TLDR
- TeraWulf stock fell 2.3% Wednesday to $18.96, extending a near-19% drop since July 9
- New York Gov. Kathy Hochul ordered a one-year moratorium on data centers larger than 50 megawatts
- TeraWulf’s Lake Mariner and Cayuga sites are both in New York, making it uniquely exposed
- Cantor Fitzgerald and Rosenblatt both see the selloff as a buying opportunity, with targets of $37 and $30 respectively
- Analysts say the enforcement mechanism does not reach TeraWulf’s existing New York platform
TeraWulf stock has had a rough week. The Bitcoin miner-turned-data-center operator dropped 2.3% to $18.96 on Wednesday, making it four consecutive sessions in the red.
The stock has shed nearly 19% since July 9 and fallen below its 50-day moving average, which sits around $24.30. That wipeout has erased roughly $2.06 billion in market value in less than a week.
The selloff was triggered by New York Gov. Kathy Hochul’s executive order on Tuesday, which placed a one-year moratorium on constructing data centers larger than 50 megawatts in the state.
TeraWulf is more exposed than most. Its Lake Mariner data-center campus and the under-development Cayuga site are both located in New York, putting the company squarely in the crosshairs of the new policy — at least on paper.
But Wall Street isn’t buying the panic. Rosenblatt analyst Chris Brendler reiterated his Buy rating and $30 price target on Wednesday, representing about 58% upside from current levels.
“Although WULF should be largely exempt and now has the majority of its power footprint outside of NY, the stock still sold off,” Brendler wrote. “We view this development as more headline risk than structural as the enforcement mechanism simply doesn’t reach the company’s existing NY platform.”
Cantor Fitzgerald echoed that view, calling the selloff a buying opportunity. The firm kept its Overweight rating and $37 price target on the stock.
Analyst Targets Stack Up
Rosenblatt’s $30 target is based on 26 times its 2028 Adjusted EBITDA estimate for the company. Compass Point goes further, with a $40 target. Needham sits at $33, and Bernstein SocGen has an Outperform rating with a $36 target.
That’s a lot of conviction from the sell side, even with the stock sitting near $19.
TeraWulf wasn’t alone in the selloff. CoreWeave dropped 4% and Nebius fell 7.8% on Tuesday. Riot Platforms, Cipher Digital, and Hut 8 also felt the pressure, all trading lower Tuesday and Wednesday.
The Anthropic Deal Still Looms Large
Despite the moratorium noise, TeraWulf’s fundamental story hasn’t changed. The company recently signed a 20-year lease with Anthropic at its Hawesville, Kentucky location — 401 megawatts of IT capacity worth $19 billion total.
That deal sits outside New York entirely, and it’s a key reason analysts aren’t running for the exits.
TeraWulf also sold its 50.1% stake in Abernathy for around $530 million, pulling in a $450 million investment representing 168 megawatts.
The stock is down 23% this month but is still up 65% for the year and has surged 260% over the past 12 months. With a beta of 4.26, the volatility is nothing new — and for some analysts, that’s exactly the point.
Rosenblatt’s Buy rating was reiterated Wednesday, July 15, with the $30 price target unchanged.
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