Roth MKM analyst Darren Aftahi initiated coverage on TeraWulf Inc. (NASDAQ:WULF) with a Buy rating and price target of $6.50.

The analyst stated that they view the company as a compelling investment opportunity in the expanding digital infrastructure energy sector.

WULF has established a transparent, cost-effective, and efficient BTC mining business, currently operating at 8 EH/s and expanding, wrote the analyst.

Aftahi anticipates that leveraging its substantial power portfolio of hundreds of megawatts for potential HPC infrastructure could drive substantial value creation through enhanced revenue and profit visibility.

The analyst writes that WULF is applying its infrastructure and power expertise to expand its facilities through a methodical process of testing, iterating, optimizing, and scaling.

This approach is expected to continue with the full development of Lake Mariner up to about 500MW (potentially more with expanded land access), constrained primarily by available growth capital, says the analyst.

In FY25, the analyst expects revenue to hit about $297 million (+93% Y/Y) and adjusted EBITDA of around $150.5 million.

Investors can gain exposure to the stock via Global X Blockchain ETF (NASDAQ:BKCH) and Valkyrie Bitcoin Miners ETF(NASDAQ:WGMI).

Price Action: WULF shares are down 3.84% at $5.01 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Benjamin Nelan from Pixabay