KBW Upgrades TeraWulf to Outperform, AI Pivot Drives Growth
KBW upgrades TeraWulf to outperform, cites AI pivot as earnings catalyst
Investment bank KBW upgraded bitcoin miner TeraWulf (WULF) to “outperform” from “market perform” and raised its price target to $24 from $9.50, pointing to what it views as underappreciated earnings upside tied to the company’s shift toward AI and high-performance computing (HPC).
KBW said the market is not fully reflecting the potential impact of TeraWulf moving away from a business model primarily centered on bitcoin (BTC) mining and toward hosting AI and HPC hardware in its data center footprint.
The note comes as a broader trend has taken hold across the sector: bitcoin miners have increasingly pivoted to hosting AI and high-performance computing hardware in their existing data centers to boost profitability. The approach is often framed as a way to diversify revenue streams as mining economics fluctuate.
KBW’s analyst estimated that TeraWulf’s existing leases could drive a 505% EBITDA compound annual growth rate (CAGR) from 2025 to 2027, underscoring the bank’s view that the company’s AI/HPC strategy could materially change its earnings profile over that period.
The upgrade highlights how Wall Street’s evaluation of miners is evolving, with more attention being paid to infrastructure-based revenue opportunities—such as leasing space and power for compute workloads—alongside traditional bitcoin mining operations.
