On November 13, New York City-based Aurelius Capital Management disclosed a new position in TeraWulf (WULF 3.94%), acquiring 450,000 shares valued at approximately $5.1 million.
What Happened
Aurelius Capital Management disclosed a new equity position in TeraWulf (WULF 3.94%), acquiring 450,000 shares valued at $5.1 million as of September 30. The transaction, detailed in an SEC filing dated November 13, places TeraWulf among the fund’s largest holdings at quarter-end. The fund reported total U.S. equity assets under management (AUM) of $55.2 million across nine positions.
What Else to Know
The new position now represents 9.3% of Aurelius Capital's reportable AUM.
Top holdings after the filing:
- NASDAQ:BITF: $19 million (34.4% of AUM)
- NASDAQ:CORZ: $8.4 million (15.3% of AUM)
- NASDAQ:CIFR: $6.3 million (11.4% of AUM)
- NASDAQ:WULF: $5.1 million (9.3% of AUM)
- NASDAQ:RIOT: $4.5 million (8.2% of AUM)
As of Friday, WULF shares were priced at $12.52, up a staggering 93% over the past year and well outperforming the S&P 500's 16.5% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $5.2 billion |
| Revenue (TTM) | $167.6 million |
| Net Income (TTM) | ($586.6 million) |
| Price (as of Friday) | $12.52 |
Company Snapshot
- TeraWulf operates bitcoin mining facilities in New York and Pennsylvania, generating revenue through the production and sale of digital assets.
- The business model centers on owning and operating energy-efficient infrastructure for bitcoin mining, monetizing mined bitcoin and related services.
- The company serves institutional investors and participants in the digital asset ecosystem seeking exposure to bitcoin mining operations.
TeraWulf is a digital asset technology company focused on large-scale bitcoin mining in the United States. The company leverages proprietary infrastructure at strategically located facilities to optimize operational efficiency and scalability. With a focus on energy-efficient operations, TeraWulf positions itself to capitalize on the growing demand for digital asset production and blockchain infrastructure.
Foolish Take
This new position sits in a portfolio that’s heavy into other publicly traded bitcoin miners and infrastructure names, suggesting a view that the sector’s risk profile has improved enough to justify concentration rather than diversification. With nearly half of reported assets tied up in just two holdings and a sizable amount spread across bitcoin-adjacent infrastructure plays, the move signals some confidence in the cryptocurrency industry’s ability to post meaningful returns.
That thesis lines up with TeraWulf’s latest earnings. In the third quarter, the company reported revenue of $50.6 million, up 87% year over year thanks to not only by higher bitcoin prices but also the start of high-performance computing lease revenue, which contributed $7.2 million in its first reported quarter. Management disclosed more than $17 billion in long-term, credit-enhanced HPC contracts and over $5 billion in completed long-term financings, shifting the business toward infrastructure-style cash flows rather than pure commodity exposure. Cash, meanwhile, stood at roughly $713 million at quarter-end, providing liquidity to fund expansion while bitcoin mining remains volatile. Ultimately, this looks like a bet that digital infrastructure backed by long-term contracts can justify premium positioning even after a sharp run-up in the stock.
Glossary
Reportable AUM: The portion of assets under management that a fund is required to disclose in regulatory filings.
Equity position: Ownership stake in a company, typically through holding its common or preferred stock.
Trailing 12-month (TTM): The 12-month period ending with the most recent quarterly report.
Stake: The amount of ownership or investment a party holds in a company or asset.
Post-trade holding: The number of shares or value of an investment after a transaction has been completed.
Digital assets: Assets that exist in digital form, such as cryptocurrencies like bitcoin.
Bitcoin mining: The process of validating bitcoin transactions and adding them to the blockchain, earning new bitcoins as a reward.
Infrastructure (in mining): Physical and technological systems used to support bitcoin mining operations, such as data centers and power facilities.
Monetizing: Turning an asset or activity into a source of revenue or profit.
Scalability: The ability of a business or system to handle increased demand or growth efficiently.
