Monday, Rosenblatt Securities reaffirmed its positive stance on Terawulf Inc. (NASDAQ:WULF) shares, maintaining a Buy rating and a price target of $10.00. The firm's analysts highlighted TeraWulf's significant progress in its December 2024 production update, noting the company's self-mining of 158 Bitcoin, which contributed to an annual total of 2,728 Bitcoin.
According to InvestingPro data, the company has demonstrated remarkable growth, with revenue surging 131% in the last twelve months and analysts projecting continued sales growth this year. This production achievement marks a substantial year-over-year growth in installed self-mining capacity, reaching 9.7 EH/s, a 94% increase compared to the previous year.
TeraWulf has also advanced in its infrastructure development, securing data center leases for over 70 megawatts (MW) with Core42. This strategic move is anticipated to generate more than $1 billion in potential revenue over the next decade. Furthermore, the company is in active discussions to expand its capacity by an additional 178 MW at its Lake Mariner facility.
With a market capitalization of $2.08 billion and a healthy gross profit margin of 59.55%, TeraWulf shows promising operational efficiency. For deeper insights into TeraWulf's financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and 12 additional ProTips.
The construction of TeraWulf's 50 MW miner building 5 is proceeding as planned, with expectations for completion in mid-Q1 2025. Rosenblatt's analysts underscored the company's competitive edge, citing its efficient power costs, which averaged $62,805 per Bitcoin mined. The firm also commended TeraWulf's commitment to sustainability, as the company leverages predominantly zero-carbon energy in its operations.
Rosenblatt's price target is anchored on an upwardly revised 2025 Adjusted EBITDA estimate, applying a multiple of 20x to arrive at the $10.00 valuation. The firm's assessment reflects confidence in TeraWulf's growth trajectory and its position as a leader in sustainable digital infrastructure.
In other recent news, TeraWulf Inc. has announced a partnership with Core42, aiming to enhance its technological capabilities and expand its service offerings. This strategic move signifies TeraWulf's commitment to integrating advanced technology in artificial intelligence and cloud services. The company also secured long-term data center lease agreements with Core42, planning to provide over 70 megawatts of data center infrastructure at its Lake Mariner facility.
TeraWulf has reported significant progress at its Lake Mariner facility, including substantial electrical infrastructure upgrades and an operational self-mining capacity of 8.4 EH/s. Despite a 24% decrease in revenues to $27.1 million and a 21% decrease in Bitcoin mining in Q3, TeraWulf raised $500 million through a convertible bond offering and initiated a $115 million share repurchase program.
In other developments, Sean Farrell has been promoted to Chief Operating Officer at TeraWulf. Analyst firms, including Rosenblatt Securities, Cantor Fitzgerald, and Needham, have maintained positive ratings on TeraWulf, adjusting their price targets for the company's shares. These recent developments reflect TeraWulf's strategic focus on expanding their operations in the dynamic digital mining industry.
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