TeraWulf Price Forecast Cut As Analyst Cites Tough Bitcoin Economics, Doubts Over AI Growth Plans
Rosenblatt Securities analyst Chris Brendler maintained TeraWulf (NASDAQ:WULF) with a Buy and lowered the price target from $10 to $4 on Wednesday.
TeraWulf fits perfectly into Brendler’s Bitcoin mining investment thesis with low power costs, an efficient fleet and a strong balance sheet. Even better, it is one of only three miners to actually sign an HPC deal. Yet the stock has underperformed peers in the recent sell-off due to concerns about its ability to execute and sector-wide worries about the size of the AI opportunity.
Also Read: Analyst Warns Tariffs Could Push US Bitcoin Mining Build Costs 20% Higher
Brendler is bullish on both and expects TeraWulf stock to revalue as it powers up Phase 1 later this year and signs additional deals to scale the business.
At the same time, however, Bitcoin mining profitability has dropped dramatically, and current market conditions make it tough to be optimistic about new HPC capital commitments.
Fortunately, the analyst noted that the stock is discounting a lot down here, and TeraWulf should have to execute for it to revalue.
Of all the mining startups that launched in the 2021 bull market, TeraWulf arguably had the most power expertise.
Founded by CEO Paul Prager, TeraWulf’s executive team has had decades of success in developing, acquiring, and managing power generation facilities at Beowulf Energy, where Prager is still CEO. Over its 30-plus year history, Beowulf has become known for expertise in managing large-scale energy assets and integrating cutting-edge technologies into traditional energy systems. With this deep power experience, TeraWulf’s …
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