Aurelius Capital's Bold Bitcoin Bet: Why a Fund Is Doubling Down on TeraWulf Infrastructure

A New York-based investment fund has made a striking wager on the digital asset mining sector. On November 13, Aurelius Capital Management revealed that it had snapped up 450,000 shares of TeraWulf (NASDAQ: WULF) in the third quarter, worth approximately $5.1 million at quarter-end. The move underscores a growing conviction among institutional investors that cryptocurrency mining infrastructure—particularly energy-efficient operations—can deliver meaningful returns even after significant price rallies.

The Portfolio Tells a Story

What makes this move particularly notable is how it fits into Aurelius Capital’s broader portfolio strategy. The firm manages $55.2 million in U.S. equity holdings across nine positions, and TeraWulf now ranks as the fund’s fourth-largest position at 9.3% of reportable assets under management (AUM).

This isn’t a diversified, scattered approach. Instead, the fund’s top holdings reveal a highly concentrated thesis on bitcoin mining and related infrastructure:

• BITF (Nasdaq: BITF): $19 million (34.4% of AUM)
• CORZ (NASDAQ: CORZ): $8.4 million (15.3% of AUM)
• CIFR (NASDAQ: CIFR): $6.3 million (11.4% of AUM)
• WULF (NASDAQ: WULF): $5.1 million (9.3% of AUM)
• RIOT (NASDAQ: RIOT): $4.5 million (8.2% of AUM)

Nearly half of the fund’s capital sits in just two holdings, suggesting that managers believe the risk-reward calculus in the sector has fundamentally shifted. Rather than hedging bets across industries, they’re concentrated deeply into digital asset mining plays.

The Case for TeraWulf

The conviction behind this stake becomes clearer when examining TeraWulf’s recent performance and business trajectory. As of Friday, WULF shares traded at $12.52, representing a stunning 93% gain over the past year—a performance that dwarfs the S&P 500’s 16.5% return during the same period by 75 percentage points.

But the story goes deeper than stock price momentum. TeraWulf operates bitcoin mining facilities strategically positioned across New York and Pennsylvania, leveraging proprietary infrastructure to maximize operational efficiency. The company’s market capitalization has reached $5.2 billion, with trailing twelve-month revenue of $167.6 million.

Business Evolution Beyond Pure Mining

What likely caught Aurelius Capital’s attention is TeraWulf’s shift from commodity bitcoin mining toward a more stable, contract-based revenue model. In the third quarter, the company posted $50.6 million in revenue—an 87% year-over-year jump—powered not just by rising bitcoin prices but also by high-performance computing lease revenue, which contributed $7.2 million in its first reported quarter.

Management has locked in over $17 billion in long-term, credit-enhanced HPC contracts and secured more than $5 billion in completed long-term financings. This infrastructure-oriented approach smooths revenue volatility and creates predictable cash flows, a significant departure from pure commodity exposure to bitcoin price fluctuations.

The balance sheet reinforces the bullish case: TeraWulf held roughly $713 million in cash at quarter-end, providing substantial firepower to fund expansion and weather market volatility.

The Investment Thesis

Aurelius Capital’s concentrated position in TeraWulf and similar mining infrastructure names signals confidence that this sector can justify premium valuations even after its recent sharp run-up. The bet essentially assumes that digital infrastructure backed by multi-year, credit-enhanced contracts represents a more resilient investment than traditional commodity mining operations.

Whether this conviction pays off depends on several factors: sustained demand for bitcoin and high-performance computing capacity, the company’s ability to execute on expansion plans, and the broader regulatory environment for cryptocurrency infrastructure. But one thing is clear—institutional capital is flowing decisively into this corner of the market, and Aurelius Capital has positioned itself accordingly.