BofA Backs TeraWulf’s Shift From Bitcoin Mining to AI Data Centers
Summary
- BofA said it views TeraWulf’s shift from Bitcoin mining to the AI data center business positively.
- BofA assigned TeraWulf a buy rating and set a $34 price target.
- The market sees business diversification using AI data centers and power infrastructure as a new growth driver for mining companies.
Forecast Trend Report by Period
Bank of America gave a positive assessment of Bitcoin miner TeraWulf’s shift into AI data centers.
Crypto media outlet Binance reported on June 15 that BofA laid out its view on TeraWulf in a report titled “Bye Bye Bitcoin, Hello AI Data Centers.”
Michael Funk, a BofA analyst, wrote that the bank views the company’s transition from its legacy Bitcoin mining business to AI data centers favorably. Given rapidly rising demand for AI-ready data centers, the strategy appears prudent, he added.
Funk projected that expanding demand for AI infrastructure will drive future growth in the data-center business.
BofA assigned TeraWulf a buy rating and set a $34 price target.
U.S. mining companies have recently been moving to diversify their businesses by using existing power infrastructure and sites as they target growth in the AI data-center market.
The market sees rising electricity demand from the expansion of the AI industry, along with increased investment in data centers, as a new growth driver for mining companies.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
