Shares of Bitcoin miner, TeraWulf Inc. (NASDAQ: WULF) are up approximately 17 per cent on Thursday as it executes plans to implement its strategic expansion into both artificial intelligence and high performance computing.
The company recently announced a long-term data center lease agreement with Abu Dhabi -based AI company Core42. The company is now set to deliver over 70 megawatts of capacity between Q1 and Q3 2025, has bolstered investor confidence.
This strategic pivot reduces TeraWulf’s reliance on volatile Bitcoin mining and positions it as a player in the rapidly growing AI infrastructure market. This is actually part of a growing trend where Bitcoin mining companies are finding they need to find alternative sources of revenue to offset the high price of Bitcoin mining.
Despite this, the broader cryptocurrency market has been experiencing renewed optimism, particularly following Bitcoin’s price surpassing USD$96,500 earlier this year.
TeraWulf benefits directly from rising cryptocurrency prices, which enhance the profitability of its mining operations. The company reported a 94 per cent year-over-year increase in self-mining capacity in December 2024, producing 158 bitcoins compared to 115 the previous month.
Additionally, pro-crypto policy signals such as Trump’s emphasis on nurturing the crypto sector, have further boosted sentiment Bitcoin mining.
Another factor pushing TeraWulf’s stock higher today may be a potential short squeeze.
Citadel Securities, a major financial institution, held about 70 per cent of the short interest in TeraWulf last year. The company mentioned this during a recent earnings call. Short sellers may be scrambling to cover their positions with shares on the rise.
Read more: Trump administration ends regulatory argument: Bitcoin is a commodity
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TeraWulf forecasts $297m revenue for 2025
Analysts remain overwhelmingly bullish on TeraWulf. Nine analysts give the stock a consensus “Strong Buy” rating. They project an average 12-month price target of $8.00. That target suggests a potential 164.46 per cent gain from recent levels.
Some analysts have raised their targets even higher. For example, Cantor Fitzgerald increased its target to $10.00. The firm cited TeraWulf’s operational efficiency and growth in AI and HPC hosting.
Further strengthening this outlook, TeraWulf forecasts $297.67 million in revenue for 2025. That would mark an 87.7 per cent year-over-year increase. This strong forecast supports analyst confidence. In turn, their bullish calls likely helped spark today’s buying activity. Investors appear to be positioning for further gains.
TeraWulf’s management has also boosted liquidity and executed on infrastructure upgrades. These include electrical enhancements at its Lake Mariner facility to support both HPC hosting and mining. These upgrades are on track to deliver 72.5 megawatts of HPC hosting capacity by the end of Q2 2025, further solidifying its growth trajectory. Investors appear to be rewarding the company for these tangible steps, as noted in X posts praising TeraWulf’s execution.
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