TeraWulf Inc. (WULF): A Bull Case Theory

We came crossed a bullish thesis connected TeraWulf Inc. connected The Analyst's Journal’s Substack by A_Capital. In this article, we volition summarize the bulls’ thesis connected WULF. TeraWulf Inc.'s stock was trading astatine $13.79 arsenic of January 26th. WULF’s guardant P/E was 29.76 according to Yahoo Finance.

TeraWulf Inc., unneurotic with its subsidiaries, operates arsenic a integer plus exertion institution successful the United States. WULF represents a highly speculative but perchance transformational accidental astatine the intersection of AI infrastructure scarcity, powerfulness constraints, and the evolving integer plus economy. Formerly a pure-play bitcoin miner, the institution has pivoted toward high-performance computing and AI information centre infrastructure, leveraging scarce, already-interconnected powerfulness assets to bypass the 5–10 year grid queues that constrain astir competitors.

With $6.7 cardinal of contracted HPC revenue—potentially expanding to $16 cardinal done extensions—594 MW nether semipermanent leases, and a $3.2 cardinal fiscal backstop alongside a 14% equity involvement from Google, TeraWulf is positioned arsenic 1 of the fewer platforms susceptible of delivering large-scale AI capableness successful the captious 2026–2027 window. Q3 2025 marked an operational inflection, with the archetypal meaningful HPC lease revenue, 84% year-over-year growth, and affirmative adjusted EBITDA validating the dual bitcoin/HPC strategy.

The upside lawsuit rests connected flawless execution arsenic the institution scales from 22.5 MW of energized HPC capableness to astir 600 MW wrong 2 years, driving a premix displacement toward 70–85% borderline HPC revenues and materially improving currency travel visibility. However, the risks are substantial.

TeraWulf faces utmost execution complexity, dense lawsuit attraction around Fluidstack and Google, disputed zero-carbon claims that could impair hyperscaler relationships, and assertive leverage that virtually guarantees further dilution, with afloat diluted shares perchance rising 30% by 2027. Valuation already reflects optimistic assumptions, leaving small country for delays oregon outgo overruns, portion near-term currency flows stay meaningfully exposed to bitcoin terms volatility.

In sum, TeraWulf offers asymmetric upside tied to AI infrastructure scarcity, but with binary execution risk. The banal is champion suited for high-risk maturation portfolios consenting to tolerate terrible volatility, dilution, and drawdowns successful speech for the anticipation of outsized semipermanent returns if the HPC translation succeeds.

Previously, we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted the company’s modulation from Bitcoin mining to AI infrastructure, leveraging renewable-powered data centers, zero debt, beardown currency flow, and aboriginal AI partnerships to perchance execute a 10x valuation. IREN’s banal terms has appreciated by astir 474.12% since our coverage. A_Capital shares a akin position but emphasizes TeraWulf’s scale, Google backing, and HPC gross contracts.