According to Bloomberg, TeraWulf, a Bitcoin mining company based in Easton, Maryland, is a vertically integrated miner that owns the power infrastructure to support its energy-intensive mining operations and plans to convert part of that infrastructure into artificial intelligence facilities. Its stock price has risen by more than 50% year-to-date.

Grizzly Research issued a report calling TeraWulf a "castle in the air," noting that CEO Paul Prager's private company Beowulf provides critical support to TeraWulf, including leasing facilities and maintenance services. The report also said TeraWulf's balance sheet is unsustainable and relies on market financing and highly dilutive and destructive debt transactions to fund its operations.

TeraWulf said in an email that it had reviewed the allegations and found them to be full of inaccuracies, misleading data and unfounded personal attacks. Representatives for Point72 did not immediately respond to a request for comment.