TeraWulf Inc. appoints Deloitte as new auditor By Investing.com

In a recent development, TeraWulf Inc., a company specializing in finance services and categorized under the ’09 Crypto Assets’ SIC, has announced a change in its certifying accountant. On Monday, the Audit Committee of the Board of Directors approved the engagement of Deloitte & Touche LLP as the new independent registered public accounting firm.

This decision, effective immediately, results in the dismissal of RSM US LLP, the company’s previous auditor. TeraWulf, which is listed on The Nasdaq Capital Market under the ticker symbol WULF, stated that RSM’s reports on the consolidated financial statements for the fiscal years ending December 31, 2023, and 2022 did not contain any adverse opinion or disclaimer of opinion.

The company disclosed that during the fiscal years ended December 31, 2023, and 2022, and the interim period through August 20, 2024, there were no disagreements with RSM on any matter of accounting principles or practices, financial statement disclosures, or audit scope or procedures.

However, there were material weaknesses in internal control over financial reporting, particularly related to the management’s review controls over noncash transactions and classification in the statements of cash flows.

TeraWulf has provided RSM with the disclosures made in this report and has requested that RSM furnish a letter to the SEC stating whether it agrees with the statements made. A letter from RSM, dated August 21, 2024, is included as an exhibit to the filing.

The company also noted that it did not consult Deloitte on any accounting principles or auditing matters during the fiscal years ended December 31, 2023, and 2022, nor in the subsequent interim period through August 20, 2024.

This announcement is based on a press release statement and contains forward-looking statements, which are subject to various factors, risks, uncertainties, and assumptions. TeraWulf cautions that these statements are not guarantees of future performance and that actual results may differ materially from those projected.

In other recent news, Terawulf Inc (NASDAQ:). has reported significant operational growth in its second quarter financial year 2024. The company’s revenue rose by 130.2% year-over-year to $35.6 million, mainly due to an increase in self-mining capacity. Terawulf has also expanded its infrastructure, increasing its total operational capacity to 245 megawatts (MW) with the completion of Building 4 at its Lake Mariner Facility.

Furthermore, the company is making advancements in the high-performance computing (HPC) and artificial intelligence (AI) sectors, committing an initial 2 MW block of power to support the latest generation of GPUs. Rosenblatt Securities has initiated coverage on Terawulf with a Buy rating, recognizing the company’s strategic expansion.

In contrast, Cantor Fitzgerald has maintained an Overweight rating, expressing confidence in Terawulf’s plans to expand its AI/HPC capacity by an additional 200 megawatts in the latter half of 2025. These recent developments reflect Terawulf’s commitment to both mining operations and its future HPC initiatives.

InvestingPro Insights

In light of TeraWulf Inc.’s recent auditor change, a look at the company’s financial health and market performance can provide investors with a clearer picture of its current standing. According to InvestingPro data, TeraWulf has a market capitalization of roughly $1.83 billion, reflecting significant investor interest in the company.

Despite a remarkable revenue growth of nearly 197.49% over the last twelve months as of Q2 2024, analysts have concerns about the company’s profitability. Specifically, the consensus is that TeraWulf will not be profitable this year, which aligns with the reported operating income margin of -14.24%.

Investors should also note the stock’s high volatility, as indicated by a substantial one-week total return of 41.49% and a contrasting one-month total return of -15.21%. This volatility is further underscored by the InvestingPro Tips, which highlight that TeraWulf’s stock price movements are quite volatile, and the stock generally trades with high price volatility.

Moreover, while analysts anticipate sales growth in the current year, three analysts have revised their earnings estimates downwards for the upcoming period. For those considering an investment in TeraWulf, these insights might be crucial for making informed decisions.

For a more comprehensive analysis, including additional InvestingPro Tips for TeraWulf, investors can refer to the detailed reports available on InvestingPro. As of now, there are 15 additional tips provided on the platform that can further guide investment strategies.

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