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"A rising tide lifts all boats" is a popular piece of market jargon, but you can see why it sticks during rallies like the AI gold rush. Anyone and everyone is trying to get into the data center game today, including some former Bitcoin miners strategically pivoting to the next big thing. In particular, three companies stand out with this theme: Hut 8 Corp. (NASDAQ: HUT), TeraWulf Inc. (NASDAQ: WULF), and Core Scientific Inc. (NASDAQ: CORZ). Each has seen their company’s stock soar more than 100% year-to-date (YTD), but are these gains based on true future cash flows or just hype from a transcendent rally?

Pivoting From Bitcoin Miner to Data Center Landlord

All three companies share certain characteristics that appeal to AI hyperscalers. As former Bitcoin miners, these firms already own large buildings with scalable grid-connected electrical power. To tap into the AI rush, these companies have refurbished these locations with data center shells capable of supporting high-density GPU racks. Once the conversion is complete, these companies seek out tenants that bring in their own racks and build out the AI cloud infrastructure.

What makes the landlord comparison work is the nature of the deals these companies are signing with tenants. The agreements are typically triple-net and take-or-pay, meaning the tenants are responsible for taxes, insurance, and maintenance, and pay 100% of their bill whether they use all the capacity or not. The switch from Bitcoin mining to data center landlordship changes the mechanism by which these companies generate income. Instead of relying on volatile, commodity-linked revenue streams like mining, these firms can now boast dependable, recurring revenue through decade-long rent contracts. It was also a relatively easy transition, since Bitcoin mining and data center operations require many of the same skills and inputs, such as a constant power supply, a well-established foundation, and experience running dense computer labs.

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Hut 8, TeraWulf, and Core Scientific haven’t ridden the coattails of the AI rally; they’re active participants with REIT-style contracts. But each is beholden to different counterparties and timelines, and the Bitcoin overhang remains. A deeper dive into the numbers is necessary before committing any investment capital to these names.

Hut 8 Corp: High Value Contracts But Revenue Realization Still Far Out

Hut 8 has received some of the biggest headlines this year for its data center buildout, including a $4.25 billion senior secured note offering for its Beacon Point property in Texas. The Beacon Point data center is expected to provide up to 1,000 megawatts (MW) of capacity, with another potential 1,000 MW from the River Bend location in Louisiana. In Q1 2026, Hut 8 announced that the Beacon Point location had secured a 15-year triple-net lease valued at $9.8 billion, which could exceed $25 billion with escalators. The problem with this stock is timing. Neither River Bend nor Beacon Point is expected to be operational until 2027, and the company’s 16,000 Bitcoin token hoard is becoming an albatross. Q1 2026 earnings revealed a massive earnings-per-share (EPS) miss; the company lost $1.98 per share despite beating revenue projections by 40%. Bitcoin losses are weighing on the balance sheet, and the stock currently trades at 45 times sales.

Steady, secure revenue is coming, but the stock is priced for perfect execution. Both data centers are still under construction, and the decline in BTC is driving losses. The stock is up more than 150% YTD, and it might be time to take some profits. A bearish cross on the Moving Average Convergence Divergence (MACD) indicator has cast a cloud over the rally, which stands out since a bullish crossover heralded the biggest upswing in April.

TeraWulf: Strong Technicals, Weak Fundamentals, and High Short Interest

TeraWulf has an aggressive pipeline, and there’s evidence that its high-performance compute (HPC) transition is paying off. The company reported $21 million in HPC leasing revenue in Q1 2026, which was up more than 100% from Q4 2025. Some of its contracted tenants include Core42 and the Google-backed Fluidstack, which gives the stock a compelling narrative amidst the buildout. But TeraWulf has been issuing tons of equity to fund its buildout, including an $800 million stock offering in April. Shareholder dilution could be a reason why the stock carries 26% short interest as of the end of May.

The company only earned $34 million in revenue in Q1, down 1.1% year-over-year (YOY). Like Hut 8, the data center rent remains a future revenue stream, and the stock trades at 82 times sales. Despite the weak fundamentals, the stock chart is appealing. There’s strong price support at the 50-day moving average, and the Relative Strength Index (RSI) is in bullish territory without reaching overbought status. Traders seem to think the company can execute its plan flawlessly, but with shares up more than 140% YTD, there’s plenty of downside if missteps occur.

Core Scientific: Cheapest Valuation and Already Collecting Rent

Unlike Hut 8 and TeraWulf, Core Scientific is already collecting rent from a key AI player in CoreWeave Inc. (NASDAQ: CRWV). The company is providing CoreWeave with 243 MW of compute as of Q1 2026, with the remaining 347 MW scheduled to be online in early 2027. The total agreement is worth more than $10 billion, and Core Scientific raised the project’s cash gross-margin target to 80-85% from 75-80%. CORZ shares are also the cheapest from a valuation perspective at just 25 times sales. Q1 2026 also saw the company post a surprise EPS loss due to a $266 million mining impairment charge, but the Bitcoin mining operation is expected to be fully wound down by the end of 2026.

Core Scientific might have the cleanest fundamentals, but the chart is choppy at best. The bearish MACD cross earlier this month hints at fading momentum, and the price is struggling to surpass the June 2 all-time high of $29.05. However, CORZ has the strongest fundamentals, the smallest YTD gain (90%), and the only currently operational site. If one of these three stocks has upside not currently baked in, it's this one.

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