Bitcoin Miner TeraWulf Leads Early HPC Market Entry, Analyst Projects $610M Revenue By 2026

Needham analyst John Todaro initiated coverage on TeraWulf Inc (NASDAQ: WULF ) with a Buy rating and a price target of $6.

Todaro noted that TeraWulf is one of the best miners for converting data center capacity to High-Performance Computing (HPC).

HPC represents a high-margin, large, and growing revenue opportunity with long-term contracts that provide revenue and margin transparency longer term.

Todaro noted that TeraWulf will be early to market in bringing a 100MW+ site online for HPC. Additionally, the analyst expects lower capex versus peers as TeraWulf’s sites are more suitable for near-term HPC designs.

He expects HPC to be a fast-growing, attractive, and stable margin business for miners with available power capacity.

Todaro forecasts TeraWulf will generate ~$610 million in revenue in 2026, with $350 million coming from HPC.

The analyst project the company will operate at an attractive 56% adjusted EBITDA margin.

The price target reflects 12.5x EV/EBITDA Todaro’s discounted 2026 estimate, which is at a premium to pure-play bitcoin miners Riot Platforms, Inc (NASDAQ: RIOT ), Iris Energy Limited (NASDAQ: IREN ), which the analyst noted is warranted given its near term HPC plans, but at a modest discount to Core Scientific, Inc (NASDAQ: CORZ ) which he said is currently more de-risked given CORZ has a customer in place.

Price Action: WULF stock is up 2.36% at $3.91 at the last check on Wednesday.

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