10 Best US Stocks to Buy Under $5

3. TeraWulf Inc. (NASDAQ:WULF)

Number of Hedge Fund Holders: 37

Current Share Price: $4.21

TeraWulf Inc. (NASDAQ:WULF) is a financial services company that operates as a digital asset technology company. It develops and operates bitcoin mining facilities. It also owns and operates vertically integrated, environmentally clean data center infrastructure deployed to mine Bitcoin sustainably.

It is one of the best U.S. stocks to buy fewer than 5 to gain exposure in the burgeoning digital asset landscape. The operator of zero-carbon energy Bitcoin mining facilities has achieved a significant milestone in paying off its term loan, therefore reaching a clean balance sheet. The last payment of $77.5 million, which covered pre-payment charges and unpaid interest, represents a major achievement for the business, boosting its ability to manage its finances.

The early payoff of debt is a tactical step that sets the stage for TeraWulf Inc. (NASDAQ:WULF) to quickly expand its business activities and implement its energy infrastructure to meet increasing needs. This infrastructure focuses on Bitcoin mining and supports high-performance computing (HPC) and artificial intelligence (AI) projects.

The company achieved significant growth in its bitcoin mining capacity in August, doubling year-over-year to 10.0 EH/s. TeraWulf mined 184 bitcoin, averaging 5.9 bitcoin per day. Given that the average cost per bitcoin mined was $35,407, with a power rate of $0.044/kWh, the company is well positioned to generate significant value with Bitcoin trading at more than $50,000 a coin.

TeraWulf Inc. (NASDAQ:WULF) is in a robust growth phase, with 280.01% revenue growth over the last 12 months, as it benefits from higher Bitcoin prices. This upward trend is in line with the company’s strategy to pay off its debts and its bold plans for growth in the field of zero-emission Bitcoin mining.

In the second quarter of 2024, 37 hedge funds had stakes in TeraWulf Inc. (NASDAQ:WULF) with total positions worth $227.16 million. This is compared to 11 funds with positions worth $18.97 million in the preceding quarter.