We recently published a list of 10 Best Bitcoin and Blockchain Stocks To Buy Right Now. In this article, we are going to take a look at where TeraWulf Inc. (NASDAQ:WULF) stands against other best bitcoin and blockchain stocks to buy.
Crypto Market Updates: Where is Bitcoin Heading?
While Donald Trump had revealed his plans to make America the crypto capital of the world, he also stated that he would be sacking the chair of the Securities and Exchange Commission, Gary Gensler, who has led the SEC’s crackdown on the crypto market. Gensler tried to regulate the market which he believed to be at least partially made up of securities trading illegally.
The price of bitcoin rose above $80,000 for the first time ever following Donald Trump’s victory in the US elections. Other cryptocurrencies such as dogecoin which is the favorite coin of Elon Musk, a strong Trump supporter, also posted gains. On November 29, CNBC reported that Bitcoin was on pace to post a 38% gain for November which would make the month its best since February.
While Tom Lee, Fundstrat Capital CIO, is confident that Bitcoin is going to close well above $100,000 before year-end as he joined CNBC, Bitwise’s Matt Hougan previously appeared on CNBC to call the market a win-win post-election. According to him, there is a clear path right up to $100,000 by 2024’s end while $200,000 is completely reasonable for 2025 considering that the trend is up and is going to stay intact for a while. As of December 5, Bitcoin is trading at $101,158.
Meanwhile, there is a noticeable shortage on the supply side. Frank Speiser, Metafide CEO joined ‘The Exchange’ to discuss his Bitcoin outlook on November 29. He mentioned ETF inflows being at record highs, an intention by the new administration to assemble a strategic Bitcoin reserve, and smaller trades simultaneously showing up on the market. However, there is not enough Bitcoin to satisfy the current rising demand.
An interesting new statement on the US crypto market was recently made by Fed Chair Jerome Powell as he called Bitcoin a competitor for gold, not the U.S. dollar, negating the stance of those crypto fans who see Bitcoin as a possible replacement for the dollar. Powell sees Bitcoin as a speculative asset such as gold, rather than something comparable to a currency.
With the new administration expected to legitimize digital assets and Bitcoin surpassing $100,000, the market is yet to see how things unfold.
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Our Methodology
In order to compile a list of the 10 best bitcoin and blockchain stocks to buy right now, we used stock screeners and relevant ETFs to make a list of the most dominant companies. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best bitcoin and blockchain stocks to buy right now have been arranged in ascending order of their hedge fund holders, as of Q3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
TeraWulf Inc. (NASDAQ:WULF)
Number of Hedge Fund Holders: 35
TeraWulf Inc. (NASDAQ:WULF) specializes in developing and operating fully integrated, sustainable facilities supporting Bitcoin mining and AI/HPC applications. The firm generates revenue primarily through Bitcoin mining, leveraging predominantly zero-carbon energy sources. As of September 30, the firm owned and operated, either independently or through a joint venture, two bitcoin mining facilities, the Lake Mariner Facility and the Nautilus Cryptomine Facility. In October, TeraWulf sold its entire 25% equity interest in the joint venture that owns the Nautilus Cryptomine Facility.
TeraWulf is positioned to maximize profitability and growth by delivering low-cost Bitcoin production with scalable HPC hosting infrastructure. The firm is leveraging its success in Bitcoin mining as the foundation for expanding into alternative compute hosting, a strategic move that aligns perfectly with the rising demand for high-power data center capacity. Recently, the firm entered into a new, long-term ground lease agreement at Lake Mariner extending both term and land area to support its expansion into HPC hosting.
During the third quarter, TeraWulf Inc. (NASDAQ:WULF) self-mined 555 bitcoin across the Lake Mariner and Nautilus Cryptomine facilities. Revenue rose to $27.1 million in Q3 2024 compared to $19.0 million in the prior year period. As of September 30, 2024, the firm has a total self-mining hashrate capacity of 10.0 EH/s, an increase of 100% year-over-year.
November was a good month for TeraWulf Inc. (NASDAQ:WULF) as it mined 115 bitcoin with an average daily production rate of nearly four bitcoin. It achieved 8.4 EH/s of operational self-mining capacity, up 68% year-over-year. Additionally, the firm completed critical electrical upgrades to support Lake Mariner HPC hosting and mining buildings. WULF remains on track to deliver 72.5 MW of HPC hosting capacity by the end of Q2 2025.
Overall, WULF ranks 4th on our list of best bitcoin and blockchain stocks to buy right now. While we acknowledge the potential of WULF as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
