TeraWulf's (WULF) update on its recently acquired brownfield sites in Kentucky and Maryland will be closely watched, Oppenheimer said Tuesday in a Q4 preview.

The company is scheduled to report Q4 results on Thursday.

The firm said it will be looking for details on site demand, construction timelines, and funding, specifically for Kentucky, which may come online sooner.

Channel checks indicate strong interest as capacity constraints will possibly last about 3 years, the firm said. Recent acquisitions doubled TeraWulf's inventory capacity to 2.8 gigawatts, Oppenheimer said, valuing the inventory at about $3 million per megawatt.

For every megawatt the company builds, it can create $10 million in equity value, adding nearly $5 billion to firm value relatively quickly, Oppenheimer said, adding that its analysis supports TeraWulf's value in the $10 billion to $15 billion range regardless.

While execution remains an industry-wide risk, the firm said TeraWulf has a structural time-to-market advantage due to its approach of repurposing sites with existing power, strong ties with local governments and utilities, and access to the grid.

Oppenheimer maintained an outperform rating on TeraWulf with a $20 price target.

Shares of the company rose more than 4% in recent Wednesday trading.

Price: 18.39, Change: +0.83, Percent Change: +4.70