WULF
From Bitcoin miner to AI landlord
TeraWulf is trying to pull off one of the market's favorite plot twists: ditch the old identity and become the cool new thing. Bernstein says the company is now looking more like a "power landlord of AI" than a crypto miner, and its latest quarter is the evidence.
The big tell? TeraWulf pulled in $32 million in high-performance computing revenue in Q2, which was 71% of total revenue. That's not a side hustle anymore — that's the business getting a makeover in real time.
Why Bernstein is still pounding the table
Bernstein kept its Outperform rating and $36 price target, which implies roughly 100% upside from where the stock has been hanging out. The firm says TeraWulf's expanding contracted backlog and its amended Fluidstack lease are helping validate the AI-infrastructure thesis.
A few numbers doing the heavy lifting:
- More than $1.8 billion in average annual revenue expected from the backlog
- Over $1.5 billion in annual net operating income projected
- Fluidstack lease value increased by about $300 million to $7.2 billion over 10 years
The fine print: this isn't free money
Of course, the AI boom doesn't come with a fairy godmother. Bernstein also flagged rising construction costs, now estimating $10 million to $12 million per IT megawatt versus an earlier $8 million to $10 million range. Translation: building the future is expensive, even when everyone’s shouting about GPUs.
The firm also pointed to customer concentration risk, since TeraWulf is leaning on a small handful of hyperscale AI clients. And yes, the company still has Bitcoin mining in the mix for now — but Bernstein thinks that side of the house gets phased out by 2028.
The big picture
TeraWulf is basically trying to become the landlord of the AI gold rush, and Bernstein thinks that story is getting more believable by the quarter. For investors, the question is no longer just "can they mine Bitcoin efficiently?" It's "can they keep landing AI tenants and build fast enough without blowing out costs?"