Funding banking firm Keefe, Bruyette & Woods has turned extra bullish on Bitcoin miner TeraWulf, citing what it sees as a looming shift within the firm’s enterprise combine that buyers have but to totally value in.
In a Wednesday report, KBW stated it upgraded TeraWulf (WULF) to “outperform” from “market carry out” and raised the corporate’s share value goal to $24 from $9.50.
In accordance with the financial institution, the reassessment was primarily based on buyers “underappreciat[ing] the magnitude of the BTC mining to HPC [high-performance computing] leasing combine shift in 2026-2027 and strong development catalysts on 646MW internet of seen HPC leasing pipeline by 2027.”
At time of writing, TeraWulf shares had been buying and selling at $11.46, having risen about 2.8% within the earlier 24 hours. Shares of MARA Holdings (MARA), one other vital Bitcoin (BTC) miner, dropped about 2.4% over the identical interval, whereas Riot Platforms (RIOT) rose 0.8%.
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Securing financing for build-outs driving bullish views?
Along with BTC mining, KBW stated TeraWulf’s joint AI-HPC technique had been driving the corporate’s working profitability.
“We estimate current leases drive a +505% 2025-2027 EBITDA [Earnings Before Interest, Taxes, Depreciation, and Amortization] CAGR [Compound Annual Growth Rate] and optimistic inflection in pre-tax ROIC [Return on Invested Capital], enabling a number of enlargement on the present 3.8x EV/EBITDA a number of on our avenue excessive 2027 estimate,” stated KBW, including:
“We expect the first offender of WULF’s -34.6% decline from its 52-week excessive on 10/28 has been the largely indiscriminate promoting of Bitcoin mining shares […] towards weakening Bitcoin mining fundamentals.”
In October, TeraWulf reported a $3.2 billion deal as a part of an information heart enlargement for considered one of its New York services. The corporate additionally secured three lease agreements with AI infrastructure supplier Fluidstack, value a mixed $6.7 billion.
In accordance with information from Nansen, BTC value was $87,625 on the time of writing, having risen 3% within the earlier 30 days.
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