TeraWulf Rebounds 5% As CEO Distinguishes Model From Neoclouds

TeraWulf Inc. (NASDAQ:WULF) is positioning itself differently from neocloud operators, with CEO Paul Prager emphasizing long-term contracted cash flows, investment-grade counterparties and disciplined execution as key strengths.

The stock moved higher on Monday after a rebound from the stock’s recent sharp selloff. TeraWulf stock lost over 33% in last one month as it as it pivoted from Bitcoin mining to AI data-center builds.

Prager Says TeraWulf Is Not a Neocloud

Prager said investors should distinguish TeraWulf from companies such as CoreWeave.

"We’re a colocation company, which means we own the land, we own the energy, we build the building, and we operate the data center," he said.

He told CNBC on Thursday that model gives TeraWulf long-term, predictable cash flow and reduces exposure to changes in GPU or TPU values.

Investment-Grade Backing Supports Financing

Prager said TeraWulf focuses on high-quality counterparties rather than neocloud customers.

At Lake Mariner, he said the company has an investment-grade backstop from Alphabet Inc. (NASDAQ:GOOG (NASDAQ:GOOGL) Google, while its Kentucky project also carries an investment-grade backstop commitment.

That structure, he said, allows TeraWulf to raise capital at competitive rates and lowers the financing risk that can affect operators with weaker counterparties.

"We don’t have neoclouds as customer. We are focused on investment grade credit," Prager said.

Execution Remains the Key Test

Prager said investors should focus on whether TeraWulf can deliver projects on schedule and within budget.

The company has guided to buildout costs of roughly $8 million to $10 million per megawatt, and Prager said it remains within that range.

He said TeraWulf expects to deliver Data Hall 4 in the fourth quarter and CB5 in the first quarter of next year.

"So we’re on schedule, we are on track to deliver within a timely fashion, we are delivering at the cost that we told the customer we would deliver at, and we have the capital," Prager said.

Long-Term Contracts Reduce Technology Risk

Prager said TeraWulf does not depend on forecasting future GPU or TPU values.

Instead, the company signs 20-year agreements with predictable revenue streams and investment-grade credit on both sides of the transaction.

"We are a landlord of powered real estate," Prager said, describing TeraWulf’s model as supplying and operating power-enabled data-center infrastructure rather than betting directly on AI hardware economics.

WULF Stock Price Activity: TeraWulf shares are trading higher by 4.92% at $12.26 at the time of publication on Monday, according to Benzinga Pro data.

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