BofA Backs TeraWulf’s Shift From Bitcoin Mining to AI Data Centers
Summary
- Bank of America said it views TeraWulf’s shift into AI data centers positively.
- A BofA analyst said rising demand for AI infrastructure will serve as a growth driver for the company’s data center business.
- BofA assigned TeraWulf a buy rating and set a $34 price target.
Forecast Trend Report by Period
Bank of America gave a positive assessment of Bitcoin miner TeraWulf’s move into AI data centers.
The Block reported on June 15 that BofA laid out its view on TeraWulf in a report titled “Bye Bye Bitcoin, Hello AI Data Centers.”
BofA analyst Michael Funk wrote that the shift from the company’s existing Bitcoin mining business to AI data centers was a positive development. Given rapidly growing demand for AI-enabled data centers, he called it a smart strategy.
Funk added that rising demand for AI infrastructure will serve as a growth driver for the data center business.
BofA assigned TeraWulf a buy rating and set a $34 price target.
US mining companies have recently moved to diversify by using their existing power infrastructure and sites to tap growth in the AI data center market.
Market participants are increasingly viewing rising power demand from the expanding AI industry and broader investment in data centers as a new growth driver for mining companies.
