TD Cowen Initiated Coverage of TeraWulf

The investment firm assigned a $21 price target as the company shifts its focus toward AI data centers.

Updated on Oct. 12, 2026 in Data Centers

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TD Cowen has initiated coverage of TeraWulf with a Buy rating and a $21 price target. The firm is bullish on the company as it transitions its former Bitcoin mining sites into AI data centers.

Why it matters

Investors may be undervaluing the company's AI business by applying a conservative 9% cap rate to its data center leases. This initiative aims to highlight the potential for richer valuations as demand for AI infrastructure grows.

TeraWulf leverages converted Bitcoin mining infrastructure to host data center tenants like Fluidstack, with Google guaranteeing portions of those lease payments. The company currently utilizes a 9% cap rate for valuation, significantly impacting its market outlook.

The players

TeraWulf

This company specializes in digital infrastructure and is currently converting its Bitcoin mining facilities into data centers for AI.

TD Cowen

This is a financial services firm that recently began providing analyst coverage on TeraWulf stock.

Google

This multinational technology company maintains a stake in TeraWulf via warrants and provides financial guarantees for data center tenants.

Morgan Stanley

This global financial institution has set a $65 price target for TeraWulf, expressing a more bullish outlook than many of its peers.

Fluidstack

This firm operates as a data center tenant within TeraWulf facilities and relies on Google-backed lease agreements.

The details

TeraWulf is retooling its existing infrastructure to capitalize on the AI boom by leasing capacity to cloud providers. Google maintains a strategic interest in the firm, holding warrants for an estimated 8% stake.

WULF stock closed at $13.77 on October 9, 2026.
TD Cowen initiated its coverage of TeraWulf on October 12, 2026.

The Tech Race

TeraWulf represents a growing subset of firms pivotally repurposing high-power Bitcoin mining sites to meet the massive energy demands of modern AI data centers. This transition marks a departure from pure-play crypto operations as companies race to secure capacity for cloud infrastructure providers.

For investors, the initiation of coverage provides a new perspective on the potential upside of companies repurposing existing energy assets. However, traders should note that the stock remains volatile, currently trading 54% below its 52-week high of $29.84.

The takeaway

The pivot from crypto mining to AI infrastructure suggests that energy capacity is becoming a more valuable asset than the mining operations themselves. Investors should watch whether these lease guarantees provide long-term stability for the company's revamped business model.