WULF Stock Rebounds From Lowest Close In Over A Year, B. Riley Says Selloff ‘In No Way’ Justified

• B. Riley analyst Nick Giles reiterated a 'Buy' rating on TeraWulf.
• He called it one of the highest-quality names in its high-performance computing coverage.
• The company’s third-quarter revenue jumped over 51% year-over-year to $76.2 million.

TeraWulf (WULF) shares rebounded from their lowest point in over a year on Friday, after the company reported its third-quarter results, with B.Riley saying the recent selloff was “in no way” justified for the stock.

The stock ended Friday’s session at around $11, while on Thursday, it closed at $10 before briefly dipping to $9, its lowest price in more than a year. Despite Friday’s gain, shares were still down over 3% for the week. 

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WULF stock closed up over 12% on Friday. On Stocktwits, retail sentiment around WULF improved to the ‘bullish’ zone from ‘neutral,’ accompanied by ‘high’ chatter levels over the past day. 

Why B.Riley Is Betting Big On WULF Stock

According to TheFly, B. Riley analyst Nick Giles reiterated a ‘Buy’ rating on the stock, adding that the company's HPC lease income nearly doubled from the prior quarter. Giles added that the recent selloff in shares was "in no way" justified for the stock.

Giles said the “next major catalyst” will be when the financing for TeraWulf’s Anthropic (ANT) lease is secured. He called the company “one of the highest-quality names in our HPC coverage.” The deal would help ease the concerns about funding and dilution that have been hanging over the stock, Giles said.

The 20-year lease covered roughly 401 megawatts of computing power at TeraWulf's Justified campus and is expected to generate about $19 billion during its first term.

The company announced on Tuesday that Alphabet Inc.’s (GOOG, GOOGL) Google was set to provide a credit backdrop to the firm. TeraWulf expects the first parts of the campus to be ready by the end of 2027 and the rest to follow in the second quarter of 2028.

Data Center Leases Drive Revenue

TeraWulf reported third-quarter revenue of $76.2 million, about 51% higher than $50.6 million a year ago. The company's revenue was 19% above analyst expectations of $64.07 million, according to Koyfin. 

Most of that revenue came from leasing data-center space for high-performance computing, with its HPC lease income rising to $63 million, up from $7.2 million a year earlier. Bitcoin (BTC) mining revenue dropped to $13.2 million from $43.4 million.

Net income stood at $709.9 million, with most of it driven by a non-cash gain of $728.4 million. That gain stems from changes in the valuation of the company's warrant and derivative liabilities, the company said. 

The company reported an adjusted loss of $0.03 per share, compared with the $0.38 loss that analysts expected, according to Koyfin data.

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