TeraWulf Aims for 3 GW AI Capacity; Bank of America Sees 26% Upside
WULF•Bank of America initiated TeraWulf coverage with a Buy rating and $34 price target, implying 26% upside on its AI data center pivot. It targets 1.8–3.0 GW IT capacity by 2030 and added a 1 GW Muskie campus to reach ~3.8 GW, while Q1 HPC revenue reached $21 M versus $13 M mining.
1. Coverage Initiation and Price Target
Bank of America initiated coverage on TeraWulf with a Buy rating and set a $34 price target, reflecting a 26% upside from current levels based on the company's transition to AI data center infrastructure.
2. Pivot to High-Performance Computing
TeraWulf shifted focus from Bitcoin mining to high-performance computing, targeting 1.8 to 3.0 GW of IT load capacity by 2030 and recently added the 1 GW Muskie Data Campus to its portfolio.
3. First-Quarter Revenue Mix
In the first quarter, HPC lease revenue reached $21 M, surpassing Bitcoin mining revenue of $13 M and marking the first quarter in which computing services overtook its legacy mining operations.
4. Infrastructure Growth and Future Developments
The company's total infrastructure inventory now stands at approximately 3.8 GW following recent acquisitions, and it is progressing on its Lake Mariner buildout in New York and tenant selection at its Justified Data site in Kentucky.
