On Friday, B.Riley Financial adjusted its price target for Terawulf Inc. (NASDAQ:WULF), a cryptocurrency mining company, to $3.00 from the previous $4.00, while keeping a Buy rating on the stock. The revision followed Terawulf's fourth-quarter earnings report, which showed an adjusted EBITDA of $17.4 million, surpassing both B.Riley's $7.9 million projection and the consensus estimate of $13.8 million.
The company's performance was attributed to robust mining economics, despite a slight 2% quarter-over-quarter decrease in Bitcoin production, ending the quarter with approximately 971 BTC mined. Terawulf's operational hash rate saw a significant increase, rising 44% from the previous quarter to 7.9 EH/s, and reaching an installed hash rate of 8.0 EH/s by March 31.
Looking forward, Terawulf has outlined ambitious expansion plans. By mid-2024, the company expects to boost its total self-mining hash rate capacity to 10.0 EH/s, with a further increase to 13.1 EH/s by the end of the year, coinciding with the addition of Building 3 at its Lake Mariner facility.
According to the company's management, there is considerable potential for further expansion, with goals to increase operational capacity to 300 megawatts (MW) by the end of 2024 and to 550 MW by the end of 2025. This expansion could potentially support a total hash rate of approximately 28.3 EH/s.
Additionally, Terawulf is advancing its High-Performance Computing (HPC) project at Lake Mariner, having committed an initial 2 MW for the deployment of GPUs. In light of these developments, B.Riley has revised its estimates for the first quarter and full-year 2024 adjusted EBITDA to $25.2 million and $113.7 million, respectively.
The adjustments reflect updated assumptions about the global network hash rate. Despite the reduced price target, B.Riley reaffirms its positive outlook on Terawulf's stock.
InvestingPro Insights
Terawulf Inc. (NASDAQ:WULF) has been navigating a dynamic market landscape, and the latest insights from InvestingPro provide a detailed snapshot of the company's financial health and stock performance. With a market capitalization of $716.3 million, the company stands out with its impressive revenue growth, which reached 360.51% over the last twelve months as of Q4 2023. This growth momentum is further highlighted by a quarterly revenue increase of 143.39% in Q4 2023.
Investors should note that while the company has shown a high return over the last year with a 152.18% increase, it has experienced significant price volatility recently, with a 9.89% drop in the last week alone. This aligns with the InvestingPro Tips indicating that the stock generally trades with high volatility and has taken a big hit over the short term. Despite this, analysts anticipate sales growth in the current year, underscoring the potential for resilience in the face of market fluctuations.
For those considering an investment in Terawulf, the InvestingPro platform offers additional insights. There are 14 more InvestingPro Tips available that could provide a deeper understanding of the stock's potential and challenges. To access these tips and more, use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.