Investment bank Keefe, Bruyette & Woods (KBW) has upgraded Bitcoin mining company TeraWulf (WULF) to “outperform”, raising its price target from $9.50 to $24. This upgrade is based on TeraWulf’s move away from only Bitcoin mining toward AI and high-performance computing (HPC) infrastructure.
KBW believes investors are underestimating how important this business shift is. The bank says TeraWulf’s new strategy could drive strong growth through 2026 and 2027, especially as demand for AI data centers continues to rise.
TeraWulf currently has a 646-megawatt pipeline of potential HPC leasing projects, which KBW sees as a major advantage compared to other mining companies that rely only on Bitcoin mining.
At the time of writing, WULF shares were trading at $11.46, up 2.8% in the last 24 hours. In comparison, MARA Holdings fell 2.4%, while Riot Platforms rose 0.8%, showing mixed performance across mining stocks.
KBW estimates TeraWulf’s existing lease agreements could lead to very strong earnings growth, with EBITDA expected to grow rapidly between 2025 and 2027. This improvement could also increase the company’s valuation over time.
The bank highlighted TeraWulf’s AI-HPC strategy as the main driver of future profitability. The company has signed three major leasing deals with Fluidstack worth $6.7 billion, along with a $3.2 billion data center expansion project in New York.
WULF stock is still down 34.6% from its 52-week high, mainly due to broad selling pressure across Bitcoin mining stocks during the recent crypto market correction.
Meanwhile, Bitcoin is trading around $87,625, up 3% over the past 30 days. This shows that mining stock performance is now more influenced by business strategy than Bitcoin’s price alone.
By combining AI data center services with Bitcoin mining, TeraWulf aims to benefit from the growing demand for artificial intelligence computing while keeping exposure to crypto mining
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