A major US investment bank has issued a strong vote of confidence in Bitcoin miner TeraWulf, upgrading the stock and sharply increasing its price target. The move reflects growing optimism around the company’s long-term strategy, particularly its expansion beyond Bitcoin mining into high-performance computing (HPC) and AI-focused data center leasing.
Keefe, Bruyette & Woods (KBW), an investment banking firm, upgraded TeraWulf (WULF) shares to “outperform” from “market perform” and raised its price target to $24, up from $9.50. At the time of writing, TeraWulf stock was trading around $11.46, up roughly 2.8% over the past 24 hours.
KBW Sees Major Shift From Bitcoin Mining to AI and HPC
KBW’s bullish outlook is based on what it believes investors are missing: the scale of TeraWulf’s upcoming transition from pure Bitcoin mining toward HPC and AI infrastructure leasing. According to the bank, this shift is expected to accelerate between 2026 and 2027, supported by a visible pipeline of 646 megawatts (MW) of capacity tied to HPC leasing agreements through 2027.
The bank argues that the market has not fully priced in how meaningful this change could be for TeraWulf’s revenue mix and profitability. While Bitcoin mining remains a core business, AI and HPC workloads typically offer longer-term contracts and more stable cash flows, which could improve the company’s valuation over time.
During the same trading window, other major Bitcoin miners showed mixed performance. Shares of MARA Holdings fell about 2.4%, while Riot Platforms gained roughly 0.8%, highlighting TeraWulf’s relative strength following the upgrade.
Financing, Data Center Expansion, and Profitability Outlook
KBW also pointed to TeraWulf’s recent financing and expansion activity as key drivers behind its optimism. The firm estimates that existing HPC leases alone could generate a 505% compound annual growth rate (CAGR) in EBITDA between 2025 and 2027, along with a positive inflection in pre-tax return on invested capital (ROIC).
This improved profitability could support multiple expansion from TeraWulf’s current 3.8x EV/EBITDA, based on KBW’s 2027 projections. The bank suggested that the stock’s 34.6% decline from its 52-week high in late October was largely due to broad selling across Bitcoin mining stocks, rather than company-specific weakness.
TeraWulf has been actively expanding its infrastructure. In October, the company announced a $3.2 billion data center expansion deal at one of its New York facilities. It also secured three major lease agreements with AI infrastructure provider Fluidstack, with a combined value of $6.7 billion, further strengthening its AI and HPC positioning.
While Bitcoin prices have remained volatile, with BTC trading near $87,600 recently, KBW’s report suggests that TeraWulf’s future performance may become increasingly driven by AI and data center demand rather than crypto mining alone.
