A leading US investment bank has upgraded its outlook on Bitcoin miner TeraWulf, pointing to a strategic shift that it believes the market has not fully recognized yet.
Keefe, Bruyette & Woods (KBW) said in a report released Wednesday that it has upgraded TeraWulf shares to “outperform,” up from “market perform,” and raised its price target sharply to $24 from $9.50. The reassessment reflects growing confidence in the company’s long-term business model, particularly its expansion beyond traditional Bitcoin mining.
KBW analysts highlighted what they see as a major transition underway at TeraWulf, with the company increasingly focusing on high-performance computing (HPC) leasing alongside its core mining operations. According to the bank, investors are underestimating the scale and timing of this shift, which is expected to gather momentum between 2026 and 2027.
The firm pointed to a robust development pipeline totaling 646 megawatts, net of confirmed HPC leasing agreements, as a key driver of future growth. This build-out strategy, KBW said, could materially reshape TeraWulf’s revenue mix and earnings profile over the next several years.
At the time of writing, TeraWulf shares were trading around $11.46, up roughly 2.8% over the past 24 hours. The move came as Bitcoin mining stocks showed mixed performance, with MARA Holdings falling about 2.4% and Riot Platforms edging up 0.8% over the same period.
KBW also emphasized that TeraWulf’s joint focus on Bitcoin mining and AI-driven HPC infrastructure has already begun to support operating profitability. The bank estimates that existing leasing agreements could drive a compound annual growth rate of more than 500% in EBITDA between 2025 and 2027, while also improving pre-tax returns on invested capital.
That outlook contrasts with recent market sentiment. TeraWulf shares remain well below their 52-week high, having fallen more than 34% since late October. KBW suggested the decline was largely due to broad selling across Bitcoin mining stocks, driven by concerns over softer mining fundamentals rather than company-specific issues.
In recent months, TeraWulf has announced several large-scale deals that underpin KBW’s bullish stance. In October, the company disclosed a $3.2 billion agreement tied to the expansion of a New York data center. It also secured three leasing deals with AI infrastructure provider Fluidstack, with a combined value of $6.7 billion.
