TeraWulf ($WULF) is sitting on one of the juiciest short setups in the AI power space right now. Official short interest as of Sept 30 was already 119.4 million shares (~31% of the float). That was already spicy.
But look at the last two weeks of trading: price got smashed from ~$14.80 down to $13.21 while short volume stayed stupid high (40-55% of the daily volume on most days). When price is falling and shorts are still printing that hard, they ain’t covering, they’re piling in.
My estimate right now: 150–165 million shares short.
That’s roughly 39–43% of the float.
Days to cover was already 4.5. It’s higher now.
Why the shorts are wrong (and why this can explode)
TeraWulf isn’t some pure Bitcoin miner bag anymore. They’ve been quietly stacking AI/HPC power contracts like mad:
Muskie campus in Kentucky just doubled contracted power to 1 GW
Long-term Anthropic lease (hundreds of MW, multi-year)
More capacity coming online at Lake Mariner and other sites
This is power-advantaged AI infrastructure. The exact thing the market has been throwing money at. Shorts are betting the company can’t execute the build-out or will dilute itself into oblivion. Maybe they’re right… or maybe they’re about to get their faces ripped off when the next capacity update or earnings drop hits.
Analysts still mostly love it (TD Cowen just initiated with a Buy and $21 target while the stock is chilling in the low teens). Consensus targets are still way above current price.
The setup
High and rising short interest
Price has already been beaten down
Real business momentum in the one sector that actually matters right now (AI power)
Next official short interest report is coming soon and is almost certainly going to show an increase
This is the classic “shorts got too comfortable on the way down” scenario. One decent catalyst and the covering cascade can get nasty real quick.
Position: Not financial advice, but the risk/reward is looking tasty as hell from here.
Diamond hands or paper hands? Your call, degeneritos!
🚀🚀🚀
(Position: long shares + some calls. Not advice. Do your own fucking research.)