WULF Stock Roars 40% on BTC Price Rebound and Morgan Stanley Upgrade of TeraWulf
TeraWulf shares surged to start the week as an analyst upgrade and Bitcoin’s rebound restored confidence, though risks tied to volatility...
Quick overview
- TeraWulf shares surged approximately 40% over two trading days, driven by Bitcoin's rebound and an analyst upgrade from Morgan Stanley.
- Morgan Stanley initiated coverage with an Overweight rating and a $37 price target, highlighting TeraWulf's long-term infrastructure potential despite current profitability challenges.
- The company's third-quarter earnings showed an 87% year-over-year revenue increase, but profitability remains elusive due to volatility in Bitcoin prices and operational costs.
- Management emphasizes strategic partnerships and diversification efforts to reduce reliance on Bitcoin mining revenues, while cautioning investors about ongoing risks.
TeraWulf shares surged to start the week as an analyst upgrade and Bitcoin’s rebound restored confidence, though risks tied to volatility and profitability remain firmly in focus.
Market Recovery Lifts WULF Stock
TeraWulf Inc. (NASDAQ: WULF) ended last week on a positive note and began the new week with strong upside momentum, rallying roughly 40% over the past two trading days. The rebound follows a sharp pullback earlier in the week, when shares slid nearly 25% from above $16 to a low near $11.85 as Bitcoin weakened and broader risk sentiment deteriorated.
As Bitcoin stabilized and found support around the $60,000 level, sentiment across crypto-linked equities improved. WULF tracked that recovery closely, reclaiming a portion of last week’s losses and signaling that investor confidence may be returning, at least in the near term.
The speed of the rebound highlights how sensitive the stock remains to moves in the underlying digital asset market.
Analyst Upgrade Acts as a Catalyst
A key driver of the rally was Morgan Stanley’s initiation of coverage on TeraWulf with an Overweight rating and a $37.00 price target. Shares closed Monday at $16.65, leaving substantial implied upside relative to the firm’s valuation.
WULF chart Weekly – The 20 SMA Is Supporting the Price
Morgan Stanley pointed to TeraWulf’s strong record of securing long-term data center agreements and emphasized management’s experience in developing large-scale power infrastructure. The bank acknowledged the company’s current lack of profitability—TeraWulf reported a trailing twelve-month loss of $1.44 per share—but framed the business as a longer-term infrastructure play rather than a pure Bitcoin mining story.
The analysts also applied a “REIT endgame” valuation framework to TeraWulf’s Bitcoin-to-data-center conversion projects, estimating a present value of roughly $8 per watt for sites that have yet to be fully contracted.
Earnings Show Growth, but Challenges Persist
TeraWulf’s third-quarter earnings, released in November, provided some fundamental support during a volatile period. The company reported $50.6 million in revenue, representing an 87% year-over-year increase, driven by higher Bitcoin prices and expanded operations.
While Bitcoin production declined during the quarter, this was more than offset by a significantly higher average BTC price, which boosted digital asset revenue. In addition, the launch of TeraWulf’s high-performance computing (HPC) leasing business introduced a new revenue stream that could help smooth earnings over time.
That said, profitability remains elusive, and margins continue to be exposed to fluctuations in Bitcoin prices, energy costs, and network difficulty.
Management Emphasizes Execution and Partnerships
CEO Paul Prager described recent quarters as “remarkably busy,” highlighting accelerated partnerships with companies such as Fluidstack and Google. According to management, these agreements reflect growing trust from major technology partners and validate the scalability of TeraWulf’s infrastructure platform.
Prager stressed that the company is focused on disciplined execution, with growth initiatives extending through 2027 and beyond. The emphasis on partnerships and diversification suggests an effort to reduce reliance on pure Bitcoin mining revenues over time.
Revenue Breakdown Reflects Strategic Expansion
Of the total $50.6 million in revenue:
- $43.4 million came from digital asset mining
- The remainder was primarily driven by new HPC leasing revenue
- Higher BTC prices offset lower mining volume
- Expanded mining capacity supported stronger year-over-year performance
This diversification positions TeraWulf to benefit not only from Bitcoin cycles but also from high-growth computing markets such as AI, cloud infrastructure, and data-intensive enterprise workloads.
Outlook: Momentum Builds, but Risk Remains
With Bitcoin stabilizing and analyst sentiment turning more constructive, TeraWulf enters the coming weeks with renewed momentum. Improving mining economics and early traction in HPC leasing provide a stronger operational foundation than in previous cycles.
However, investors should remain cautious. The stock remains highly volatile, profitability is still negative, and future performance is closely tied to Bitcoin price action and execution on long-term infrastructure projects. While the rebound is notable, sustained upside will likely require continued strength in digital assets and clearer progress toward durable cash flow generation.
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