Bitcoin Miner TeraWulf Leads Early HPC Market Entry, Analyst Projects $610M Revenue By 2026
Needham
analyst John Todaro initiated coverage on
TeraWulf Inc
(NASDAQ:
WULF
) with
a Buy rating
and a price target of $6.
Todaro noted that TeraWulf is one of the best miners for converting data center capacity to High-Performance Computing (HPC).
HPC represents a high-margin, large, and growing revenue opportunity with long-term contracts that provide revenue and margin transparency longer term.
Todaro noted that TeraWulf will be early to market in bringing a 100MW+ site online for HPC. Additionally, the analyst expects lower capex versus peers as TeraWulf’s sites are more suitable for near-term HPC designs.
He expects HPC to be a fast-growing, attractive, and stable margin business for miners with available power capacity.
Todaro forecasts TeraWulf will generate ~$610 million in revenue in 2026, with $350 million coming from HPC.
The analyst project the company will operate at an attractive 56% adjusted EBITDA margin.
The price target reflects 12.5x EV/EBITDA Todaro’s discounted 2026 estimate, which is at a premium to pure-play bitcoin miners
Riot Platforms, Inc
(NASDAQ:
RIOT
),
Iris Energy Limited
(NASDAQ:
IREN
), which the analyst noted is warranted given its near term HPC plans, but at a modest discount to
Core Scientific, Inc
(NASDAQ:
CORZ
) which he said is currently more de-risked given CORZ has a customer in place.
Price Action:
WULF stock is up 2.36% at $3.91 at the last check on Wednesday.
Image via Shutterstock
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This article
Bitcoin Miner TeraWulf Leads Early HPC Market Entry, Analyst Projects $610M Revenue By 2026
originally appeared on
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