Bitcoin Miner TeraWulf’s Stock Can Rally Almost 160%, Says Analyst

B. Riley initiated the environmentally sustainable miner’s stock with a buy rating and a 12-month price target of $24.

Mar 25, 2022 at 1:39 p.m. UTC

Updated May 11, 2023 at 7:15 p.m. UTC

Cables inside a draw housing graphics processing units (GPU) used to mine the Ethereum and Zilliqa cryptocurrencies at the Evobits crypto farm in Cluj-Napoca, Romania, on Wednesday, Jan. 22, 2020. The world’s second-most-valuable cryptocurrency, Ethereum, rallied 75% this year, outpacing its larger rival Bitcoin. Photographer: Akos Stiller/Bloomberg

Bitcoin (BTC) miner TeraWulf (WULF) is “leading the pack in sustainable mining” and its stock continues to trade at a large discount versus its peers, Wall Street investment bank B. Riley said in a research note issued Thursday after the market close.

“While many other miners aim for carbon neutrality, TeraWulf is entering the space using zero-carbon resources from the start,” wrote analyst Lucas Pipes about the company, which went public in December and is backed by celebrities such as actress Gwyneth Paltrow.
Pipes, who is the only analyst covering the stock, according to FactSet data, initiated coverage of TeraWulf with a buy rating and 12-month price target of $24 per share, implying 159% upside from Thursday’s closing price of $9.28.
On Thursday, shares of TeraWulf were up 11.7% and they were rising roughly 6% in early trading on Friday. The stock has fallen about 36% this year, underperforming the mining-heavy Viridi Cleaner Energy Crypto-Mining & Semiconductor exchange-traded fund (RIGZ), which was down 17%.
The miner is using 100% zero-carbon nuclear energy at its Nautilus Cryptomine facility in Pennsylvania and at its Lake Mariner site in upstate New York. The company is using power from the grid through a deal with the New York Power Authority, whose mix is 90% carbon-free primarily using hydropower, Pipes said.
Pipes also noted TeraWulf has an experienced management team that has worked in energy infrastructure and power management, and cited the miner’s joint venture deal with Talen Energy which enables the company to lock-in longer-term power contracts.
On March 17, TeraWulf said it sees itself reaching a hashrate range of 4.7 to 5.1 exahash per second (EH/s) by the end of 2022 and 23 EH/s of mining capacity by 2025.

Unmute

RFK Jr. Says He's 'Fully Committed' to Bitcoin; Jersey City to Invest in Bitcoin ETFs

00:57

What Do EigenLayer's Outflows of $2.3B Signal?

04:20

What Do TradFi Crypto Moves Mean for Decentralization?

02:02

Marathon Digital Buys $100M BTC; India's Special Task Force for Crypto-Related Drug Trafficking

00:53

Ether Slides as Grayscale's ETHE Outflows Ramp Up

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.