TeraWulf, Cipher Digital Shares Plummet Amid Shift to Valuation Reset

Cipher Digital (NASDAQ:CIFR) and TeraWulf (NASDAQ:WULF) shares declined on Monday, despite analyst reports setting price targets above $30. Cipher Digital stock dropped 9%, while TeraWulf's share price fell by 4%. This decline extends a rough month for bitcoin-miner-turned-AI-infrastructure names.

Chardan initiated coverage of both companies with Buy ratings and price targets of $32, citing their position as first movers in the shift to AI data center infrastructure. Chardan's Bill Papanastasiou highlighted TeraWulf's four lease agreements secured and its management team skilled at navigating power-constrained markets.

However, Keefe Bruyette trimmed TeraWulf's price target to $30 from $33, while raising Cipher Digital's target to $32 from $27. Both firms remain positive on high-performance computing (HPC) colocation demand into Q2 2026 miner earnings but are selective on funding concerns and model-layer risk.

The broader market is rewarding contracted, investment-grade cash flows over speculative AI-lab exposure. Investors can watch for whether Cipher Digital shares stabilize near $21 and whether TeraWulf stock holds above its 200-day moving average of $17.45.