Citigroup Launches TeraWulf Coverage with $36 Target for 32% Upside
C•Citigroup initiated coverage of TeraWulf Inc. with a Buy rating and a $36 price target, implying around 32% upside from Friday’s close. The bank highlighted TeraWulf’s pivot from Bitcoin mining to AI and HPC infrastructure and cited power and data-centre supply constraints as a catalyst for demand.
1. Coverage Initiation
Citigroup analysts initiated coverage of TeraWulf Inc. with a Buy rating and set a $36 price target, reflecting an implied upside of approximately 32% from the previous closing price. This move marks Citi’s first formal research report on the company.
2. Business Transformation
TeraWulf has shifted its focus from cryptocurrency mining to developing energy-rich facilities tailored for high-performance computing and AI workloads. The company plans to convert and upgrade industrial sites with existing grid power allocations to add 250–500 MW of capacity annually.
3. Market Conditions and Risks
The bank cited ongoing power transmission constraints and community resistance to new data centres as factors that could favour well-capitalized infrastructure providers like TeraWulf. Key risks include project execution timelines and funding needs amid rapid expansion.
