TeraWulf (WULF) Is Down 5.1% After Pivot to AI-Driven Digital Asset Infrastructure and Q3 Revenue Surge

• TeraWulf Inc. recently reported a sharp increase in quarterly revenue to US$50.58 million for the third quarter ended September 30, 2025, while its net loss grew to US$455.05 million as the company accelerated expansion into high-performance computing and strengthened partnerships with major technology firms.
• One material insight is the company's ongoing transition from pure Bitcoin mining to diversified digital asset infrastructure, driven by fast-growing demand for AI and data center hosting reflected in its new hyperscale agreements and leasing income.
• We’ll explore how the company’s revenue growth and infrastructure partnerships support TeraWulf’s investment narrative and future prospects.

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TeraWulf Investment Narrative Recap

For investors considering TeraWulf, the core thesis revolves around the company's transition into high-performance computing and AI-driven digital infrastructure, underpinned by major long-term partnerships. The latest earnings report, with sharply higher revenues but growing net losses, does not materially change the primary near-term catalyst, TeraWulf's ability to monetize its new hyperscale agreements, or the leading risk, which remains the execution challenges and capital demands of large-scale expansion.

Among recent announcements, the joint venture with Fluidstack to develop a US$9.5 billion, 168 MW high-performance computing facility stands out. This aligns closely with TeraWulf’s goal of expanding contracted revenue streams and is central to the current investment narrative, especially as the company seeks to diversify its business beyond legacy bitcoin mining.

However, in contrast, investors should be aware that the success of these long-term leases depends not only on demand, but also on the financial strength and stability of counterparties like Fluidstack...

Read the full narrative on TeraWulf (it's free!)

TeraWulf's outlook envisions $920.8 million in revenue and $157.9 million in earnings by 2028. This calls for an annual revenue growth rate of 85.6% and an earnings increase of $289.6 million from current earnings of -$131.7 million.

Uncover how TeraWulf's forecasts yield a $21.29 fair value, a 77% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community value TeraWulf between US$4.92 and US$21.29 per share, revealing a wide spectrum of expectations. This diversity of opinion comes as rising revenue forecasts remain paired with persistent challenges to profitability, prompting a closer look at how community assumptions differ.

Explore 7 other fair value estimates on TeraWulf - why the stock might be worth less than half the current price!

Build Your Own TeraWulf Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your TeraWulf research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
• Our free TeraWulf research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TeraWulf's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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