launched 29 more low Earth orbit satellites, bringing its total to 396 and putting the company on track to begin broadband service later this year. That confirms the satellite broadband race has moved from concept to commercial deployment, and it confirms SpaceX is no longer racing itself. Amazon trades at 22.6 times forward earnings and 11 times forward EBITDA, both essentially five-year lows, while revenue growth holds steady in the low double digits and margins expand from the mid-20s toward the mid-30s because of Amazon Web Services. A company this large, this dominant, and this cheap, growing profits faster than sales, deserves a buyer on this dip.
Palantir Technologies Inc. (PLTR) got caught in the software selloff investors are calling “SaaSpocalypse,” and shares sit down roughly 26% to 27% from their highs. The stock remains trapped below a declining 200-day moving average, the worst technical setup a growth stock can carry, and I want to see it reclaim 150, and ideally 160, before I turn constructive. But the growth profile underneath that chart is extraordinary: 73% revenue growth expected this year, then 46%, 44%, 52%, and 49% in the years after, alongside 86% to 87% gross margins. The old argument against Palantir was valuation. That argument no longer holds, because the stock trades at 75.5 times forward earnings and 56.5 times forward EBITDA for what could become a 70% to 80% compounder. Once it reclaims that 200-day line, I recommend putting money to work.
Micron Technology Inc. (MU) sits 22% below its highs, and the bears say memory chips have peaked. Samsung’s blowout quarter says otherwise. The real fear is not today’s demand, which everyone agrees is scorching, but demand 6 to 12 months out, once new memory supply comes online. That question gets answered in about three weeks when hyperscalers report earnings and either reaffirm or hike 2026 capital expenditure plans. Micron’s past pullbacks during this cycle have all bottomed in the 20% to 30% drawdown range, and the stock sits at a 22.6% drawdown right now, with support between $800 and $900. This remains my favorite name in the group.
The dip feels the same every time: a beeping satellite, a scary headline, a chart that looks broken. Then the earnings roll in, and the fear turns out to be the entry point.
We break all five of these names down in far greater depth, charts and all, on this episode of Being Exponential.
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.
Access to sufficient computing power has become a major constraint for artificial intelligence systems. This explains why hyperscalers are not just rushing to build their own data centers, but also sealing long-term deals for more compute with neocloud companies like Applied Digital (APLD 7.35%) and TeraWulf (WULF 5.01%).
TeraWulf made the news recently for the 20-year, $19 billion deal it just inked with Anthropic. That agreement covers 401 megawatts of critical IT load, which will become available in waves. The full 401 megawatts should be online by early 2028.
That announcement earned TeraWulf a price target adjustment from Morgan Stanley's analyst, who bumped it to a Street-high $72. That implies that the stock will more than triple from current levels in the next 12 months. It isn't just good news for TeraWulf. It points to broader tailwinds that will also lift Applied Digital.
Image source: Getty Images.
Understanding gigawatt pipelines When a deal like the Anthropic one is announced, it doesn't translate into immediate revenue. Neocloud companies are investing heavily into building AI data centers and have multiple construction projects underway. That's why the full 401 megawatts that the AI giant is contracting for won't be available until early 2028.
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Applied Digital touted in an investor presentation that it has 3 gigawatts of active pipeline projects, while TeraWulf only has 2.3 gigawatts in its portfolio. Securing more gigawatts of electricity to power future data centers increases a company's earnings potential, so Applied Digital has the edge in that regard.
However, anytime a company adds a new data center site, it isn't small. Those sites often have hundreds of megawatts. TeraWulf or Applied Digital can suddenly come out with an announcement saying that they got another AI data center site, which can either close or expand the gap by a meaningful margin. When it comes to the quantity of gigawatts, Applied Digital is currently ahead, and that gives them a higher ceiling.
TeraWulf owns its power Although TeraWulf has fewer AI data centers, it does have an edge over Applied Digital when it comes to power. TeraWulf makes it a point to own its power, while Applied Digital signs long-term electricity supply agreements with utility companies.
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Applied Digital's approach is cheaper right now and lets it complete AI data centers sooner. It also requires its customers to bring their own AI chips and servers, while TeraWulf provides computing hardware in its facilities. These differences make it easier for Applied Digital to realize more revenue at a faster rate, but its business model also makes it dependent on the electric grid. Requiring customers to bring their own hardware also lowers how much Applied Digital can charge for each megawatt of critical IT load.
An overstrained electric grid can cause issues, and when Applied Digital renegotiates utility leases when they expire, the company may have to pay much higher prices. That scenario is especially possible as a growing number of AI data centers will be competing for the same power supply.
TeraWulf develops on-site power generation assets at its data centers. This strategy means it takes a little longer for its data centers to be completed, but it also ensures that TeraWulf won't have to rely on the power grid. It incurs higher costs now for more control over future costs and power availability. In the long run, it is much better to own power generation capacity than to lease it.
The contracts with hyperscalers TeraWulf has 923 megawatts of critical IT load contracted to clients. Anthropic makes up almost half of that total. TeraWulf is aiming to support 250 megawatts to 500 megawatts of additional critical IT load signings per year, which could result in meaningful net operating income growth once the sites are fully developed.
TeraWulf is targeting an 85% net operating income margin on contracts, showing that profits can scale quickly as well.
Applied Digital has 1.41 gigawatts of contracted critical IT load. Once again, Applied Digital has a slight edge, but a single announcement from either of these companies can meaningfully close or expand the gap. For instance, TeraWulf's contracted critical IT load jumped from 522 megawatts to 923 megawatts on a single Anthropic deal.
Applied Digital also signs long-term deals with tech giants. The company recently secured a 15-year take-or-pay lease with an unnamed, high investment-grade hyperscaler that is based in the U.S.
The deal covers 210 megawatts of critical IT load for approximately $5.2 billion over 15 years. The contract's value can reach $12.7 billion if all renewable options are exercised over a 30-year term.
Applied Digital has an edge when it comes to total gigawatts and contracted critical IT load. However, a single deal from TeraWulf could close these gaps. The main advantage of TeraWulf is that it owns its power, which could matter a lot in the years ahead.
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.
TeraWulf is rated BUY for its superior risk-reward profile and significant growth potential in AI data center infrastructure. WULF's capital-heavy model enables advanced, efficient data centers with 1.36GW free capacity and a major $19B, 20-year ANTHRO contract. Despite higher CapEx and net debt, WULF's AI business delivers 88% gross margin and 48% operating margin, outpacing Core Scientific.
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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 (WULF 8.60%), an AI and bitcoin mining infrastructure operator, closed at $20.24, down 8.87%. Premarket Anthropic lease news and a midday pullback kept investors focused on the company’s AI buildout and funding plans.
How the markets moved todayThe S&P 500 (^GSPC 0.45%) fell 0.45% to 7,503.85, while the Nasdaq Composite (^IXIC 1.16%) fell 1.16% to 25,818.69. Among digital infrastructure and bitcoin mining with high-performance computing/AI hosting peers, Cipher Digital (CIFR 5.80%) closed at $20.47, down 5.80%, and CleanSpark (CLSK 7.62%) closed at $12.48, down 7.62%.
What this means for investorsTeraWulf’s decline shifted focus from the scale of its Anthropic lease to the execution needed to generate revenue. The 20-year agreement secures a significant AI infrastructure contract, with approximately $19 billion in expected lease revenue and 401 megawatts of planned critical IT load. Initial service is scheduled for the second half of 2027, with full capacity targeted for early 2028. As a result, investors will now be focusing on construction, power delivery, funding, and project timing.
The Abernathy stake sale introduces a capital allocation perspective. By selling its majority interest in the joint venture, TeraWulf is monetizing an approximately $450 million investment and reallocating capital to directly owned AI infrastructure projects. The key challenge now will be whether the company can convert long-term AI demand into sustainable revenue without increasing additional execution or financing risks.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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.
Shares of TeraWulf (NASDAQ:WULF) are down 8% to $20.41 in Tuesday’s midday session, reversing yesterday’s rally on the Anthropic mega-deal. The drop lands in a broad AI-infrastructure pullback, with the NASDAQ 100 down 1.5% intraday.
The move gives back most of the July 6 pop but leaves TeraWulf stock still up 78% year to date (YTD). Peer names are trading in sympathy: IREN (NASDAQ:IREN) is down 7% to $40.97, Applied Digital (NASDAQ:APLD) is off 6% to $31.56, and Cipher Mining (NASDAQ:CIFR) is down 4% to $20.85.
Analyst Target Hikes Meet Sell-the-News The irony of today’s action is that multiple Wall Street desks raised targets on TeraWulf even as the stock fell. Rosenblatt lifted its target to $30 from $27 (Buy), Needham moved to $33 from $28 (Buy), KBW held Outperform at $33, and Bernstein reiterated Outperform at $36. The consensus analyst target price sits at $36.
The catalyst was TeraWulf’s 20-year, $19 billion Anthropic data-center lease covering 401 megawatts net at the Justified Data campus in Hawesville, Kentucky, with two five-year renewal options and phased delivery starting in the second half of 2027, reaching full capacity by early 2028. The deal pushes TeraWulf’s total AI orderbook to $27 billion across three clients (Anthropic, Core42, and Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction)-backed Fluidstack).
So, why the selloff? KBW flagged that the investment-grade credit support for the lease isn’t yet finalized (it hinges on Anthropic’s choice of hardware vendor, expected within about four months), alongside the Abernathy stake sale and a perceived lack of near-term catalysts. TeraWulf also agreed to sell its 50.1% stake in the Abernathy joint venture to a Fluidstack-led group for $530 million in staged installments. Those overhangs, combined with a risk-off tape, gave traders reason to fade the rally.
AI-Miner Selloff Driven by Equity Risk-Off Today’s pain is an equity risk-off move. Bitcoin (CRYPTO:BTC) is essentially flat over the past 24 hours, up less than 1% to $63,845. The pressure is equity-driven, hitting the same AI-tech complex that dragged on chips, memory, and space names.
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IREN, Applied Digital, and Cipher Mining are all Bitcoin miners pivoting into AI infrastructure, and each has its own hyperscaler contract book. IREN carries an $81 analyst target price, while Applied Digital shares still sit up 29% YTD and Cipher Mining shares are up 42% YTD. These are volatile, largely pre-profit names, and one session doesn’t rewrite the long-term thesis around hyperscaler capex and power-constrained compute.
For investors weighing the group, the bull case rests on the analyst target hikes, TeraWulf’s $19 billion Anthropic lease, and the broader validation of the miner-to-AI pivot. The bear case is the unfinalized credit support, execution risk into 2028, and betas well above the market. Modest position sizing fits the volatility profile here.
What to Watch Traders can watch for whether WULF stock holds above $20 into the close, and whether IREN, APLD, and CIFR follow. The next concrete catalyst may be Anthropic’s hardware-vendor decision, which could unlock the investment-grade credit wrap on the lease.
Beyond the WULF-specific setup, the price action in IREN, APLD, and CIFR will tell investors whether today is a coordinated group pullback or a name-specific reaction to TeraWulf’s contract terms. Watch relative volume in the peers and any follow-on analyst notes on IREN, Applied Digital, and/or Cipher Mining.
Longer term, the miner-to-AI pivot thesis hinges on whether these operators can convert contracted megawatts into investment-grade cash flows. With hyperscaler capex running near $700 billion annually and power the binding constraint, the group retains structural tailwinds. Still, sessions like today are a reminder that execution risk and financing overhangs still matter alongside the headline contract wins.
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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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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.
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 (WULF +4.84%) rose on Monday after the digital infrastructure developer struck a blockbuster deal with leading artificial intelligence (AI) model maker Anthropic.
IREN's (IREN +12.89%) shares were likewise up sharply, on reports that the data center operator could also be about to sign a lucrative computing capacity agreement with the AI giant.
Image source: Getty Images.
Partnering with an AI titan TeraWulf signed a 20-year lease with Anthropic at its Justified Data campus in Kentucky. The project is projected to go online in the second half of 2027 and ramp up to 401 megawatts of computing power by early 2028. The deal is forecast to produce a whopping $19 billion in contracted revenue.
"The Anthropic lease validates our strategy and establishes a long-duration revenue stream with one of the world's leading AI companies," TeraWulf CEO Paul Prager said in a press release.
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TeraWulf also agreed to sell its 50.1% stake in its Abernathy Joint Venture to an investor group led by its development partner Fluidstack. The deal will generate a profit on its $450 million investment and free up cash for TeraWulf to deploy into more lucrative AI infrastructure projects.
More deals are on the horizon News also broke that Anthropic was seeking computing resources in Australia. The AI leader reportedly wants to secure at least 1.4 gigawatts of data center capacity in a deal that could be valued at up to $15 billion.
IREN is believed to be a leading candidate for at least a portion of this lucrative AI infrastructure project.
Freedom Capital Markets analyst Paul Meeks, in turn, upgraded IREN's stock from hold to buy and reiterated his $58 share price target. Meeks sees IREN's revenue surging from $717 million this year to $8.5 billion in fiscal 2028.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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.
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TeraWulf (WULF +4.84%), a Bitcoin (BTC +2.05%) mining and AI data center infrastructure provider, closed at $22.21, up 4.86%. The company announced a lease to Anthropic and a joint-venture data center sale that could unlock long-term AI infrastructure revenue.
Trading volume reached 73.3 million shares, coming in about 135% above its three-month average of 31.2 million shares.
How the markets moved todayThe S&P 500 (^GSPC +0.72%) rose 0.74% to 7,538, while the Nasdaq Composite (^IXIC +1.12%) climbed 1.12% to 26,121. Among bitcoin mining and AI/high-performance computing (HPC) digital infrastructure peers, Cipher Digital (CIFR +7.98%) gained 8.43% to $21.73, and IREN (IREN +12.89%) rose 13.11% to $43.91 as investors kept watching AI-data-center monetization.
What this means for investorsTeraWulf has been progressing as it transitions from Bitcoin mining to a recurring revenue HPC business model. Its latest acquisition was made in late May when the company acquired a large data center development site in Eastern Kentucky. Today, the company announced a long-term lease agreement for another HPC site in Hawesville, Kentucky.
The least to AI research company Anthropic will run for 20 years and is expected to generate about $19 billion of contracted revenue. Separately, TeraWulf entered an agreement to sell its 50.1% stake in a Texas data center. The company said it will receive about $530 million for its original $450 million investment.
That capital, along with recurring lease income, will help the company expand its long-term cash flow. Investors are now cheering the success of TeraWulf’s AI business model, and there could be more to come.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
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.
