TeraWulf: Sound Strategy But High Valuation

Mike Fay
5.73K Followers
(11min)

Summary

  • TeraWulf has made strategic moves, including selling its Nautilus stake and ending a lease early, to focus on HPC/AI data centers.
  • The company is transitioning from Bitcoin mining to high-performance computing, with plans to announce its first HPC client by year-end.
  • Hedge funds, including Stanley Druckenmiller's Duquesne Family Office, have increased their stakes in WULF, indicating institutional interest.
  • Despite potential, WULF remains speculative; I maintain a 'hold' rating until further progression in the HPC business is evident.

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My last article covering TeraWulf (NASDAQ:WULF) for Seeking Alpha was in late-August. For the third time out of five instances previously covering the stock, I concluded WULF was a 'hold.' Among other things, part of the focus of

This article was written by

5.73K Followers
Former media research analyst. Main coverage areas are crypto, BTC miners, metal, and media equities. I'm not an investment advisor. I just share what I do with my own capital and why. Outside of Seeking Alpha, I also write the Heretic Speculator newsletter over at Substack.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CLSK, BITF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I'm not an investment advisor.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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