TeraWulf Analysts Stay Bullish After Google Backstops $19 Billion Anthropic Lease

Shares of TeraWulf Inc. (NASDAQ:WULF) rose on Monday after the bitcoin mining company reported its third-quarter results on Friday.

Here are some key analyst takeaways:

• Needham analyst John Todaro reiterated a Buy rating, while reducing the price target from $33 to $25.
• Rosenblatt Securities analyst Chris Brendler maintained a Buy rating, while cutting the price target from $30 to $20.

Check out other analyst stock ratings.

Needham: While TeraWulf reported revenue of $76 million, higher than the estimated $63 million, it posted an adjusted EBITDA loss of $12.8 million versus expectations of positive adjusted EBITDA of $14.6 million, Todaro said in a note. Management expects the phased delivery of the Lake Mariner CB-4/CB-5 projects to remain on schedule through the first quarter of 2027, aiming to reach an annualized leasing revenue rate of approximately $700 million by the end of that quarter, Todaro added.

The company secured investment grade credit support from Alphabet Inc.’s (NASDAQ:GOOG) Google for its Anthropic lease of around $19 billion, the analyst stated. "Unlike the Fluidstack transaction, Google receives no incremental upfront equity, and the cost of the backstop is recoverable from the tenant," Todaro wrote.

Rosenblatt Securities: TeraWulf reported a significant revenue beat driven by HPC (high-performance computing) lease revenue of $63.0 million and mining revenue of $13.2 million, higher than consensus estimates of $56.3 million and $12.6 million, respectively. Brendler added that the company reported an adjusted EBITDA loss due to:

• $11 million of pre-revenue costs
• $18 million of development costs at uncontracted sites

With credit support from Google and an EPC (engineering, procurement, and construction) contract in place, "the runway has been cleared" for TeraWulf to secure project financing for its massive $19 billion lease agreement with Anthropic in the coming months, the analyst stated.

"In an increasingly challenging environment for the HPC providers, we see WULF as a standout performer that offers compelling near-term and long-term upside," Brendler wrote.

WULF Price Action: TeraWulf shares were up 8.8% at $12.37 at the time of publication on Monday, according to Benzinga Pro data.

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