Is WULF a good stock to buy? We came across a bullish thesis on TeraWulf Inc. on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on WULF. TeraWulf Inc.’s share was trading at $28.31 as of June 22nd. WULF’s forward P/E was 29.76 according to Yahoo Finance.
TeraWulf Inc., together with its subsidiaries, owns, develops, operates digital infrastructure in the United States. WULF is transitioning from a Bitcoin mining operator into a nuclear-powered AI and HPC infrastructure platform, with its Lake Mariner campus emerging as one of the most cost-advantaged digital infrastructure sites in North America. The transformation became visible in Q1 2026, when HPC revenue of $21M surpassed Bitcoin mining revenue of $13M, marking a structural shift toward long-duration, contract-backed cash flows rather than volatile hash-rate economics.
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This inflection is supported by a revenue model increasingly dominated by colocation contracts from AI tenants such as Core42 and FluidStack, alongside credit-enhanced demand linked to Google-backed infrastructure agreements that reduce counterparty risk and improve visibility of future earnings. The underlying economics are strengthened by TeraWulf’s nuclear-powered Lake Mariner site, which secures electricity at approximately $0.02 per kilowatt-hour, a structural cost advantage that is extremely difficult for new entrants to replicate given long nuclear development timelines.
This positions the company to compete more directly with hyperscalers building AI infrastructure, while maintaining materially lower power costs than conventional data center operators relying on grid or renewable sources. Even though reported losses in Q1 2026 were large due to non-cash warrant revaluation and interest expenses, the core infrastructure business is generating improving cash flows under a more predictable contract structure.
Overall, the shift from cyclical Bitcoin mining toward contracted AI infrastructure revenue, combined with a durable nuclear power moat and expanding hyperscaler-linked demand, creates a bullish setup with meaningful rerating potential as the market recognizes the quality of earnings transition positioning it for continued multiple expansion over time.
Previously, we covered a bullish thesis on IREN Limited (IREN) by Anxious-Criticism652 in May 2025, which highlighted its pivot from Bitcoin mining to AI cloud infrastructure backed by renewable energy, scalable GPU deployment, and zero-debt balance sheet. IREN’s stock price has appreciated by approximately 523.57% since our coverage. LongYield shares similar view but emphasizes TeraWulf’s nuclear-powered HPC campuses and contracted, credit-enhanced cash flows driving stable earnings visibility rerating potential.
TeraWulf Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held WULF at the end of the first quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of WULF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WULF and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
