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Terawulf Inc. (WULF)
:WULF
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TeraWulf Inc
(NASDAQ:WULF)
41Neutral
Positive Factors
Financial Projections
Model updates reflect an increase in BTC price assumptions, leading to a projected 15% increase in total revenue for FY25.
Lease Agreement
WULF signed a 70 MW long-term lease agreement with Core42, aligning with HPC revenue estimates.
Revenue and Profit Margins
Revenue begins at ~$1.5M/MW (per year) with ~70% profit margins.
Negative Factors
Adjusted EBITDA
Adjusted EBITDA estimates have been lowered.
Facility Expansion
If the agreement for the HPC/AI facility is just for 72.5MW, shares could experience a sell the news event.
Mining Output
WULF mined 115 BTC in November, down 23% m/m due to planned outages affecting ~5.3 EH/s.
TeraWulf Inc (WULF) vs. S&P 500 (SPY)
Market Cap
$1.23B
Dividend YieldN/A
Average Volume (3M)41.38M
Price to Earnings (P/E)―
Beta (1Y)3.49
Revenue Growth102.30%
EPS Growth45.44%
CountryUS
Employees12
SectorFinancial
Sector Strength85
IndustryCapital Markets
Share Statistics
EPS (TTM)-0.20
Shares Outstanding383,137,730
10 Day Avg. Volume35,910,044
30 Day Avg. Volume41,380,508
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.75
Price to Cash Flow (P/CF)-7.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.29Price Target Upside190.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
TeraWulf Inc Business Overview & Revenue Model
Company DescriptionTeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. It develops, owns, and operates bitcoin mining facility sites. The company operates two bitcoin mining facility sites located in New York and Pennsylvania. TeraWulf Inc. is based in Easton, Maryland.
How the Company Makes MoneyTeraWulf Inc generates revenue primarily through the mining of Bitcoin. The company's revenue model is centered on the operation of its mining facilities, where it uses powerful computing systems to solve complex mathematical problems that validate Bitcoin transactions and secure the blockchain network. In return for these efforts, TeraWulf earns Bitcoin as a reward. The profitability of this operation is influenced by factors such as the market price of Bitcoin, the cost of electricity, and the efficiency of their mining technology. Additionally, TeraWulf's focus on using renewable energy sources can potentially lower operational costs and improve margins. The company may also engage in strategic partnerships and collaborations to enhance its mining capabilities and expand its market presence.
TeraWulf Inc Financial Statement Overview
Summary
TeraWulf Inc. exhibits strong revenue growth, yet struggles with profitability and cash flow management. The increased leverage and negative cash flow ratios highlight financial instability, posing risks for future operations if profitability and cash generation do not improve.Income Statement
TeraWulf Inc. shows significant revenue growth with a 102% increase from 2023 to 2024, indicating strong sales performance. However, the company's profitability is concerning, as both EBIT and Net Income are negative, leading to poor EBIT and net profit margins. The consistent net losses over the years highlight ongoing profitability challenges.35
Negative
Balance Sheet
The company's debt-to-equity ratio has increased, indicating rising leverage which could pose financial risk. However, stockholders' equity has grown, contributing to a stable equity ratio. The high total debt relative to equity remains a concern, reflecting financial vulnerability in adverse conditions.45
Neutral
Cash Flow
Operating cash flow has turned negative in 2024, reversing from a positive position in 2023, indicating operational challenges. Free cash flow is also negative, suggesting cash constraints. The absence of growth in free cash flow and the negative cash flow ratios present concerns about liquidity and cash management.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 140.05M | 69.23M | 15.03M | 12.74M | 17.62M | Gross Profit |
| 77.44M | 41.91M | 3.95M | 12.69M | 5.40M | EBIT |
| -72.42M | -29.42M | -42.29M | -43.40M | -863.68K | EBITDA |
| -72.42M | 161.00K | -38.83M | -43.35M | -223.63K | Net Income Common Stockholders |
| -72.42M | -73.42M | -70.22M | -95.68M | -813.56K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 274.06M | 54.44M | 1.28M | 46.45M | 3.17M | Total Assets |
| 787.51M | 378.11M | 317.69M | 264.91M | 16.88M | Total Debt |
| 491.25M | 124.47M | 129.31M | 95.71M | 2.82M | Net Debt |
| 217.18M | 70.03M | 128.03M | 49.25M | 1.86M | Total Liabilities |
| 543.07M | 155.62M | 199.93M | 141.73M | 4.62M | Stockholders Equity |
| 244.44M | 222.49M | 117.75M | 123.18M | 12.26M |
| Cash Flow | Free Cash Flow | |||
| -24.42M | -70.91M | -106.92M | -133.17M | -975.05K | Operating Cash Flow |
| -24.42M | 4.26M | -34.07M | -24.10M | -477.03K | Investing Cash Flow |
| -91.16M | -78.01M | -94.05M | -201.41M | 7.58K | Financing Cash Flow |
| 335.21M | 119.87M | 89.98M | 271.97M | -190.03K |
TeraWulf Inc Technical Analysis
Negative
3.20
Price Trends
4.50
Negative
5.74
Negative
5.11
Negative
Market Momentum
-0.40
Negative
40.58
Neutral
57.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WULF, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 3.43, below the 50-day MA of 4.50, and below the 200-day MA of 5.11, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 57.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WULF.
TeraWulf Inc Risk Analysis
TeraWulf Inc disclosed 47 risk factors in its most recent earnings report. TeraWulf Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TeraWulf Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $14.33B | 10.14 | 8.73% | 4.25% | 17.15% | -12.05% | |
63 Neutral | $2.78B | 23.08 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.28B | 9.02 | 18.84% | ― | 69.38% | 30.30% | |
49 Neutral | C$1.92B | 3.96 | 2.56% | ― | 199.41% | ― | |
41 Neutral | $1.23B | ― | -31.02% | ― | 102.30% | 45.44% | |
37 Underperform | $27.10M | ― | 242.25% | ― | ― | ― |
* Financial Sector Average
Performance Comparison
WULF
TeraWulf Inc
3.20
0.63
24.51%
RIOT
Riot Platforms
7.95
-4.49
-36.09%
MARA
Marathon Digital Holdings
12.38
-8.57
-40.91%
TSE:HUT
Hut 8
18.51
5.72
44.72%
BITF
Bitfarms
1.01
-1.28
-55.90%
ARBK
Argo Blockchain
0.38
-1.25
-76.69%
TeraWulf Inc Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -11.36% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strategic advancements in HPC hosting, offset by challenges in Bitcoin mining volume and increased operational costs. While the company achieved notable financial and strategic milestones, increased expenses and operational challenges present areas for caution.Highlights
Record Revenue Growth
GAAP revenues increased 102% year-over-year from $69.2 million in 2023 to $140.1 million in 2024.
Successful Bitcoin Mining Operations
Self-mined 2,728 Bitcoin in 2024, with a hash rate increase to 13.1 exahash per second upon full deployment of new miners.
Strategic Sale of Nautilus Cryptomine
The sale delivered a 3.4 times return on investment, freeing up capital for HPC hosting development.
HPC Hosting Expansion with Core42
Signed a 10-year 72.5 megawatt data center lease agreement with Core42, expected to generate over $1 billion in revenue.
Balance Sheet Optimization
Paid off term loan, raised $500 million through convertible offering, and executed stock buybacks totaling $150 million.
Lowlights
Decrease in Bitcoin Mined
Mined 2,728 Bitcoin in 2024 compared to 3,343 Bitcoin in 2023, a decline attributed to network difficulty and strategic changes.
Increased Operating Expenses
Operating expenses increased 69% quarter-over-quarter from $1.6 million in 3Q '24 to $2.7 million in 4Q '24.
Higher Power Costs
Realized power price increased to $0.059 per kilowatt hour in 4Q '24, contributing to higher cost of revenue.
Loss on Disposal of Property, Plant, and Equipment
Recorded a loss of $17.5 million in 4Q '24 related to disposals of miners and write-off of deposits.
Company Guidance
During the TeraWulf 2024 Fourth Quarter and Year-End Earnings Call, significant guidance was provided, focusing on the company's strategic achievements and future plans. TeraWulf doubled its revenue and adjusted EBITDA year-over-year, fueled by a higher Bitcoin production and favorable pricing, reaching a hash rate of 9.7 exahash per second with around 60,000 miners. The firm anticipates increasing its hash rate to 13.1 exahash per second and achieving fleet efficiency of 18.2 joules per terahash upon full deployment of its new S21 Pro miners. A pivotal development was the sale of the Nautilus Cryptomine joint venture, which yielded a 3.4 times return on investment and facilitated capital reallocation for their HPC hosting business expansion. TeraWulf's 10-year data center lease with Core42 is projected to generate over $1 billion in revenue, averaging $100 million annually. The company aims to contract 100 to 150 megawatts of HPC hosting capacity annually over the next three years, with particular attention to site acquisitions that meet stringent energy infrastructure criteria. Financially, TeraWulf ended the year with $274 million in cash, total assets of $787 million, and total liabilities of $543 million, setting a solid foundation for 2025 objectives, including energizing Miner Building 5, executing the Core42 agreement, and securing project financing for their HPC data center.TeraWulf Inc Corporate Events
Private Placements and FinancingStock BuybackBusiness Operations and StrategyFinancial Disclosures
TeraWulf Inc. Reports Strong 2024 Financial Results
Positive
Feb 28, 2025
On February 28, 2025, TeraWulf Inc. announced its financial results for the fourth quarter and full year 2024, highlighting a strategic expansion into AI-driven HPC hosting. The company reported a 102% increase in annual revenue and an 89% rise in non-GAAP adjusted EBITDA year-over-year, alongside a significant expansion in self-mining capacity. TeraWulf strengthened its balance sheet by eliminating legacy term loan debt and financing growth with new convertible notes. The company also authorized a $200 million share repurchase program, executing over $150 million in repurchases. TeraWulf’s expansion into HPC hosting is marked by long-term data center leases expected to generate $1 billion in revenue over ten years, positioning the company to scale its services and meet growing demand for AI-driven compute infrastructure.
Business Operations and StrategyFinancial Disclosures
TeraWulf Inc. Boosts Mining Capacity and Revenue Potential
Positive
Jan 3, 2025
TeraWulf Inc. announced a significant update in its December 2024 production and operations, highlighting a 94% year-over-year increase in self-mining capacity to 9.7 EH/s and earning 158 self-mined bitcoin for the month. The company has secured high-performance computing data center leases with Core42, representing over $1 billion in potential revenue over a 10-year term, marking a strategic entry into HPC hosting and underscoring demand for its sustainable digital infrastructure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.