Wall Street brokerage Bernstein has initiated coverage on Bitcoin miners TeraWulf (WULF) and Cipher Digital (CIFR) with Outperform ratings and price targets of $36 and $32, respectively, framing both companies as emerging infrastructure platforms for artificial intelligence. The analysts, led by Gautam Chhugani, label the miners “the power landlords of AI,” highlighting their strategic advantage in having brownfield sites, legacy grid connections, and multi-gigawatt power pipelines at a time when access to grid-connected power has become the main bottleneck for AI compute expansion.
The report notes that Bitcoin miners have signed 17 deals worth over $110 billion in the past two years alone, contracting out roughly 6 gigawatts of power to hyperscalers and neocloud operators. This represents about 10% of all U.S. data centers currently under construction. Bernstein projects aggregate AI revenue across its miner coverage to grow ninefold from $1.2 billion in 2026 to $10.7 billion by 2030.
For TeraWulf, AI revenue is expected to surge from just $14 million in 2025 to $1.7 billion by 2030 at a compound annual growth rate of 163%, with EBITDA margins reaching approximately 84%. The company has contracted 643 gross megawatts to Fluidstack and Core42 under long-term agreements spanning 10–25 years, worth roughly $13 billion in total contracted revenue. Its edge lies in redeveloping legacy industrial sites—including a former coal-fired power plant, a retired coal plant, and an aluminum smelter—cutting buildout capex to $7.2 million per IT megawatt versus an industry benchmark of $11–13 million.
Cipher Digital, meanwhile, is projected to see AI revenue climb from $19 million in 2026 to $1.2 billion by 2030 at a 180% CAGR, with EBITDA margins stabilizing at 93%. Its order book of 495 IT megawatts across $11.4 billion in total revenue is now 67% backed by investment-grade hyperscalers like AWS and an undisclosed third partner. The shift to triple-net lease structures has boosted net operating margins toward 100% and enabled tighter project financing—Cipher’s latest AWS deal raised $2 billion at 6.125%, a full 100 basis points lower than its earlier Barber Lake facility.
Bernstein’s top sector pick remains IREN (Outperform, $100 target) for its vertically integrated cloud model and partnerships with Microsoft and NVIDIA. Other rated miners include Core Scientific ($32), Riot Platforms ($30), CleanSpark ($24), and MARA (Market-Perform, $17). The note flags counterparty concentration as a key risk, with Fluidstack accounting for 91% of WULF’s contracted revenue and AWS roughly 48% for CIFR. Grid approval hurdles and capital-intensive buildout requirements also pose downside risks. While shares of both companies dipped on the day of the report, TeraWulf has surged nearly 122% year-to-date and Cipher Digital about 69%.
