Stock Traders Buy High Volume of TeraWulf Call Options (NASDAQ:WULF)

Key Points

• Investors bought 342,369 TeraWulf call options Friday, about 75% above the average daily volume.
• Third-quarter revenue climbed 50.7% year over year to $76.2 million, beating estimates; high-performance computing leases contributed about 83% of revenue.
• The AI-infrastructure pivot faces risks: Bitcoin-mining revenue fell 69%, the company remains loss-making, and its construction and financing plans carry execution risk.

TeraWulf Inc. (NASDAQ:WULF - Get Free Report) was the target of some unusual options trading activity on Friday. Investors acquired 342,369 call options on the company. This is an increase of approximately 75% compared to the average daily volume of 195,208 call options.

More TeraWulf News

Here are the key news stories impacting TeraWulf this week:

• Positive Sentiment: Third-quarter revenue rose 50.7% year over year to $76.2 million, ahead of estimates, while the $0.03-per-share loss was narrower than expected. High-performance computing leases generated $63 million, about 83% of revenue. TeraWulf Q3 results
• Positive Sentiment: Google’s credit backstop for financing tied to TeraWulf’s planned $19 billion Anthropic lease may improve access to funding and strengthen its AI-infrastructure growth story. The company also reported 102 MW of critical IT capacity online, with another 336 MW under construction. Google credit backstop
• Neutral Sentiment: A broader rebound in AI-infrastructure stocks is also helping the sector, though TeraWulf was reported to be lagging some peers. AI infrastructure stock rebound
• Negative Sentiment: Bitcoin-mining revenue fell 69%, highlighting the decline of the legacy business as the company pivots to AI leases. TeraWulf remains loss-making, and its construction and financing plans carry execution risk; broader concerns about data-center regulation have also weighed on the sector. Bitcoin mining revenue decline

TeraWulf Price Performance

WULF stock traded up $1.11 on Friday, hitting $11.20. 83,689,477 shares of the company's stock traded hands, compared to its average volume of 33,227,063. TeraWulf has a 1-year low of $9.51 and a 1-year high of $29.84. The stock has a market cap of $5.59 billion, a price-to-earnings ratio of -2.53 and a beta of 4.00. The stock has a fifty day moving average of $14.31 and a 200-day moving average of $17.96. The company has a current ratio of 0.75, a quick ratio of 0.75 and a debt-to-equity ratio of 27.25.

TeraWulf (NASDAQ:WULF - Get Free Report) last released its quarterly earnings data on Friday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.18) by $0.15. The business had revenue of $76.23 million during the quarter, compared to analyst estimates of $62.49 million. TeraWulf had a negative return on equity of 458.62% and a negative net margin of 1,179.94%. The company's revenue was up 50.7% compared to the same quarter last year. During the same period last year, the company posted ($1.13) EPS. On average, analysts forecast that TeraWulf will post -1.04 EPS for the current fiscal year.

Analyst Ratings Changes

WULF has been the subject of a number of analyst reports. HC Wainwright restated a "buy" rating on shares of TeraWulf in a research report on Friday, August 21st. Rothschild & Co Redburn initiated coverage on TeraWulf in a research note on Monday, September 21st. They set a "neutral" rating and a $15.00 price objective for the company. TD Cowen initiated coverage on TeraWulf in a research report on Monday, October 12th. They issued a "buy" rating and a $21.00 target price on the stock. Keefe, Bruyette & Woods cut their target price on TeraWulf from $33.00 to $30.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 28th. Finally, B. Riley Financial reduced their price target on shares of TeraWulf from $40.00 to $26.00 and set a "buy" rating for the company in a report on Friday, October 30th. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, TeraWulf has an average rating of "Moderate Buy" and a consensus price target of $31.05.

Insider Activity at TeraWulf

In related news, Director Walter Carter sold 130,626 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $15.14, for a total transaction of $1,977,677.64. Following the sale, the director owned 229,090 shares in the company, valued at $3,468,422.60. This represents a 36.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Michael Bucella bought 6,085 shares of the business's stock in a transaction on Tuesday, September 15th. The stock was acquired at an average cost of $14.79 per share, for a total transaction of $89,997.15. Following the acquisition, the director directly owned 350,789 shares of the company's stock, valued at $5,188,169.31. The trade was a 1.77% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 11,968 shares of company stock valued at $189,962 in the last quarter. Insiders own 15.90% of the company's stock.

Hedge Funds Weigh In On TeraWulf

A number of institutional investors have recently bought and sold shares of WULF. BlackRock Inc. bought a new stake in TeraWulf during the second quarter worth approximately $577,805,000. Bank of America Corp DE acquired a new position in TeraWulf during the second quarter valued at approximately $140,057,000. Connor Clark & Lunn Investment Management Ltd. acquired a new position in TeraWulf during the second quarter valued at approximately $61,962,000. Jennison Associates LLC bought a new position in shares of TeraWulf in the first quarter valued at approximately $53,418,000. Finally, Engle Capital Management L.P. raised its position in shares of TeraWulf by 574.3% in the first quarter. Engle Capital Management L.P. now owns 2,950,100 shares of the company's stock valued at $42,570,000 after purchasing an additional 2,512,600 shares during the period. Hedge funds and other institutional investors own 62.49% of the company's stock.

About TeraWulf

TeraWulf Inc is a digital asset infrastructure company focused primarily on developing and operating environmentally conscious data centers for bitcoin mining and other high-performance computing applications. The company emphasizes the use of low-carbon energy, including nuclear and hydroelectric power, to support energy-intensive computing operations.

TeraWulf operates mining and data center facilities in the United States, including the Lake Mariner site in New York and the Nautilus Cryptomine facility in Pennsylvania.

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