Seeking Alpha issued a sell rating for TeraWulf. The report set a price target of $12 per share. Analysts identified significant shareholder dilution as a primary risk.
Google acquired a roughly 12.9% stake in the company through low-cost warrants. This issuance contributed to a substantial increase in outstanding shares. The dilution reportedly erodes value despite progress in asset development and large-scale leasing.
An entity associated with CEO Paul Prager recently pledged 3 million shares in a forward contract. Additional insider sales have also been recorded. The company continues to secure major leases with high-profile tenants such as Anthropic.
Multiple analysts have initiated coverage with a wide range of price targets. Concerns regarding the share structure remain a major headwind for the stock.