A major United States investment bank has upgraded its outlook for Bitcoin miner TeraWulf, citing expectations of a significant shift in its revenue mix.
Keefe, Bruyette & Woods said investors have not fully priced in the company’s longer-term growth strategy.
In a Wednesday research note, the bank upgraded TeraWulf shares to “outperform” from “market perform.”
The analysts also raised the company’s share price target to $24 from a previous level of $9.50.
Keefe, Bruyette & Woods said the revision reflects underappreciated changes expected between Bitcoin mining and high-performance computing leasing.
The bank expects the transition to accelerate during the 2026 to 2027 period.
Analysts highlighted a projected 646 megawatts of capacity linked to TeraWulf’s visible high-performance computing leasing pipeline through 2027.
The report said the company’s joint artificial intelligence and HPC strategy is already contributing to operating profitability.
We estimate existing leases drive a +505% 2025-2027 EBITDA CAGR and positive inflection in pre-tax ROIC, enabling multiple expansion on the current 3.8x EV/EBITDA multiple on our street high 2027 estimate.