Core Insights - TeraWulf (WULF) shares are currently overvalued with a Value Score of F, trading at a price/book ratio of 31.18X compared to the industry average of 3.55X and the finance sector's 4.24X [1][8] - Year-to-date, TeraWulf shares have appreciated 122.9%, significantly outperforming the industry and sector returns of 3.2% and 12.8%, respectively [4][5] Valuation and Performance - TeraWulf's valuation is stretched, trading at a steep 31.18X book value, which is considerably higher than peers like Riot Platforms (2.13X) and Cleanspark (2.21X) [8] - The company has self-mined 485 bitcoin in Q2 2025, with mining capacity increasing by 45.5% year-over-year to 12.8 EH/s [9] Revenue Potential - TeraWulf's new deals with Fluidstack and Core42 are expected to add billions in potential revenue, with the Fluidstack deal alone representing approximately $6.7 billion in contracted revenues [10][11] - The company is on track to deliver 72.5 MW of HPC colocation capacity, with revenue generation expected to start in Q3 2025 [9][10] Competitive Landscape - TeraWulf faces stiff competition from Riot Platforms and Cleanspark, which hold significant bitcoin reserves [13] - The company is also impacted by volatility in bitcoin prices due to macroeconomic challenges and uncertainty regarding the U.S. government shutdown [15] Financial Outlook - The Zacks Consensus Estimate for TeraWulf's loss for Q3 2025 has widened to 7 cents per share, with expected revenues of $55.4 million, indicating 104.6% growth year-over-year [17] - For 2025, the consensus estimate for losses has widened to 33 cents per share, with projected revenues of $204.1 million, reflecting a 45.7% increase from 2024 [19] Investment Sentiment - Despite potential revenue growth from new leases and Alphabet's investment, TeraWulf's stretched valuation and increasing losses make it a risky investment [20] - The company currently holds a Zacks Rank 4 (Sell), indicating that investors should avoid the stock at this time [21]

Core Insights - TeraWulf (WULF) shares have appreciated 90.1% year to date (YTD), underperforming the Zacks Financial-Miscellaneous Services industry and the Zacks Finance sector's returns of 5.2% and 13.4% respectively [1] - The company reported revenues of $47.6 million in Q2 2025, reflecting a 38% sequential increase and a 34% year-over-year increase [1][10] - TeraWulf self-mined 485 bitcoin in Q2 2025, with mining capacity increasing 45.5% year over year to 12.8 EH/s [2] Financial Performance - Adjusted EBITDA for Q2 2025 was $14.5 million, down 25.6% year over year, compared to a negative $4.7 million in Q1 2025 [2] - Power cost per bitcoin self-mined increased by 98.5% year over year due to halving, rising network difficulty, and power price volatility [2] - Selling, general and administrative expenses are expected to be between $50 million and $55 million, up from previous guidance of $40-$45 million due to accelerated growth in the HPC business [3] Strategic Developments - TeraWulf is set to deliver 72.5 MW of HPC colocation capacity under data center lease agreements with Core42, expected to generate revenues starting Q3 2025 [5] - A deal with Fluidstack will provide over 360 MW of critical IT load at the Lake Mariner data center, with the facility capable of expanding to 500 MW and potentially 750 MW [6] - The Fluidstack deal represents approximately $6.7 billion in contracted revenues, with total expected contract revenues reaching $16 billion, supported by Alphabet's $3.2 billion credit [7] Competitive Landscape - TeraWulf has outperformed peers like Riot Platforms (55.7% YTD) and Cleanspark (12.4% YTD) [9] - The company faces significant competition from Riot Platforms and Cleanspark, both of which are also vertically integrated bitcoin mining companies [10] Valuation and Market Position - TeraWulf's stock is currently trading at a price/book ratio of 25.07X, significantly higher than the industry average of 3.67X, indicating a premium valuation [14] - Despite trading above the 50-day and 200-day moving averages, the stock is considered overvalued [17][14] - The Zacks Consensus Estimate for TeraWulf's loss for 2025 has widened to 27 cents per share, compared to a loss of 19 cents per share in 2024 [20]