TeraWulf (NASDAQ: WULF) shares rose Monday after BofA Securities initiated coverage with a Buy rating. The bank set a $34 price target for the stock. This outlook follows the company's transition from cryptocurrency mining to high-performance computing (HPC) and artificial intelligence infrastructure.
BofA analyst Michael Funk projects the company will build a digital infrastructure pipeline of 1.8 to 3.0 gigawatts. The firm expects the company to reach this capacity by 2030. The valuation is based on a multiple of 2028 revenue estimates.
TeraWulf’s revenue from HPC leasing now exceeds its Bitcoin mining income for the first time. The company expects to complete its Lake Mariner facility in New York by the end of 2026. Management is currently securing a customer for its Justified Data project in Kentucky.