Key Takeaways
- TeraWulf shares declined 2.3% Wednesday to close at $18.96, marking a four-day losing streak totaling nearly 19% since July 9
- Gov. Kathy Hochul implemented a year-long ban on data center construction exceeding 50 megawatts in New York
- Both of TeraWulf’s major facilities—Lake Mariner and Cayuga—are situated in New York, creating apparent exposure
- Analysts at Cantor Fitzgerald and Rosenblatt maintain bullish stances with price targets of $37 and $30, respectively
- Wall Street believes the moratorium’s enforcement framework doesn’t apply to TeraWulf’s current New York operations
TeraWulf shares have endured a challenging stretch. The cryptocurrency mining company that has pivoted toward data center operations saw its stock decline 2.3% to $18.96 on Wednesday, marking the fourth straight day of losses.
Since July 9, the equity has tumbled close to 19% and now trades beneath its 50-day moving average of approximately $24.30. This sharp decline has wiped out around $2.06 billion in market capitalization in under a week.
The catalyst behind this downturn was an executive order issued Tuesday by New York Governor Kathy Hochul, implementing a 12-month prohibition on building data centers exceeding 50 megawatts within state borders.
TeraWulf faces seemingly greater exposure compared to competitors. Both its Lake Mariner data center complex and the Cayuga facility currently under construction are situated in New York, theoretically placing the company directly in the path of this regulatory action.
However, Wall Street analysts aren’t convinced the selloff is justified. Chris Brendler from Rosenblatt maintained his Buy recommendation and $30 price objective on Wednesday, suggesting approximately 58% potential appreciation from present 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 noted. “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 shared this perspective, characterizing the decline as an attractive entry point. The investment firm maintained its Overweight recommendation and $37 price objective.
Street Targets Show Strong Conviction
Rosenblatt’s $30 projection reflects a valuation of 26 times the firm’s 2028 Adjusted EBITDA forecast for TeraWulf. Compass Point has set an even more aggressive $40 target. Needham maintains a $33 price objective, while Bernstein SocGen holds an Outperform rating with a $36 target.
This represents substantial bullish sentiment from the analyst community, particularly with shares trading around $19.
TeraWulf wasn’t the only company affected by the news. CoreWeave fell 4% while Nebius dropped 7.8% on Tuesday. Other industry players including Riot Platforms, Cipher Digital, and Hut 8 also experienced downward pressure throughout Tuesday and Wednesday trading sessions.
Anthropic Partnership Remains Central to Investment Thesis
Despite the regulatory headlines, TeraWulf’s core business narrative remains intact. The company recently secured a two-decade lease agreement with Anthropic for its Hawesville, Kentucky facility—a massive 401-megawatt IT capacity arrangement valued at $19 billion in aggregate.
This critical contract exists completely outside New York’s jurisdiction, which explains why analysts maintain their optimistic outlooks.
Additionally, TeraWulf divested its 50.1% ownership in Abernathy for approximately $530 million, while securing a $450 million investment representing 168 megawatts of capacity.
While shares have retreated 23% during July, the stock remains 65% higher year-to-date and has skyrocketed 260% over the trailing twelve months. With a beta coefficient of 4.26, this volatility is characteristic—and some analysts argue that’s precisely the nature of the opportunity.
Rosenblatt reaffirmed its Buy rating on Wednesday, July 15, maintaining the $30 price target without revision.
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