BofA Securities kicked off coverage of TeraWulf on Monday with a Buy rating and a $34 price target, pointing to the bitcoin miner’s pivot toward artificial intelligence infrastructure as the main draw for investors. The call marks the first analyst attention for the company since it began publicly touting its AI ambitions earlier this year.
Why the AI pivot matters
TeraWulf, best known for running low-cost bitcoin mining operations, has been redirecting some of its data-center capacity into high-performance computing for AI workloads. BofA’s analysts see that shift as a way to smooth out the revenue swings that come from mining alone — bitcoin prices can tank overnight, but long-term AI contracts offer a steadier income stream.
The timing fits a broader trend. Crypto miners with access to cheap power and existing facilities have become attractive partners for AI startups and cloud providers hungry for compute. TeraWulf isn’t the only one chasing this hybrid model, but BofA thinks its specific setup — low power costs in New York and Pennsylvania — gives it an edge.
What a $34 target implies
The $34 price target represents a substantial premium over TeraWulf’s current trading level, which has hovered in the mid-teens for much of the past month. That gap reflects the upside BofA sees if the AI infrastructure business gains traction and diversifies revenue beyond the notoriously volatile crypto mining sector.
Analysts at the firm didn’t provide a specific timeline for when that valuation might materialize. But they noted that investor interest has already picked up since TeraWulf announced its AI-related plans — a signal that the market is watching the transition closely.
TeraWulf’s next move
The company hasn’t disclosed any new AI partnership deals in recent weeks, though it confirmed earlier this year that it was in talks with potential customers. For now, the bullish call from BofA adds pressure on TeraWulf to deliver on its promises — signing contracts and showing revenue from the new business line.
Without a concrete deadline or a quarterly earnings beat, the stock’s near-term direction will likely hinge on those commercial updates. The next chance for investors to hear directly from management will come during the company’s next earnings call, the date of which hasn’t been announced.
