According to Bloomberg, Bitcoin mining company TeraWulf, based in Easton, Maryland, is a vertically integrated miner that owns the power infrastructure necessary for its energy-intensive operations. The company is also planning to convert some of its infrastructure into facilities for artificial intelligence. TeraWulf's shares have risen by more than 50% year to date.

Following the disclosure of Point72's stake in TeraWulf, Grizzly Research published a report on Thursday labeling TeraWulf as a “house of cards.” The report highlighted that TeraWulf's CEO, Paul Prager, relies on his private company, Beowulf, to provide critical support to TeraWulf, including leasing facilities and providing maintenance and upkeep. The report further claimed that TeraWulf has an unsustainable balance sheet and has depended on at-the-market financings and highly dilutive and destructive debt deals to fund its operations.

In response, TeraWulf stated in an email that it has reviewed Grizzly Research's claims and believes they are filled with inaccuracies, misrepresented data, and unfounded personal attacks. A representative for Point72 did not immediately respond to a request for comment.