Shares of TeraWulf, the Bitcoin miner turned data-center operator, sold off on Tuesday following New York Gov. Kathy Hochul's decision to prohibit large data-center construction for up to a year. However, Wall Street isn't concerned -- and believes there's a TeraWulf buying opportunity.
TeraWulf stock declined 2.3% to $18.96 on Wednesday, extending losses after falling 7% on Tuesday amid Hochul's executive order to create a one-year moratorium in New York for data-centers larger than 50 megawatts.
Shares on Wednesday were set to close lower for a fourth consecutive trading session, in which the stock has retreated below its 50-day moving average, which is right around the $24.30 level. TeraWulf stock has lost $2.06 billion in market value since the closing bell on July 9, falling nearly 19% since then.
On the face of it, Hochul's decision Tuesday appeared to be bad news for TeraWulf. The company is uniquely exposed to the decision, with its Lake Mariner data-center campus and its under-development Cayuga site, both of which are located in New York.
However, Wall Street doesn't see a meaningful impact.
Cantor Fitzgerald on Wednesday noted that the decision creates limited near-term risk and a buying opportunity for TeraWulf. The firm has an Overweight rating on the stock with a $37 price target.
Meanwhile, Rosenblatt analyst Chris Brendler on Wednesday reiterated his Buy rating on the stock, along with his $30 price target on the shares. That price target represents 58% upside from current trading levels.
"Although WULF should be largely exempt and now has the majority of its power footprint outside of NY, the stock still sold off," Brendler wrote. "We view this development as more headline risk that structural as the enforcement mechanism simply doesn't reach the company's existing NY platform."
Along with TeraWulf, fellow neocloud and data-center operator stocks also came under pressure Tuesday.
CoreWeave and Nebius declined 4% and 7.8%, respectively, on Tuesday and kept trending lower Wednesday. Riot Platforms, Cipher Digital, and Hut 8 -- all AI data-center developers that cut their teeth in Bitcoin mining -- also felt the impact of the New York moratorium, trading mostly lower Tuesday and Wednesday.
TeraWulf shares are down 23% this month, but have advanced 65% this year and have surged 260% over the past 12 months.
Write to Kit Norton at kit.norton@barrons.com
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July 15, 2026 12:57 ET (16:57 GMT)
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