TeraWulf Shares Keep Sliding as Morgan Stanley Holds Overweight and $65 Target

what happened

Shares of TeraWulf dropped 8.6% on Thursday to $10.54, putting the stock on track for a fourth straight daily loss. According to Dow Jones Market Data, the shares have shed 23% during the slide and 29% so far this month. Investors have been pulled lower by worries that higher borrowing costs will hit artificial-intelligence infrastructure stocks, Barron's reported.

Morgan Stanley analyst Stephen Byrd kept his Overweight rating and $65 price target, a level that represents 463% upside from Wednesday's close of $11.54. Even his bear case of $17.50, based mostly on existing contracts, implies 52% upside. Byrd argues the market is overlooking the value of current data-center agreements and potential future deals. He wrote: "We rarely see a stock as mispriced as WULF and other powered shell providers."

The company, formerly focused on Bitcoin mining, has moved into building AI data centers and agreed in July to a 20-year Anthropic lease with about $19 billion in contracted revenue. It held roughly $3 billion in cash and restricted cash as of June 30, and its lease terms can pass some higher borrowing costs to tenants. Investors fear that construction financing could require new shares, diluting existing holders.

why it matters

For a miner, this pivot changes the business model: long-term data-center leases depend on contracts rather than on Bitcoin's price or the hashrate that drives mining revenue. The key question here is how the buildout gets financed and whether dilution follows, not only where BTC trades. According to FactSet, analysts' average price target is $33.28, but that is their view, not a Newsmetry forecast.

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