TeraWulf Inc (NASDAQ:WULF) shares rose in early trading on Monday, after the company reported upbeat first-quarter results on Friday.

Here are the key analyst insights:

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Needham: TeraWulf reported revenue of $34 million, with HPC (high-performance computing) lease revenue growing 117% sequentially to $21 million, being partially offset by a 50% decline in mining revenue, Todaro said in a note. At $2.4 million, the company's COGS (cost of goods sold) was significantly below Needham's estimate of $16 million, he added.

TeraWulf posted an adjusted EBITDA loss of $4.1 million, substantially below Needham's estimate of $2.5 million and management’s pre-announced range of breakeven to $3 million, the analyst stated. Management cited the "reclassification of certain costs" as the reason for the shortfall, he further wrote.

The company's Kentucky site is among the next in the sector to be signed, and management expects to have a lease by the end of the second quarter of this year, Todaro said.

Rosenblatt Securities: TeraWulf's results reflected "encouraging" trends, with HPC revenues exceeding Bitcoin mining revenues, Brendler said. While the company had already identified HPC as the driver of its revenues in the quarter, the gap was much wider than expected, he added.

TeraWulf took advantage of harsh weather conditions that significantly boosted power rates and helped take demand response revenues to a record $14.1 million, up 404% year-on-year, the analyst stated. He further noted the following developments that boost the future of HPC:

  • Lake Mariner development is on track and interconnection approval for the next 250 MW is expected by the middle of this year, "with availability shortly thereafter."
  • The Hawesville, Kentucky, site is already in the late stage, and the next contract is likely to use this site.

"WULF also announced a new $250M corporate revolver supported by a syndicate of eight global banks, which we view as another important validation of both the underlying HPC model and WULF's execution," Brendler further wrote.

WULF Price Action: Shares of TeraWulf had risen by 3.01% to $24.10 at the time of publication on Monday.

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