TeraWulf Gets Wall Street Boost as Bitcoin Mining Pivot Strategy Gains Traction

Investment bank Keefe, Bruyette & Woods (KBW) has raised confidence in Bitcoin mining operator TeraWulf (WULF), upgrading the stock from ‘market perform’ to ‘outperform’ amid a major strategic shift. The upgraded outlook reflects expectations that the market has underestimated the company’s transition potential toward high-performance computing (HPC) leasing operations.

The most notable change in KBW’s assessment is the revised price target, which jumped significantly from $9.5 to $24 per share. This considerable uplift signals strong conviction about the company’s future earnings trajectory.

What’s driving the optimism? KBW points to TeraWulf’s planned expansion into HPC leasing, a sector increasingly attractive as demand for computing infrastructure accelerates. The bank projects the company will deploy a substantial 646-megawatt HPC leasing capacity by 2027. This diversification away from traditional Bitcoin mining into high-margin computing services is viewed as a major growth catalyst.

The transition timeline between 2026 and 2027 represents a critical inflection point. Rather than remaining solely dependent on Bitcoin mining profitability, which fluctuates with cryptocurrency prices and mining difficulty, TeraWulf would benefit from more stable, contractual revenue streams through HPC leasing arrangements with enterprise clients.

For investors tracking Bitcoin mining stocks, TeraWulf’s strategic pivot and KBW’s upgraded stance suggest the market is beginning to recognize the earnings potential hidden in infrastructure diversification. Whether the company can execute this ambitious transition by the stated timeline will likely determine whether the new $24 target holds up.