Bitcoin (BTC) miner TeraWulf (WULF) is “leading the pack in sustainable mining” and its stock continues to trade at a large discount versus its peers, Wall Street investment bank B. Riley said in a research note issued Thursday after the market close.

  • “While many other miners aim for carbon neutrality, TeraWulf is entering the space using zero-carbon resources from the start,” wrote analyst Lucas Pipes about the company, which went public in December and is backed by celebrities such as actress Gwyneth Paltrow.

  • Pipes, who is the only analyst covering the stock, according to FactSet data, initiated coverage of TeraWulf with a buy rating and 12-month price target of $24 per share, implying 159% upside from Thursday’s closing price of $9.28.

  • On Thursday, shares of TeraWulf were up 11.7% and they were rising roughly 6% in early trading on Friday. The stock has fallen about 36% this year, underperforming the mining-heavy Viridi Cleaner Energy Crypto-Mining & Semiconductor exchange-traded fund (RIGZ), which was down 17%.

  • The miner is using 100% zero-carbon nuclear energy at its Nautilus Cryptomine facility in Pennsylvania and at its Lake Mariner site in upstate New York. The company is using power from the grid through a deal with the New York Power Authority, whose mix is 90% carbon-free primarily using hydropower, Pipes said.

  • Pipes also noted TeraWulf has an experienced management team that has worked in energy infrastructure and power management, and cited the miner’s joint venture deal with Talen Energy which enables the company to lock-in longer-term power contracts.

  • On March 17, TeraWulf said it sees itself reaching a hashrate range of 4.7 to 5.1 exahash per second (EH/s) by the end of 2022 and 23 EH/s of mining capacity by 2025.

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Aoyon Ashraf is crypto mining reporter with more than a decade of experience in covering equity markets

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