Bitcoin miners are emerging as an important part of the artificial intelligence buildout, according to a new research note from Bernstein analyst Gautam Chhugani. The firm initiated coverage
Bitcoin miners are emerging as an important part of the artificial intelligence buildout, according to a new research note from Bernstein analyst Gautam Chhugani.
The firm initiated coverage of two mining companies, TeraWulf and Cipher Digital, with "Outperform" ratings, calling them "the power landlords of AI" and arguing that miners are uniquely positioned to help solve one of the biggest challenges facing the AI industry: access to large amounts of ready-to-use power.
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As AI companies race to build new data centers, demand for electricity and computing infrastructure has surged.
Bernstein believes Bitcoin miners have an advantage because many already control large power portfolios and operate facilities that can be quickly converted for AI workloads.
Over the past two years, miners have signed 17 agreements worth more than $110 billion, providing approximately 6 gigawatts of power capacity to major technology companies including Google, Amazon, Microsoft, Nvidia and CoreWeave, Chhugani wrote, Investing.com reported.
According to the report, those agreements account for roughly 10% of all AI data centers currently under construction in the United States.
"Bitcoin miners remain best positioned to solve 'time to compute,'" Chhugani wrote.
The report points to the industry's planned 30-gigawatt power portfolio and its experience delivering what it describes as "warm powered shells", facilities where electricity infrastructure is already in place and ready for computing equipment to be deployed.
Bernstein expects AI-related revenue across the companies it covers to increase sharply over the coming years, projecting aggregate AI revenue to grow ninefold from $1.2 billion in 2026 to $10.7 billion by 2030.
TeraWulf, supported by a partnership with Fluidstack and Google, is expected to generate $1.7 billion in AI revenue by 2030, with EBITDA margins approaching 84%. Cipher Digital, whose customer base is primarily made up of hyperscalers, is projected to generate $1.2 billion in AI revenue by 2030, with EBITDA margins near 93%.
Bernstein set price targets of $36 for TeraWulf and $32 for Cipher Digital.
The report highlights a broader shift taking place across the technology sector.
As AI adoption expands, access to reliable power at scale is becoming increasingly important. For many companies building AI infrastructure, securing electricity has become just as critical as obtaining advanced chips.
That shift is creating new opportunities for Bitcoin miners, which spent years building power capacity for mining operations and now find themselves positioned to support the growing AI industry.
At the time of writing, TeraWulf stock (WULF) was trading at $25.61, while Cipher Digital stock (CIFR) was trading at $24.03.
Related: Why Bitcoin miners are quietly winning the energy fight, according to Bitkern's COO
