We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
WULF vs. RIOT: Which Bitcoin Miner Stock Is the Smarter Investment?
Read MoreHide Full Article
Key Takeaways
Riot Platforms operates 1.86 GW of power capacity, supporting Bitcoin mining today and AI/HPC growth ahead.
RIOT reported strong Q3 revenues and net income, aided by operating leverage and power curtailment credits.
TeraWulf's AI push brings long-term contracts, but heavy debt, losses and execution risk pressure the stock.
The Bitcoin mining sector is in a transition phase as operators are increasingly focusing on digital infrastructure and AI hosting to diversify revenues. TeraWulf (WULF - Free Report) and Riot Platforms (RIOT - Free Report) are publicly traded Bitcoin miners in the United States that operate large-scale facilities powered by low-cost energy. TeraWulf differentiates itself through a strong focus on zero-carbon energy and expanding AI and high-performance computing capacity via joint ventures, while Riot Platforms stands out as one of the largest pure-play miners with a growing data-center footprint.
Recent moves, including TeraWulf’s secured-project financing tied to its Fluidstack joint venture and Riot Platforms’ stable November BTC production and infrastructure expansion, highlight how each is adapting to a rapidly evolving mining and computing landscape.
So, which stock offers greater upside, TeraWulf or Riot Platforms? Let’s find out.
The Case for WULF Stock
The company's evolution from Bitcoin mining to AI and HPC infrastructure is associated with several structural risks and implementation challenges. Although TeraWulf maintains 245 megawatts of mining capacity at Lake Mariner, revenues are still at risk due to Bitcoin price volatility, rising network difficulty and halving-related pressures. This exposure was evident as Bitcoin output steadily declined to 377 BTC in the third quarter of 2025.
HPC expansion has materially increased TeraWulf’s capital intensity and leverage. The company raised more than $5 billion in 2025 through convertible notes and secured debt, pushing total debt to roughly $1.5 billion. High leverage increases refinancing and interest expense risk and contributes to severe earnings volatility, including a large GAAP loss associated with a non-cash revaluation in the third quarter of 2025.
WULF faces challenges from executing large-scale data center builds, higher operating expenses from AI and HPC expansion, and continued sensitivity to Bitcoin volatility. Against this backdrop, the company's stock fell nearly 11% to $11.57 on Wednesday as investors became wary of heavy AI spending.
Nonetheless, TeraWulf benefits from low-cost, clean power, vertically integrated site development and long-term, credit-enhanced HPC leases. During the third quarter of 2025, the company commenced recurring HPC lease revenues and secured over $16 billion in long-term HPC contracts, including Fluidstack leases backed by Google, providing strong revenue visibility.
Opportunities lie in AI and hyperscale demand. Management reaffirmed a target of 250-500 MW of new HPC capacity contracted annually, supported by expansion at Lake Mariner, the Abernathy JV in Texas (up to 600 MW), and the long-dated Cayuga site lease beginning in 2027.
The Zacks Consensus Estimate for the first quarter of 2026 loss is currently pegged at 18 cents per share, unchanged over the past 30 days, slightly worse than a loss of 16 cents reported a year ago.
Image Source: Zacks Investment Research
The Case for RIOT Stock
Riot Platforms is transitioning from a pure-play Bitcoin miner toward a data center development model, supported by its vertically integrated operations and fully permitted land and power portfolio. In the third quarter of 2025, the company operated Texas and Kentucky mining sites with approximately 1.86 GW of power capacity, positioning it for future AI and HPC expansion.
Key advantages for Riot Platforms include its large scale, low-cost power access and financial flexibility. In the third quarter, the company generated $180.2 million in revenues, primarily from Bitcoin mining, and reported net income of $104.5 million, benefiting from strong operating leverage and power curtailment credits of $30.7 million.
Riot Platforms’ growth opportunity lies in AI and HPC development at the Corsicana site, where Core & Shell construction has started on two data center buildings with 112 MW of critical IT capacity. The campus is planned to scale to 1 GW over time, and management noted ongoing leasing talks with hyperscaler, neocloud and enterprise customers, creating potential upside as contracts are executed.
Despite growth plans, the company faces pressure from roughly $214 million in near-term capex for the Corsicana buildout and ongoing Bitcoin market volatility. These factors weighed on production, which fell 14% year over year to 428 in November 2025 and decreased 2% sequentially.
The Zacks Consensus Estimate for the first quarter 2026 loss is currently pegged at 20 cents per share, unchanged over the past 30 days, representing a sharp improvement from the 90-cent loss reported in the year-ago quarter.
Image Source: Zacks Investment Research
WULF vs. RIOT: Price Performance & Valuation
Over the past six months, TeraWulf shares soared 215.3%, far outpacing Riot Platforms’ 40% gain and the Financial - Miscellaneous Services industry’s 5.4% decline. However, TeraWulf’s sharp rise comes with higher risk, including heavy debt, ongoing losses, warrant liabilities and costly HPC expansion that strains flexibility and raises execution risk.
In contrast, RIOT offers a more balanced profile, with a lower EV per available megawatt and an experienced in-house development team that has completed more than 200 projects, reducing execution risk as its AI-focused expansion progresses.
Stock Performance
Image Source: Zacks Investment Research
Both TeraWulf and Riot Platforms' shares are currently overvalued, as suggested by a Value Score of F.
On the valuation front, TeraWulf trades at a forward 12-month price-to-sales (P/S) multiple of 13.71, more than double Riot Platforms’ 6.8. TeraWulf’s higher multiple reflects optimism but increases sensitivity to execution and financing risks, whereas Riot Platforms’ lower valuation offers a more conservative and appealing entry point.
P/S F12M Ratio
Image Source: Zacks Investment Research
Conclusion
While TeraWulf offers strong AI and HPC growth potential, its premium valuation, higher leverage and execution risk from capital-intensive expansion make the stock riskier. Riot Platforms stands out with greater scale, lower EV per megawatt, steadier cash generation from Bitcoin mining and a proven in-house development track record. With stronger financial flexibility to fund AI expansion and a more conservative valuation, Riot Platforms provides more durable upside and emerges as the better investment choice.
RIOT currently carries a Zacks Rank #3 (Hold), whereas WULF has a Zacks Rank #4 (Sell).
Image: Bigstock
WULF vs. RIOT: Which Bitcoin Miner Stock Is the Smarter Investment?
Key Takeaways
The Bitcoin mining sector is in a transition phase as operators are increasingly focusing on digital infrastructure and AI hosting to diversify revenues. TeraWulf (WULF - Free Report) and Riot Platforms (RIOT - Free Report) are publicly traded Bitcoin miners in the United States that operate large-scale facilities powered by low-cost energy. TeraWulf differentiates itself through a strong focus on zero-carbon energy and expanding AI and high-performance computing capacity via joint ventures, while Riot Platforms stands out as one of the largest pure-play miners with a growing data-center footprint.
Recent moves, including TeraWulf’s secured-project financing tied to its Fluidstack joint venture and Riot Platforms’ stable November BTC production and infrastructure expansion, highlight how each is adapting to a rapidly evolving mining and computing landscape.
So, which stock offers greater upside, TeraWulf or Riot Platforms? Let’s find out.
The Case for WULF Stock
The company's evolution from Bitcoin mining to AI and HPC infrastructure is associated with several structural risks and implementation challenges. Although TeraWulf maintains 245 megawatts of mining capacity at Lake Mariner, revenues are still at risk due to Bitcoin price volatility, rising network difficulty and halving-related pressures. This exposure was evident as Bitcoin output steadily declined to 377 BTC in the third quarter of 2025.
HPC expansion has materially increased TeraWulf’s capital intensity and leverage. The company raised more than $5 billion in 2025 through convertible notes and secured debt, pushing total debt to roughly $1.5 billion. High leverage increases refinancing and interest expense risk and contributes to severe earnings volatility, including a large GAAP loss associated with a non-cash revaluation in the third quarter of 2025.
WULF faces challenges from executing large-scale data center builds, higher operating expenses from AI and HPC expansion, and continued sensitivity to Bitcoin volatility. Against this backdrop, the company's stock fell nearly 11% to $11.57 on Wednesday as investors became wary of heavy AI spending.
Nonetheless, TeraWulf benefits from low-cost, clean power, vertically integrated site development and long-term, credit-enhanced HPC leases. During the third quarter of 2025, the company commenced recurring HPC lease revenues and secured over $16 billion in long-term HPC contracts, including Fluidstack leases backed by Google, providing strong revenue visibility.
Opportunities lie in AI and hyperscale demand. Management reaffirmed a target of 250-500 MW of new HPC capacity contracted annually, supported by expansion at Lake Mariner, the Abernathy JV in Texas (up to 600 MW), and the long-dated Cayuga site lease beginning in 2027.
The Zacks Consensus Estimate for the first quarter of 2026 loss is currently pegged at 18 cents per share, unchanged over the past 30 days, slightly worse than a loss of 16 cents reported a year ago.
Image Source: Zacks Investment Research
The Case for RIOT Stock
Riot Platforms is transitioning from a pure-play Bitcoin miner toward a data center development model, supported by its vertically integrated operations and fully permitted land and power portfolio. In the third quarter of 2025, the company operated Texas and Kentucky mining sites with approximately 1.86 GW of power capacity, positioning it for future AI and HPC expansion.
Key advantages for Riot Platforms include its large scale, low-cost power access and financial flexibility. In the third quarter, the company generated $180.2 million in revenues, primarily from Bitcoin mining, and reported net income of $104.5 million, benefiting from strong operating leverage and power curtailment credits of $30.7 million.
Riot Platforms’ growth opportunity lies in AI and HPC development at the Corsicana site, where Core & Shell construction has started on two data center buildings with 112 MW of critical IT capacity. The campus is planned to scale to 1 GW over time, and management noted ongoing leasing talks with hyperscaler, neocloud and enterprise customers, creating potential upside as contracts are executed.
Despite growth plans, the company faces pressure from roughly $214 million in near-term capex for the Corsicana buildout and ongoing Bitcoin market volatility. These factors weighed on production, which fell 14% year over year to 428 in November 2025 and decreased 2% sequentially.
The Zacks Consensus Estimate for the first quarter 2026 loss is currently pegged at 20 cents per share, unchanged over the past 30 days, representing a sharp improvement from the 90-cent loss reported in the year-ago quarter.
Image Source: Zacks Investment Research
WULF vs. RIOT: Price Performance & Valuation
Over the past six months, TeraWulf shares soared 215.3%, far outpacing Riot Platforms’ 40% gain and the Financial - Miscellaneous Services industry’s 5.4% decline. However, TeraWulf’s sharp rise comes with higher risk, including heavy debt, ongoing losses, warrant liabilities and costly HPC expansion that strains flexibility and raises execution risk.
In contrast, RIOT offers a more balanced profile, with a lower EV per available megawatt and an experienced in-house development team that has completed more than 200 projects, reducing execution risk as its AI-focused expansion progresses.
Stock Performance
Image Source: Zacks Investment Research
Both TeraWulf and Riot Platforms' shares are currently overvalued, as suggested by a Value Score of F.
On the valuation front, TeraWulf trades at a forward 12-month price-to-sales (P/S) multiple of 13.71, more than double Riot Platforms’ 6.8. TeraWulf’s higher multiple reflects optimism but increases sensitivity to execution and financing risks, whereas Riot Platforms’ lower valuation offers a more conservative and appealing entry point.
P/S F12M Ratio
Image Source: Zacks Investment Research
Conclusion
While TeraWulf offers strong AI and HPC growth potential, its premium valuation, higher leverage and execution risk from capital-intensive expansion make the stock riskier. Riot Platforms stands out with greater scale, lower EV per megawatt, steadier cash generation from Bitcoin mining and a proven in-house development track record. With stronger financial flexibility to fund AI expansion and a more conservative valuation, Riot Platforms provides more durable upside and emerges as the better investment choice.
RIOT currently carries a Zacks Rank #3 (Hold), whereas WULF has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.