ATB doubles price target on TeraWulf

ATB Capital Markets analyst Martin Toner doubled his target price on TeraWulf (TeraWulf Stock Quote, Chart, News, Analysts, Financials NASDAQ:WULF) to US $26.00 from $13.00 in an Oct. 28 report, citing a transformational expansion of the company’s high-performance computing footprint. He maintained an “Outperform” rating.

Toner said the company’s newly announced 168-megawatt joint venture with Fluidstack in Abernathy, Texas, backed by a 25-year hosting agreement valued at roughly US$9.5-billion in contracted revenue, “untethers the growth trajectory” from TeraWulf’s existing power sites and could be a “game changer.”

TeraWulf will hold a 51% stake, with operations slated for the second half of 2026. Google is providing a US$1.3-billion backstop to Fluidstack’s long-term lease obligations, improving financing visibility and credit quality.

Toner said the deal lifts TeraWulf’s contracted HPC platform to more than 510 MW of critical IT load secured in just 10 months, with management now targeting 250–500 MW of additional contracted capacity per year, versus ATB’s prior estimate of 100 MW.

Toner increased long-term contracted and energized MW forecasts, now projecting 1.7 GW of critical load by 2033 and US$2.5-billion of EBITDA that year.

TeraWulf pre-announced third-quarter revenue of US$48- to US$52-million and EBITDA of US$15- to US$19-million, up sharply from US$6-million a year earlier. Toner trimmed his estimates to US$51-million and US$15.2-million, reflecting lower hashrate during HPC construction. He values the Abernathy contract at US$1.15 per share for TeraWulf’s interest, despite lower margins and no property ownership.

Founded by Easton, Md.-based Beowulf Electricity & Data, TeraWulf develops large-scale digital and energy infrastructure across North America. Its Lake Mariner site in New York is powered primarily by hydro and nuclear energy.

Toner said TeraWulf should generate US$74.3-million in Adjusted EBITDA on US$194.9-million of revenue in fiscal 2025, improving to US$307.6-million on US$525.2-million in 2026.

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