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.

AccessTimeIconMar 25, 2022 at 1:39 p.m. UTC
Updated May 11, 2023 at 7:15 p.m. UTC

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.
  • Candy Digital Co-Founder on Building the Rails for Future Digital Engagement
    00:58
    Candy Digital Co-Founder on Building the Rails for Future Digital Engagement
  • U.S. House Fails to Overturn Biden’s Veto; Staked Ether Close to All-Time High
    02:00
    U.S. House Fails to Overturn Biden’s Veto; Staked Ether Close to All-Time High
  • U.S. Spot Bitcoin ETF Flows Drop in Q2: Kaiko
    00:47
    U.S. Spot Bitcoin ETF Flows Drop in Q2: Kaiko
  • What's the Biggest Problem With Play-to-Earn Model?
    00:47
    What's the Biggest Problem With Play-to-Earn Model?
  • 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.

    Aoyon Ashraf

    Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets