Since compiling Bitcoin Mining Stocks last year, Terawulf (NASDAQ: WULF) stock price has doubled, starting from $4.39 per share to its current $8.98. During this rise, the Maryland-based company diversified into two core subsidiaries, Wulf Compute and Wulf Mining.
While Wulf Mining continues its Bitcoin mining operations thanks to the rising price of BTC, Wulf Compute offers data centers for high performance computing (HPC) and AI workloads. This dual focus makes Terawulf an attractive candidate for investors seeking exposure not only in Bitcoin’s role as a hedge against central banks, but also in the secular growth of AI/HPC Megatrend.
The recent large-scale technology investment in WULF stocks makes it even more clear. The company’s dual-track model of Bitcoin mining and AI/HPC hosting has earned validation beyond the crypto niche. Of course, the best time to reveal Wolf was last year when we covered it, but what can investors expect next?
Terawulf as a beneficiary of Alphabet’s data center diversification
In 2025 alone, Alphabet (NASDAQ: GOOGL) committed about $75 billion to increase the capacity of its data centers. At the Google Cloud Next Conference in April, Alphabet CEO Sundar Pichai said, “The AI opportunities are so great that it can be.”
However, the Big Tech giant doesn’t just invest in its own cloud computing sector to meet the demand for AI. In mid-August, regarding revenue for the second quarter of 2025, Terawulf revealed a $1.8 billion backstop in its Fluidstack lease obligations offered by Google.
Terawulf’s contract with HPC/AI workload Fluidstack is worth $3.7 billion in revenue on the 10-year terms of the two agreements, with two five-year extension options, and could potentially increase the value to $8.7 billion. This is where Google intervened to fund its debt by acquiring about 41 million shares, or about 8% of the stock in Terawulf.
On the ground, Fluidstack will utilize the Lake Mariner Data Center campus in Terawulf in western New York to provide over 200 MW of computer power.
Given that Fluidstack is a partner of Nvidia and Dell and Borealis Data Center for Exascale GPU clusters, Terawulf will become an important secondary beneficiary of AI Boom. By effectively taking on the venture, the company is taking advantage of one of the fastest growing demand curves in high-tech by positioning itself as a high-tech adjoining.
Terawulf’s addressable market as a whole
In its Energy and AI report, the International Energy Agency (IEA) predicted that data center power consumption would increase by 70% between 2024 and 2030 as a basic case. The US will lead this effort and leave Europe and China. So, President Trump has issued several executive orders to tear down bureaucratic hurdles, particularly related to nuclear energy.
According to McKinsey & Company, this demand would account for $6.7 trillion worth of calculation by 2030. In particular, for AI workloads, the market value is projected to range from $3 trillion to $8 trillion Capital Expenses (CAPEX). This relies heavily on AI optimization and a significant reduction in AI compilation, as it makes the AI model accurate and reliable.
If the latter scenario is successful, enterprise integration expects mass adoption of AI. However, even when stalling in this accuracy domain, we remember that computational demands vary widely between text, images and video generation.
According to the IEA, text generation requires approximately 0.3 WH of per task energy by small language model (SLM), while image generation requires 1.7 WH. Video generation is two orders of magnitude larger, exerting approximately 115 WH for 6 seconds of low quality video. For comparison, a smartphone requires 15 Wh to charge.
Given the lack of areas of human activity that could not include AI, it is safe to say that Terawulf sits at the bond between two secular growth curves. It is a clean energy infrastructure for AI adoption and Bitcoin mining.
Terawulf’s outlook and price targets
In the second quarter of 2025, Terrawolf mined 485 BTC at the aforementioned Lake Mariner facility. This was lower than 699 BTC in the last quarter, but was expected after selling from Nautila Scriptmin last October.
However, given the rarity of Bitcoin and the growth in institutionalization that drives its price, Terawulf’s voluntary BTC value increased from $46.1 million to $47.6 million over that period. Overall, the company has increased its clean BTC mining capacity by 45.5% year-on-year to 12.8 EH/s.
After securing the Kayuga Site with an 80-year lease at Lansing, the company added 400 MW of HPC/AI capacity. By 2030, the total total capacity of the Terrawolf should be 1,150 MW and be divided between 750 MW at Lake Mariner and 400 MW at Cayuga.
As of the second quarter, Terawulf holds $90 million in cash and BTC, but has $500 million accrued debt. Vaneck has maintained its BTC price forecast from late 2024, forecasting $180,000 per BTC by the end of the year. This price target is now likelihood, given that the Fed is a signal reduction despite growing concerns about inflation.
Second, Terawulf’s debt load to increase AI demand must be manageable. According to WSJ forecast data, all analysts are in the “buy” camp, with an average Wulf price target of $11.92. The bottom outlook is $6.5, with Wolf shares cap price target of $14 per share.
Disclaimer: The author does not or has the position of the securities discussed in the article. All stock prices were quoted at the time of writing.
