BofA Securities initiates TeraWulf at Buy with $34 price target, betting on AI pivot
Bank of America Securities has initiated coverage on TeraWulf with a Buy rating and a $34 price target, adding another bullish voice to a growing Wall Street chorus that sees the company’s transformation from Bitcoin miner to AI data center operator as the real deal.
The call lands at an interesting moment. TeraWulf, which trades on the Nasdaq under the ticker WULF, just crossed a milestone that makes the pivot look less like corporate aspiration and more like corporate reality: HPC revenue has officially overtaken Bitcoin mining revenue for the first time.
From pickaxes to processors
In Q1 2026, the company reported total revenue of $34 million. Of that, $21 million came from high-performance computing workloads. In English: more than 60% of TeraWulf’s revenue now comes from something other than Bitcoin mining.
The company’s flagship operation is the Lake Mariner facility in New York, which specializes in providing low-cost, predominantly zero-carbon power for both Bitcoin mining and HPC workloads.
Then there’s the Kentucky move. On May 26, TeraWulf acquired the Muskie Data Campus in Eastern Kentucky, a site with over 1 GW of potential AI and HPC capacity. That acquisition sent the stock jumping 13%.
Wall Street is paying attention
BofA isn’t the first firm to slap a Buy rating on TeraWulf this year. Jefferies has a price target of $32 on the stock. B. Riley has set its target at $35. Oppenheimer has also issued a bullish rating. The average analyst consensus has settled in the low-to-mid $30s range, with the overall sentiment landing somewhere between Moderate Buy and Strong Buy.
Bitcoin mining is inherently volatile. Revenue depends on Bitcoin’s price, network difficulty, halving cycles, and energy costs. HPC contracts, by contrast, tend to be longer-term arrangements with more stable cash flows. For a company that went public in December 2021 through a merger with IKONICS, this pivot represents a maturation of the business model.
TeraWulf CEO Paul Prager, an industry veteran in energy infrastructure, has been steering this transition.
What this means for investors
The investment case for TeraWulf now rests on a fundamentally different thesis than it did even a year ago. This is no longer primarily a Bitcoin mining bet. It’s a data center infrastructure play with a Bitcoin mining kicker.
TeraWulf isn’t the only former Bitcoin miner pivoting to AI. Companies like Core Scientific and Iris Energy have been making similar moves. While HPC now dominates TeraWulf’s revenue mix, the company hasn’t abandoned mining entirely. If Bitcoin continues to trade at elevated levels, that legacy business provides additional upside, though a sharp Bitcoin downturn would still impact part of the revenue base.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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