[DigitalToday reporter Yoonseo Lee (이윤서)] A Bank of America (BoA) analyst gave a positive assessment of bitcoin miner TeraWulf's strategy to shift into artificial intelligence (AI) data centres.

Blockchain outlet U.Today reported on June 15 that BoA analyst Michael Funk initiated coverage of TeraWulf with a buy rating and a $34 price target.

In a research note titled "Goodbye bitcoin, hello AI data centre," Funk focused on TeraWulf's move to pivot from a business centred on bitcoin mining to an AI data centre infrastructure company.

The report's core point is the change in how infrastructure is used rather than bitcoin mining itself. TeraWulf is converting its existing mining equipment and power infrastructure into facilities that support high-performance computing (HPC)-based AI workloads. The strategy redeploys power, land and operating capabilities once used for bitcoin mining to meet demand for AI data centres.

Rising demand for AI data centres was also cited as a positive factor. TeraWulf aims to expand its core IT load capacity to 1.8 to 3.0 gigawatts (GW) by 2030. This is seen as a plan to position itself not only with its existing mining strategy but also as a large-scale AI infrastructure operator.

Google's involvement is also drawing market attention. Google agreed to guarantee related debt once the facility begins operations. This is serving as a link between demand for AI infrastructure, large technology companies and mining infrastructure firms.

Market reaction followed. TeraWulf shares have surged about 548 percent over the past year and are trading around $28. Bernstein also backed the AI pivot strategy, giving TeraWulf an "outperform" rating.

This trend is difficult to view as an issue limited to the crypto industry. Because securing power, equipment and land is central to bitcoin mining, the strategy of shifting the same assets to AI data centres shows where the boundaries between crypto infrastructure and AI infrastructure are converging.

Still, it remains to be seen whether the business pivot will quickly lead to stable profits. Expanding AI data centres requires large capital spending, long-term contracts and securing power. Even if mining infrastructure is converted into AI infrastructure, valuations may vary depending on utilisation rates and the ability to secure customers.

Ultimately, the TeraWulf case shows a trend of bitcoin mining firms seeking to avoid relying only on mining profitability. If demand for AI data centres continues to expand, companies with existing mining infrastructure could find new growth opportunities. Conversely, firms that cannot bear the pace of transition and the burden of financing may fall behind during a reshaping of the mining industry.

This BoA report shows that the centre of investment decisions is shifting from expanding bitcoin mining output to the ability to pivot into AI infrastructure. Whether TeraWulf's power assets and data centre expansion plans can be tied to actual AI demand is expected to be a key variable that will determine future share prices and corporate value.