TeraWulf Inc. (WULF): A Bull Case Theory

We came across a bullish thesis on TeraWulf Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on WULF. TeraWulf Inc.'s share was trading at $11.35 as of September 17th. WULF’s forward P/E was 29.76 according to Yahoo Finance.

WULF represents a tangible pivot from cryptocurrency mining to becoming a specialized AI infrastructure landlord, leveraging its power-rich industrial campuses in upstate New York. These sites, originally built for bitcoin mining, offer precisely what AI workloads demand: abundant, low-cost electricity, heavy-duty cooling, and reliable grid access.

The company is converting its facilities into liquid-cooled, high-density data centers, where customers bring their own GPUs while WULF provides power, cooling, security, and operations, charging multi-year rent per megawatt with annual escalators. This model shifts WULF from volatile mining revenues to predictable, recurring income, creating a clear path toward positive EBITDA and cash flow once the ramp-up schedule is executed.

WULF already has signed tenants, including Core42 and Fluidstack, with first rooms billing in 2025 and a major ramp expected through 2026. A second campus at Cayuga adds optionality for long-term growth. At full run-rate, the leased AI infrastructure could generate roughly $630 million in annual revenue, with site-level margins of 80–85%, positioning the company for substantial profitability. Execution is critical: timely commissioning, customer acceptance, and cash build will determine the trajectory, while existing converts and warrants create potential dilution that diminishes as cash inflows improve.

The stock currently trades above key moving averages, with technical momentum supporting further upside to $12–13 near term and $15–16 if the growth cadence holds. Key risks include construction delays, financing mix, and ramp timing. Investors should monitor delivered and billing megawatts, EBITDA/CFO inflection, and balance sheet stabilization. WULF’s thesis is simple: turn on the rooms, turn on the rent, and transform from a small-scale miner into a scarce, high-value AI real estate operator with recurring, predictable cash flows. Execution over 2026 is the catalyst for re-rating and long-term value creation.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s pivot from Bitcoin mining to AI and digital infrastructure, high-margin GPU operations, scalable power capacity, and disciplined balance sheet. The company's stock price has appreciated approximately by 315% since our coverage. The thesis still stands as IREN’s hybrid AI/crypto optionality remains compelling. Investing With Purpose shares a similar thesis for TeraWulf Inc., emphasizing the shift from mining to AI infrastructure and recurring rental income from liquid-cooled data centers.

TeraWulf Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held WULF at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of WULF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.