Investment banking company Keefe, Bruyette & Woods has turned more bullish on Bitcoin miner TeraWulf, citing what it sees as a looming shift in the company’s business mix that investors have yet to fully price in.
In a Wednesday report, KBW said it upgraded TeraWulf (WULF) to “outperform” from “market perform” and raised the company’s share price target to $24 from $9.50.
According to the bank, the reassessment was based on investors “underappreciat[ing] the magnitude of the BTC mining to HPC [high-performance computing] leasing mix shift in 2026-2027 and robust growth catalysts on 646MW net of visible HPC leasing pipeline through 2027.”
At time of writing, TeraWulf shares were trading at $11.46, having risen about 2.8% in the previous 24 hours. Shares of MARA Holdings (MARA), another significant Bitcoin (BTC) miner, dropped about 2.4% over the same period, while Riot Platforms (RIOT) rose 0.8%.
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In addition to BTC mining, KBW said TeraWulf’s joint AI-HPC strategy had been driving the company’s operating profitability.
“We estimate existing leases drive a +505% 2025-2027 EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] CAGR [Compound Annual Growth Rate] and positive inflection in pre-tax ROIC [Return on Invested Capital], enabling multiple expansion on the current 3.8x EV/EBITDA multiple on our street high 2027 estimate,” said KBW, adding:
“We think the primary culprit of WULF’s -34.6% decline from its 52-week high on 10/28 has been the largely indiscriminate selling of Bitcoin mining stocks […] against weakening Bitcoin mining fundamentals.”
In October, TeraWulf reported a $3.2 billion deal as part of a data center expansion for one of its New York facilities. The company also secured three lease agreements with AI infrastructure provider Fluidstack, worth a combined $6.7 billion.
According to data from Nansen, BTC price was $87,625 at the time of writing, having risen 3% in the previous 30 days.
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