Can a Bitcoin-Abandoning Mining Company Reemerge as a Leader in AI Infrastructure?

▲ Bitcoin (BTC), cryptocurrency mining/ChatGPT-generated image ©

Bitcoin (BTC) mining companies are transforming beyond traditional cryptocurrency mining into new powerhouses in the artificial intelligence (AI) infrastructure market, drawing significant attention from Wall Street. Among them, TeraWulf (WULF) has rapidly shifted its business strategy, demonstrating remarkable growth and emerging as one of the most closely watched stocks of 2026.

According to investment media outlet The Motley Fool on February 15 (local time), as Bitcoin’s price plunged below $100,000, mining companies seeking revenue diversification began redirecting their massive computing power toward the AI sector. Smaller mining firms, capable of pivoting more swiftly than large corporations, are leading this trend, with TeraWulf—boasting a market capitalization of $7 billion—identified as a key beneficiary.

TeraWulf is leveraging the large-scale power infrastructure and advanced data centers previously used for Bitcoin mining to support cutting-edge AI innovation. This strategic shift has captured the attention of major investment banks, including Morgan Stanley. As investors flocked to identify undervalued AI infrastructure stocks, the company’s share price surged 52% year-to-date and more than 240% over the past year.

The company’s move has completely overturned the traditional valuation model for Bitcoin mining firms. In the past, a mining company’s value depended entirely on the amount of Bitcoin held on its balance sheet and expectations for future price appreciation. However, TeraWulf made the bold decision to sell a significant portion of its Bitcoin holdings to raise substantial capital for expanding its AI infrastructure.

As a result, TeraWulf now holds only a minimal amount of Bitcoin, meaning its upside potential may appear limited if evaluated solely as a mining company. However, the outlook changes if it is reassessed as an AI infrastructure company facing seemingly limitless demand. Morgan Stanley has taken a positive view of this shift, setting a price target of $37—more than double its current price.

TeraWulf plans to continue expanding its AI infrastructure capabilities through 2030. Having successfully transformed beyond the limitations of cryptocurrency mining into a core driver of the rapidly growing AI industry, the company’s upward trajectory is expected to continue as long as strong market demand for computing power persists.

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