Quick Take
TeraWulf (WULF) is transitioning from Bitcoin mining into AI data center infrastructure, using its access to large amounts of power to build campuses for companies that need massive computing capacity. The stock has become a way to invest in the AI infrastructure buildout rather than Bitcoin. Investors are debating whether WULF’s long-term contracts justify the current valuation or whether construction delays, financing costs and customer risk are being underestimated.
Bull Case vs. Bear Case
Bull Case
1. The Anthropic deal validates the strategy
Anthropic has signed a 20-year lease for 401 MW of computing capacity at WULF’s Kentucky campus, proving that WULF can attract one of the world’s largest AI companies.
2. Scarce power supports future AI growth
Grid-connected power is increasingly difficult to secure, and bulls believe WULF’s available sites can attract additional customers as demand for AI computing capacity continues to grow.
3. Google adds credibility to the AI pivot.
Google agreed to support part of the payment obligations of WULF’s customer, Fluidstack, making the contract easier to finance and giving investors greater confidence that WULF can execute large AI infrastructure projects.
Bear Case
1. Major cash flow remains years away
The Anthropic campus is expected to begin delivering capacity in late 2027 and reach full capacity in early 2028, and any meaningful delays could push major revenue and EBITDA into 2029 or 2030.
2. Debt and dilution could reduce upside
Construction costs, debt, interest expense and a possible stock offering could reduce how much of the project’s value ultimately reaches current shareholders.
3. Anthropic’s economics may not hold
Falling token prices, competition from Chinese and open-source models, and weak AI model economics could pressure Anthropic’s margins and eventually force it to renegotiate long-term infrastructure commitments.
WULF Trade Idea: Technical Analysis
This section compares how bullish and bearish traders may view the chart setup.
Bull Chart
Bullish Trend Channel
The bulls look at the 35% decline in 6 weeks and a 20+% decline since the Anthropic agreement as the market discounting the new risks facing WULF. They see the $17 to $18.50 range as solid support. And look for a rebound back towards the highs near $30.
Bear Chart
Bearish Momentum Warning
The bears are looking past this next support level near $18 and considering the bottom part of the previous range where the stock traded between $11 and $17. They are more focused on the fundamental risks associated with delays, cost overruns, and dilution, which could knock the company's multiple lower leading to an $11 stock price.
WULF Trade Idea: Bull & Bear
The U.S.-patented Strike Selector is a game-changing tool built to think like top hedge fund managers. It takes your view on the stock, compares the available option choices, and identifies the best risk-reward strike measured by Edge. It's simple to use. No more Greeks. No more IV. No more guessing.
BULL OPTIONS TRADE - BUY
WULF Bullish Options Trade
With high confidence (8/10) and a target price near $30, the Strike Selector points to the WULF $19 call expiring in October as the best option to BUY given your view.
Unfortunately, the metrics shown makes this trade unsuitable for outright Calls.
Even with a target stock price almost 55% higher, the trade only offers a max potential +157% return with an implied Edge of 9%.
This indicates the implied volatility embedded in the option is too high, which requires a higher Target Stock Price. In this scenario, consider call spreads.
Take the Masterclass in the OptionsGeek Learning Center to better understand how to analyze the results.
BEAR OPTIONS TRADE - BUY
WULF Bearish Option Trade
With high confidence (8/10) and a downside target near $11, the Strike Selector points to the WULF $19 puts expiring in October as the best option to BUY given your view.
However, it also points out that this trade is not a trade top hedge fund managers would take.
At the target, with the stock down 43%, the trade only offers a potential +124% return with an implied Edge of 29%.
This indicates the implied volatility embedded in the option is too high, which requires a lower Target Stock Price. In this scenario, consider put spreads.
Take the Masterclass in the OptionsGeek Learning Center to better understand how to analyze the results.
Quick Take
TeraWulf (WULF) is transitioning from Bitcoin mining into AI data center infrastructure, using its access to large amounts of power to build campuses for companies that need massive computing capacity. The stock has become a way to invest in the AI infrastructure buildout rather than Bitcoin. Investors are debating whether WULF’s long-term contracts justify the current valuation or whether construction delays, financing costs and customer risk are being underestimated.
WULF Bull Case
Bull Case
1. The Anthropic deal validates the strategy
Anthropic has signed a 20-year lease for 401 MW of computing capacity at WULF’s Kentucky campus, proving that WULF can attract one of the world’s largest AI companies.
2. Scarce power supports future AI growth
Grid-connected power is increasingly difficult to secure, and bulls believe WULF’s available sites can attract additional customers as demand for AI computing capacity continues to grow.
3. Google adds credibility to the AI pivot.
Google agreed to support part of the payment obligations of WULF’s customer, Fluidstack, making the contract easier to finance and giving investors greater confidence that WULF can execute large AI infrastructure projects.
Technical Analysis: Bull
Bull Chart
Bullish Trend Channel
The bulls look at the 35% decline in 6 weeks and a 20+% decline since the Anthropic agreement as the market discounting the new risks facing WULF. They see the $17 to $18.50 range as solid support. And look for a rebound back towards the highs near $30.
Strike Selector
The U.S.-patented Strike Selector is a game-changing tool built to think like top hedge fund managers. It takes your view on the stock, compares the available option choices, and identifies the best risk-reward strike measured by Edge. It's simple to use. No more Greeks. No more IV. No more guessing.
Bull Options Trade
Bullish Options Trade
With high confidence (8/10) and a target price near $30, the Strike Selector points to the WULF $19 call expiring in October as the best option to BUY given your view.
Unfortunately, the metrics shown makes this trade unsuitable for outright Calls.
Even with a target stock price almost 55% higher, the trade only offers a max potential +157% return with an implied Edge of 9%.
This indicates the implied volatility embedded in the option is too high, which requires a higher Target Stock Price. In this scenario, consider call spreads.
Take the Masterclass in the OptionsGeek Learning Center to better understand how to analyze the results.
WULF Bear Case
Bear Case
1. Major cash flow remains years away
The Anthropic campus is expected to begin delivering capacity in late 2027 and reach full capacity in early 2028, and any meaningful delays could push major revenue and EBITDA into 2029 or 2030.
2. Debt and dilution could reduce upside
Construction costs, debt, interest expense and a possible stock offering could reduce how much of the project’s value ultimately reaches current shareholders.
3. Anthropic’s economics may not hold
Falling token prices, competition from Chinese and open-source models, and weak AI model economics could pressure Anthropic’s margins and eventually force it to renegotiate long-term infrastructure commitments.
Technical Analysis: Bear
Bear Chart
Bearish Momentum Warning
The bears are looking past this next support level near $18 and considering the bottom part of the previous range where the stock traded between $11 and $17. They are more focused on the fundamental risks associated with delays, cost overruns, and dilution, which could knock the company's multiple lower leading to an $11 stock price.
Strike Selector
The U.S.-patented Strike Selector is a game-changing tool built to think like top hedge fund managers. It takes your view on the stock, compares the available option choices, and identifies the best risk-reward strike measured by Edge. It's simple to use. No more Greeks. No more IV. No more guessing.
Bear Options Trade
Bearish Option Trade
With high confidence (8/10) and a downside target near $11, the Strike Selector points to the WULF $19 puts expiring in October as the best option to BUY given your view.
However, it also points out that this trade is not a trade top hedge fund managers would take.
At the target, with the stock down 43%, the trade only offers a potential +124% return with an implied Edge of 29%.
This indicates the implied volatility embedded in the option is too high, which requires a lower Target Stock Price. In this scenario, consider put spreads.
Take the Masterclass in the OptionsGeek Learning Center to better understand how to analyze the results.
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