Another solution is to keep the terseinits option and issue
\renewrobustcmd*{\bibinitdelim}{\addspace}
in your preamble.
MWE
\documentclass{article}
\usepackage{filecontents}
\begin{filecontents}{\jobname.bib}
@article{article1,
title={Journal Article},
author={A B Author and B C Buthor },
year={2014},
journal={Journal}
}
\end{filecontents}
\usepackage[backend=biber,firstinits,terseinits]{biblatex}
\renewrobustcmd*{\bibinitdelim}{\addspace}
\addbibresource{\jobname.bib}
\begin{document}
\nocite{*}
\printbibliography
\end{document}
Output:

\renewrobustcmd*{\bibinitperiod}{}(and maybe even\renewrobustcmd*{\bibinithyphendelim}{}) instead ofterseinits=true. – moewe Feb 16 '15 at 15:09