Bernstein highlights Bitcoin miners' crucial role in AI growth, rating TeraWulf and Cipher Digital as "Outperform" and forecasting significant revenue increases.
Bitcoin Miners Recognized as Vital to AI Expansion, Says Bernstein
Bernstein, an investment firm under Société Générale, has released a report highlighting the growing importance of Bitcoin miners in the artificial intelligence (AI) sector. The firm has initiated coverage on TeraWulf (WULF) and Cipher Digital (CIFR), both receiving "Outperform" ratings. This shift underscores the miners' role as "power landlords" capable of addressing AI's substantial energy requirements.
In the past two years, Bitcoin miners have secured 17 contracts worth over $110 billion, providing 6 gigawatts of power to major tech companies, including Google, Amazon, Microsoft, Nvidia, and CoreWeave. This amount constitutes about 10% of the AI data centers currently under development in the U.S.
Bernstein forecasts a dramatic increase in AI revenue for the companies it covers, predicting growth from $1.2 billion in 2026 to $10.7 billion by 2030. TeraWulf, benefiting from partnerships with Fluidstack and Google, is expected to generate $1.7 billion in AI revenue, with impressive EBITDA margins of around 84%. Cipher Digital, focusing on hyperscalers, is projected to reach $1.2 billion in AI revenue, boasting margins close to 93%.
The report emphasizes the miners' unique ability to provide ready-to-use electricity for computing facilities, which is critical for the industry’s ambitious power goals. Analysts noted that Bitcoin miners are ideally positioned to address the challenge of "time to compute," leveraging their extensive 30-gigawatt power portfolio and capabilities in offering "warm powered shells"—locations equipped with operational electricity for equipment installation.
Investors have shown interest in the colocation strategy these firms employ, which involves leasing powered facilities under long-term, take-or-pay contracts. Bernstein pointed out that current project financing markets cover 75-85% of construction costs, with interest rates lower than the returns from these contracts. This trend reflects a broader shift in how investors view power infrastructure amidst the rising demand for AI computing.
Although shares of TeraWulf and Cipher Digital have recently dipped, both companies have experienced substantial gains in 2026, with WULF increasing by nearly 122% and CIFR by approximately 69% during that period.
