TeraWulf Stock Skyrockets Again: Here’s Why the Rally Isn’t Stopping

Another day, another moonshot for TeraWulf.

The Bitcoin miner's stock is defying gravity—again—as institutional FOMO drowns out bearish whispers about energy costs and dilution risks. Here's what's fueling the frenzy.

Hashrate Meets Hypergrowth

TeraWulf's latest operational update shows mining efficiency hitting new highs. Their nuclear-powered facilities are now delivering sub-4-cent kWh rates—a brutal competitive edge when Bitcoin's price plays nice.

Wall Street's Latest Crypto Crush

Analysts (the same ones who called it 'overvalued' at $2) now see upside as 'exposure to Bitcoin without the volatility.' Cue eye-rolls from crypto natives.

One thing's clear: In a market where 'AI' and 'blockchain' get any stock a 20% bump, TeraWulf's real innovation might be mastering the art of the pivot.

TeraWulf expands its deal

TeraWulf announced a major deal last week with Fluidstack, an artificial intelligence (AI) cloud provider. TeraWulf will provide 200 megawatts of compute power at its data center in New York.

As part of the deal, Google said that it WOULD guarantee up to $1.8 billion if Fluidstack fails to make good on its lease obligations. That number is now $3.2 billion. Google will be awarded stock warrants that would give it a roughly 14% stake in TeraWulf if exercised. This backstop will help TeraWulf finance a major data center expansion, giving creditors more faith if things go south.

Image source: Getty Images.

AI Data center building is white hot

There is a gap between the amount of computing supply for AI and demand. That is leading to an enormous race to build new capacity, and companies like TeraWulf are reaping the benefits. They are, however, still unprofitable, and these buildouts are insanely expensive. They are relying on heavy amounts of debt to finance their growth, making them extremely sensitive to any significant downturns in AI demand. The company is also using stock sales to raise capital, announcing today that it will raise $400 million in a private placement that is likely to dilute shareholder value. I would avoid TeraWulf and other data center companies like it.