TeraWulf received multiple price target hikes Friday after the bitcoin miner on Thursday landed a 10-year AI hosting deal with Fluidstack. Google is taking a stake in TeraWulf as it helps fund the projects.
TeraWulf owns and operates industrial-scale data centers in the U.S., which are tailored for high-performance compute hosting and bitcoin mining.
Rosenblatt in a Friday research note said that the company's new relationship with Fluidstack and Google are "transformational" for both TeraWulf and the sector, The Fly reported. The firm sees even further upside after Thursday's nearly 60% rally. The deal and Google's investment "dramatically improves" TeraWulf's risk profile and overall cost of capital, Rosenblatt said. The firm raised its price target on WULF stock to 10.50 from 6 and kept a buy rating on shares.
Keefe Bruyette also lifted its price target on TeraWulf to 9.50 from 6.50 and kept a market rating on the shares.
Citizens JMP raised its price target on WULF stock to 13 from 7, also noting the company's Q2 beat from last week. The results underscore TeraWulf's progress in its pivot toward HPC hosting, the firm said. Citizens kept an outperform rating on WULF shares.
AI Hosting Deal, Google Stake
TeraWulf on Thursday announced it signed two, 10-year HPC co-location agreements with Fluidstack, which operates an AI cloud platform. Per the deal, TeraWulf will deploy more than 200 Megawatts (MW) of critical IT load at its Lake Mariner data center campus in Western New York.
The agreements represent about $3.7 billion in contracted revenue over the initial 10-year terms. They also include two, five-year extension options, which could bring the total contracted revenue to around $8.7 billion.
Google plans to backstop $1.8 billion of Fluidstack's lease obligations to support the buildout and project-related debt financing. In return, Google will receive around 41 million shares of TeraWulf stock, giving it about an 8% stake in the company.
TeraWulf expects to deliver 40 MW of IT load and have it online in the first half of 2026. It aims to deliver the remainder by the end of next year.
Clear Street in a Thursday research note called the deals "transformative agreements" for TeraWulf, that "materially advance its position as a leading provider of hyperscale AI/HPC infrastructure," The Fly reported. Execution and funding are still "watch items," the firm wrote, but said the deals "significantly improve visibility on growth and profitability."
Clear Street on Friday raised its price target on TeraWulf to 12 from 9 and kept a buy rating on shares.
TeraWulf Stock Continues To Rally
WULF stock rocked more than 59% Thursday, to trade at its highest price since December. Shares surged another 3% Friday.
TeraWulf has rebounded 335% from its April low and is now up more than 58% this year.
Google stock inched higher Friday and added to its small gain on Thursday. Shares are up roughly 8% this year, and are extended from a buy zone for a cup-with-handle base.
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