Bernstein initiated coverage on TeraWulf and Cipher Digital with 'Outperform' ratings, highlighting Bitcoin miners' unique position to solve AI's power bottleneck. Miners have signed 17 deals worth over $110 billion in two years, contracting 6 GW of power to tech giants like Google and Amazon, representing 10% of US AI data center construction. Bernstein projects AI revenue for its covered companies to grow from $1.2 billion in 2026 to $10.7 billion by 2030. TeraWulf, with a partnership involving Google, is expected to reach $1.7 billion in AI revenue by 2030 with 84% EBITDA margins; Cipher Digital, serving mostly hyperscalers, is projected at $1.2 billion with 93% margins. The colocation model using long-term take-or-pay contracts offers stability, with project financing covering 75-85% of construction costs. The report underscores a strategic shift: as AI computing demand surges, power infrastructure is as critical as chips, and miners' pre-built facilities are valuable assets.

Key facts

• Bernstein initiates coverage on TeraWulf (WULF) and Cipher Digital (CIFR) with 'Outperform' ratings.
• Bitcoin miners signed 17 deals worth over $110 billion, contracting 6 GW of power to AI hyperscalers.
• Bernstein projects AI revenue to grow from $1.2B in 2026 to $10.7B by 2030 across its coverage.
• TeraWulf expected to reach $1.7B AI revenue by 2030 with 84% EBITDA margins; Cipher Digital $1.2B with 93%.
• Project financing covers 75-85% of construction costs for colocation facilities with take-or-pay contracts.

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