KBW upgrades TeraWulf to outperform, sees AI pivot as catalyst for sharp growth

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email KBW upgrades TeraWulf to outperform, sees AI pivot as catalyst for sharp growth The bank raised its its price target on the shares to $24 from $9.50. By Will Canny , AI Boost | Edited by Oliver Knight Updated Dec 31, 2025, 1:51 p.m. Published Dec 31, 2025, 1:51 p.m. KBW upgrades TeraWulf to outperform, sees AI pivot as catalyst for sharp growth. (Shutterstock, modified by CoinDesk) What to know : KBW upgraded TeraWulf to outperform from market perform and lifted its price target from $9.50 to $24. The bank said AI and HPC leasing will eclipse bitcoin mining as the company's main earnings driver. Rapid EBITDA growth and valuation upside is expected as lease revenues scale. Investment bank KBW upgraded TeraWulf (WULF) to "outperform" from "market perform" while raising its price target to $24 from $9.50. The bank said the market is underestimating the earnings upside from the company’s shift away from bitcoin BTC $ 88,748.71 mining toward AI and high-performance computing (HPC) leasing. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . "We think investors underappreciate the magnitude of the BTC mining to HPC leasing mix shift in 2026-2027 and robust growth catalysts on 646 MW net of visible HPC leasing pipeline through 2027," wrote analyst Stephen Glagola in the Wednesday report. The shares were modestly higher in early trading Wednesday, at $11.18. Bitcoin miners have increasingly pivoted to hosting AI and high-performance computing hardware in their existing data centers to boost profitability. The analyst estimated that TeraWulf's existing leases could drive a 505% EBITDA compound annual growth rate (CAGR) from 2025 to 2027 and support multiple expansion from the stock’s current 13.8x EV/EBITDA valuation. His bullish view centers on the firm's 646 megawatt HPC leasing pipeline through 2027 and the rapid erosion of mining’s importance to the business. The bank expects HPC leasing to generate roughly two-thirds or more of TeraWulf's revenue in 2026 and the vast majority of contribution profit, with mining becoming largely immaterial by 2027. The report said execution risk is lower than investors assume, citing secured financing for major build-outs, a track record of delivery and supportive debt markets. Recent share price weakness reflects sector-wide selling in bitcoin miners rather than company-specific fundamentals. KBW said those discounts should narrow as lease revenues scale in 2026, driving cap-rate compression and valuation upside, with further optionality from new HPC deal announcements over the next year. Read more: AI trade isn’t dead: An inside look into Wall Street's lucrative data center deals TeraWulf Bitcoin Mining AI Kbw AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You State of the Blockchain 2025 By CoinDesk Research Dec 19, 2025 Commissioned by Input Output Group L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below. What to know : 2025 was defined by a stark divergence: structural progress collided with stagnant price action. 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