TeraWulf Inc. (WULF): A Bull Case Theory

We came across a bullish thesis on TeraWulf Inc. on Value investing subreddit by Puzzleheaded_Try6722. In this article, we will summarize the bulls’ thesis on WULF. TeraWulf Inc.'s share was trading at $15.30 as of December 1st. WULF’s forward P/E was 29.76 according to Yahoo Finance.

TeraWulf (WULF) is evolving from one of the greenest Bitcoin miners into a vertically integrated data center and AI infrastructure provider. The company leverages zero-carbon energy sources—nuclear and hydro—to power both its Bitcoin mining operations and its expanding high-performance computing (HPC) hosting business. While self-mining remains WULF’s legacy segment, contributing scale and proof-of-concept for its power assets, its future growth is anchored in long-term, high-margin HPC contracts.

The company has secured over $7.7 billion in contracted revenue, including a $1 billion deal with Core42 and a $6.7 billion Fluidstack/Google agreement covering more than 360 MW of IT load, backed by Google’s $3.2 billion financial guarantee in exchange for 14% equity warrants. Additionally, the Cayuga site, secured under an 80-year ground lease, adds 400 MW of capacity potential, bringing WULF’s total digital infrastructure platform above 1 GW.

The Google-backed contract validates WULF’s engineering and energy capabilities, supporting 85% site-level NOI margins and positioning it as a key green compute provider in the AI economy. Despite higher power costs ($0.078/kWh) relative to peers, WULF’s vertically integrated energy model enables premium pricing and predictable cash flows insulated from Bitcoin volatility.

Financially, Q2 2025 results showed a sharp turnaround, with $47.6 million in revenue and $14.5 million in adjusted EBITDA, supported by cost optimization and power normalization. Looking ahead, the company plans to raise $3 billion in debt, advised by Morgan Stanley, to fund its AI infrastructure expansion—potentially transforming WULF from a volatile crypto miner into a stable, high-margin AI data center operator.

Previously we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted its shift from Bitcoin mining to renewable energy–driven AI infrastructure with strong profitability and zero debt. The stock has appreciated approximately by 431.68% since our coverage as the hybrid AI-crypto thesis played out. Puzzleheaded_Try6722 shares a similar view but emphasizes TeraWulf’s zero-carbon, vertically integrated data center model.

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.