Rosenblatt Securities has reiterated its 'buy' rating on Terawulf Inc. (NASDAQ: WULF) following New York's recent decision to impose a moratorium on proof-of-work cryptocurrency mining operations. The ban, which came into effect earlier this month, targets energy-intensive mining activities that rely on carbon-based power sources, citing environmental concerns over high electricity consumption and carbon emissions.
Analysts at Rosenblatt noted that Terawulf's strategic positioning outside New York state — including its mining facilities in upstate New York that utilise hydroelectric power — may help the company sidestep the worst effects of the ban. The firm's analysts stated that Terawulf's diversified asset base and commitment to low-carbon energy sources provide a buffer against state-level regulatory shifts, though they cautioned that broader regulatory developments remain a watchpoint.
Terawulf shares have experienced volatility since the moratorium was announced, reflecting broader investor uncertainty around the future of proof-of-work mining in the United States. The company's stock closed at $4.12 on Wednesday, down 3.1% on the day but still up roughly 12% year-to-date. The wider Nasdaq Composite Index fell 0.8% on the same day, dragged lower by tech and crypto-exposed names.
For UK investors and pension holders, the development highlights the growing regulatory risks facing cryptocurrency-related equities. Many UK pension funds and institutional investors have indirect exposure to US-listed crypto miners through global equity funds and exchange-traded funds (ETFs). Analysts caution that further state-level crackdowns could weigh on the sector's profitability, though companies with clean energy credentials may fare better.
The New York moratorium is part of a broader international trend: the European Union has also introduced measures to increase transparency around crypto mining energy use, while China banned all crypto mining in 2021. Rosenblatt's decision to maintain its rating suggests that some analysts see current share prices as already pricing in these regulatory headwinds, but they advise investors to monitor state and federal policy developments closely.