Summary
- Bernstein has begun coverage on TeraWulf (WULF) and Cipher Digital (CIFR) with ratings of "Outperform."
- Over the last two years, Bitcoin miners have secured 17 contracts totaling more than $110 billion, providing 6 GW of power to AI hyperscalers.
- Bernstein forecasts that AI revenue for its covered companies will increase ninefold, from $1.2 billion in 2026 to $10.7 billion by 2030.
According to a recent report from Bernstein, an investment firm under Société Générale, Wall Street analysts are increasingly recognizing Bitcoin miners as essential contributors to the artificial intelligence sector, dubbing them "power landlords." This study, released on Wednesday, highlights the significant role that these miners play in addressing AI's critical need for extensive, accessible power.
Bernstein's report initiates coverage on two mining firms—TeraWulf and Cipher Digital—both rated as "Outperform." The analysis suggests that these previously crypto-focused operators are uniquely equipped to alleviate one of AI's major challenges: the acquisition of large-scale, readily available electricity.
The scale of this transformation is evident in the figures. In just two years, miners have negotiated 17 deals worth over $110 billion, securing approximately 6 gigawatts of power for tech giants such as Google, Amazon, Microsoft, Nvidia, and CoreWeave. This represents about 10% of all AI data centers currently being built in the U.S.
Analysts noted, "Bitcoin miners remain best positioned to solve 'time to compute,'" referencing the industry's ambitious 30-gigawatt power portfolio and its expertise in providing what they refer to as "warm powered shells"—locations with operational electricity ready for computing equipment installation.
Bernstein anticipates that the total AI revenue for the companies it has under coverage will surge from $1.2 billion this year to $10.7 billion by 2030. TeraWulf, supported by collaborations with Fluidstack and Google, is projected to generate $1.7 billion in AI revenue by that time, boasting EBITDA margins of around 84%. Meanwhile, Cipher Digital, which primarily serves hyperscalers, is expected to achieve $1.2 billion in AI revenue with margins nearing 93%.
The colocation strategy adopted by these firms—leasing powered facilities through long-term, take-or-pay agreements—has garnered significant investor interest due to its stability. Bernstein highlighted that project financing markets are currently covering 75-85% of construction expenses for these facilities, with interest rates considerably lower than the returns generated by the contracts.
This report signifies a broader change in how investors and tech leaders perceive power infrastructure. With the escalating demand for AI computing, securing dependable large-scale electricity has become as crucial as the chips themselves, placing miners who have long pursued this resource in a favorable position.
As of now, shares of both TeraWulf (WULF) and Cipher Digital (CIFR) have dipped, but both have seen significant gains in 2026, with WULF up nearly 122% and CIFR increasing by approximately 69% during the same period.