TeraWulf (WULF) Is Up 21.3% After Announcing Mandatory Preferred Stock Conversion—Has the Streamlined Structure Changed the Investment Case?

• On November 27, 2025, TeraWulf announced it will convert all outstanding shares of its Series A Convertible Preferred Stock into common stock, effective December 9, 2025, with each preferred share exchanged for 141.9483 common shares and fractional amounts paid in cash.
• This move aims to simplify TeraWulf’s capital structure, improve investor transparency, and signals continued progress in its transition toward AI infrastructure and growth-focused initiatives.
• We'll examine how streamlining the capital structure through the mandatory conversion reinforces TeraWulf's investment narrative and long-term focus.

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TeraWulf Investment Narrative Recap

To be a shareholder in TeraWulf today, you need to believe in the company's ability to evolve away from its legacy crypto mining roots and deliver recurring, high-margin revenue as a zero-carbon AI infrastructure provider. The mandatory preferred stock conversion simplifies the capital structure, but has little short-term impact on the biggest catalyst, securing and executing on large-scale, multi-year AI data center leases, or the company’s most pressing risk: counterparty and execution risk tied to Fluidstack and related projects.

Among recent announcements, TeraWulf's October 28 joint venture with Fluidstack stands out as most relevant. This multi-year high-performance computing project underpins both the company's revenue growth ambitions and its growing reliance on new tenants for long-term financial health, reinforcing why clarity and simplicity around ownership and cash flow matter at this stage.

Yet, while the conversion clarifies the equity picture, investors should also be aware that if Fluidstack's demand or financial strength weakens...

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

TeraWulf's outlook anticipates $920.8 million in revenue and $157.9 million in earnings by 2028. This projection is based on an annual revenue growth rate of 85.6% and a $289.6 million increase in earnings from the current level of -$131.7 million.

Uncover how TeraWulf's forecasts yield a $21.44 fair value, a 44% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community offered nine fair value estimates for TeraWulf, ranging from US$4.92 to US$21.44 per share. Given mounting execution and counterparty risks as the company pivots to AI data centers, explore these differing viewpoints to inform your assessment.

Explore 9 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 3 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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