Keefe Bruyette Upgrades TeraWulf (WULF) on Massive 505% Projected EBITDA Growth

TeraWulf Inc. (NASDAQ:WULF) is one of the most buzzing stocks to invest in according to hedge funds. On December 31, Keefe Bruyette analyst Stephen Glagola upgraded TeraWulf to Outperform from Market Perform with a price target of $24, up from $9.50, due to a significant market underestimation of the company’s pivot from Bitcoin mining to HPC. The firm projects that TeraWulf’s existing lease agreements will drive a massive 505% CAGR in EBITDA through 2027. Glagola maintains that the recent sector-wide sell-off has created a compelling risk/reward asymmetry, as HPC is set to generate over two-thirds of TeraWulf’s revenue by 2026, rendering legacy mining largely immaterial by 2027.

In other news, on December 18, TeraWulf Inc. (NASDAQ:WULF) and Fluidstack announced the successful pricing of project-level financing for their 168 MW HPC joint venture. Located at the Abernathy, Texas campus, the project will develop a next-gen, liquid-cooled AI data center with a gross power capacity of 240 MW (168 MW of critical IT load). The facility is designed to serve a global hyperscale AI platform and remains on track for commissioning in H2 2026.

The financial structure of the deal is notably robust, benefiting from an investment-grade credit profile. Google has provided approximately $1.3 billion in long-term lease-backing commitments through Fluidstack’s platform to support the project debt. This credit enhancement was a critical factor in the successful pricing, as it allows for more efficient capital formation. TeraWulf maintains a 51% majority ownership in the JV, which is projected to generate ~$9.5 billion in contracted revenue over a 25-year term. As of early 2026, TeraWulf’s total contracted HPC platform exceeds 510 MW, and the company plans to deploy an additional 250 MW to 500 MW of capacity annually.

TeraWulf Inc. (NASDAQ:WULF), together with its subsidiaries, operates as a digital asset technology company in the US.

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Disclosure: None. This article is originally published at Insider Monkey.