1. Terawulf, Inc. (NASDAQ:WULF)
Share Price: $4.71
Year to Date Performance: 96.25%
Number of Hedge Fund Holders: 37
Terawulf (NASDAQ:WULF) owns and operates vertically integrated, environmentally clean bitcoin mining facilities in the US. It generates domestically produced Bitcoin powered by 95% zero-carbon energy resources. These include hydro, solar, and nuclear, with the objective of using 100% zero-carbon energy. It has two mining facilities: the Nautilus Cryptomine facility in Pennsylvania (a joint venture with Cumulus Coin, LLC) and the Lake Mariner Data facility in New York.
The company’s principal operations include operating, developing, and constructing bitcoin mining facilities in the US. Each of its mining facilities, either owned through joint ventures or wholly, deploys a range of computers that solve complex cryptographic algorithms. The computing power is provided to a mining pool operator to validate transactions on the Bitcoin network and mine Bitcoin.
It attained several milestones in the second quarter of 2024 that significantly boosted its position as one of the most efficient public Bitcoin mining and digital infrastructure owning companies. It completed the construction of Building 4 at Lake Mariner, taking its total mining capacity to over 10 exahash per second. It boasts industry-leading power costs estimated at $0.035 per kilowatt hour for 2024, with a fleet efficiency of 23.7 joules per terrahash, giving it a competitive standing.
Terawulf (NASDAQ:WULF) also strategically amended its Bitman purchase agreements to specify the delivery of S21 Pro miners. It has chosen to acquire around 5,000 of the 30,000 miners available under the option purchase agreement. This monetizes at the rate of $16 per terahash. Through the WULF Den project, it has also made substantial progress in its AI and high-performance computing initiatives. In addition, the company has streamlined its capital structure, eliminating debt and converting around $29 million (out of $41 million) lender warrants into common shares. These initiatives strengthen the company’s balance sheet, positioning it for sustained future growth.
Overall, WULF ranks first among the 8 hot penny stocks to invest in according to hedge funds. While we acknowledge the potential of penny stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than WULF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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