Bye Bye Bitcoin, Hello AI data centers: Initiate at Buy; $34 price objective

Research evidence excerpt

Bye Bye Bitcoin, Hello AI data centers: Initiate at Buy; $34 price objective

f the company’s data center campuses.

His role is particularly critical in aligning infrastructure delivery with the evolving needs

of hyperscaler and AI customers, ensuring that data centers are built to match specific

hardware and performance specifications while maintaining tight coordination between

construction timelines and customer deployments.

Patrick Fleury, the Chief Financial Officer

Mr. Fleury has a background in infrastructure finance and project capital structuring. His

responsibilities include financing large-scale developments, managing the balance sheet,

and transitioning the company toward more traditional infrastructure funding models

such as project finance and long-duration debt. Fleury has highlighted the company’s

ambition to ultimately achieve investment-grade financing characteristics, reflecting the

stability of contracted HPC revenues.

Dilutive instruments from funding

Terawulf ended 1Q26 with 423mn shares. In April it issued 54.51mn shares at $19

raising $1.036bn. If its in-the money converts and warrants are exercised, it would add

nearly 175mn shares to its share count. This increases the shares outstanding by nearly

37% to 598mn.

Terawulf has three outstanding convertible bonds and three outstanding warrants which

are in-the-money and dilutive if converted into share. In the model we calculate dilution

using the treasury method. Below we discuss the dilutions impact from the conversion

with no mitigation of the dilution assumed.

The warrants issued to Goggle are the single largest component of WULF’s dilutive

instruments. The warranted can convert at the earlier of lease commencement or 180

days following target lease commencement. The warrants expire April 2030.