Bernstein initiated coverage on Bitcoin mining companies TeraWulf and Cipher Digital with 'Outperform' ratings in a research note published Wednesday, highlighting miners' transformation into 'power landlords' for the artificial intelligence industry. The investment firm, owned by Société Générale, stated that miners have signed 17 deals worth over $110 billion in the past two years, contracting 6 gigawatts of power to AI hyperscalers including Google, Amazon, Microsoft, Nvidia, and CoreWeave. Bernstein analysts attributed this positioning to the AI industry's pressing power access bottleneck, noting that miners' contracted power represents approximately 10% of all AI data centers currently under construction in the United States.
Bernstein Initiates Coverage on TeraWulf and Cipher Digital with Outperform Ratings
Bernstein assigned 'Outperform' ratings to TeraWulf (WULF) and Cipher Digital (CIFR) in its coverage initiation. The analysts wrote that 'Bitcoin miners remain best positioned to solve 'time to compute,'' citing the industry's planned 30-gigawatt power portfolio and operational experience delivering 'warm powered shells'—facilities with electricity already flowing, ready for computing hardware to move in. The report positions former crypto-centric operators as uniquely capable of addressing large-scale, ready-to-use power access for AI infrastructure.
Bitcoin Miners Contract 6 GW of Power to AI Hyperscalers Through 17 Deals
Bitcoin miners struck 17 deals worth more than $110 billion over the past two years, contracting out roughly 6 gigawatts of power to companies including Google, Amazon, Microsoft, Nvidia, and CoreWeave. This contracted capacity accounts for about 10% of all AI data centers currently under construction in the United States. The companies favor a colocation model, leasing powered facilities under long-term, take-or-pay contracts. Bernstein noted that project financing markets now cover 75-85% of construction costs for these facilities, at interest rates the report states are well below the returns the underlying contracts generate.
Bernstein Projects AI Revenue Growth from $1.2 Billion to $10.7 Billion by 2030
Bernstein projects that the aggregate AI revenue of the companies it covers will climb from $1.2 billion in 2026 to $10.7 billion by 2030. TeraWulf, anchored by a partnership with Fluidstack and Google, is projected to reach $1.7 billion in AI revenue by 2030, with EBITDA margins approaching 84%. Cipher Digital, whose client base is majority hyperscaler, is projected to hit $1.2 billion in AI revenue with margins near 93% by that year. The report attributes investor attention to the stability of the colocation model's long-term contracts.
TeraWulf and Cipher Digital Shares Post 122% and 69% Gains in 2026
Shares in TeraWulf (WULF) and Cipher Digital (CIFR) were down on the day of the report publication. Both stocks have posted substantial gains in 2026, with WULF up nearly 122% and CIFR rising about 69% during that period. The report reflects what Bernstein describes as a broader shift in how investors and technology executives are thinking about power infrastructure, stating that securing reliable electricity at scale has become as strategically important as the chips themselves.
FAQ
What did Bernstein announce about TeraWulf and Cipher Digital?
Bernstein initiated coverage on TeraWulf (WULF) and Cipher Digital (CIFR) with 'Outperform' ratings in a research note published Wednesday, highlighting the companies' positioning as power providers to the AI industry.
How much power have Bitcoin miners contracted to AI companies?
Bitcoin miners have signed 17 deals worth over $110 billion in the past two years, contracting 6 gigawatts of power to AI hyperscalers including Google, Amazon, Microsoft, Nvidia, and CoreWeave, representing approximately 10% of AI data centers under construction in the United States.
What are Bernstein's revenue projections for miners' AI business?
Bernstein projects aggregate AI revenue across its coverage to grow from $1.2 billion in 2026 to $10.7 billion by 2030, with TeraWulf expected to reach $1.7 billion and Cipher Digital $1.2 billion in AI revenue by that year.
