TeraWulf Stock Slides Ahead of Q3 Earnings

Shares of TeraWulf Inc. (NASDAQ:WULF) fell about 14% on Thursday, extending Wednesday’s 6.6% decline, as Bitcoin slid and investors sold off crypto-linked and AI data center stocks after the midterm elections. The company reports third-quarter results before the market opens Friday.

Crypto and AI Data Center Stocks Sell Off After Midterms

Sherrod Brown, a longtime crypto skeptic, will return to the Senate after winning Ohio’s race. Crypto-backed political action committees had spent more than $60 million trying to defeat him. Investors appear to be reassessing the outlook for crypto legislation, and shares of crypto-linked companies are falling with Bitcoin.

The selloff also hit companies building AI data centers, as investors weighed tougher scrutiny of data center development under a Democratic-controlled Congress. TeraWulf peers IREN Ltd., Applied Digital Corp. and Cipher Digital Inc. were each down significantly on Thursday.

Google-Backed Financing and Fluor Construction Deal

On Wednesday, TeraWulf said it executed credit support agreements with Google for debt financing supporting about $19 billion of contracted lease commitments with Anthropic at its Hawesville, Kentucky campus. It also signed a definitive agreement with Fluor to build three data center buildings there. Fluor did not disclose the value and expects to book the award in the fourth quarter. The stock still fell 6.6% Wednesday.

TeraWulf said the support strengthens its ability to pursue competitive long-term project financing. "Cost of capital is fundamental to infrastructure development," said CFO Patrick Fleury.

What Analysts Expect From Friday’s Report

TeraWulf will hold a conference call at 8 a.m. ET Friday. Analysts expect a loss of about 19 cents per share on revenue of $61.8 million.

The company has missed EPS estimates in its last four quarters. In the second quarter, it reported a loss of $1.94 per share, versus the $0.22 loss analysts expected, and revenue of $44.8 million, which also missed.

Bernstein on Wednesday cut its price target on TeraWulf to $20 from $36 and kept an Outperform rating, after B. Riley lowered its target to $26 from $40 on Oct. 30 and kept a Buy rating.

WULF Stock Hits New 52-Week Low

Thursday’s drop sent TeraWulf to an intraday low of $9.51, a new 52-week low. The stock has lost roughly two-thirds of its value since hitting a 52-week high of $29.84 in late June and is down about 13% year to date.

Shares trade below their 20-day, 50-day and 200-day moving averages, near $12.17, $14.31 and $18.04, respectively, keeping the stock in a downtrend heading into Friday’s report.

WULF Stock Price Activity: TeraWulf shares are trading lower by 14.02% at $10.06 at the time of publication on Thursday, according to Benzinga Pro data.

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