Bernstein opened coverage of two publicly traded Bitcoin miners, assigning Outperform ratings to TeraWulf and Cipher Digital, and made the case that miners possess a comparative advantage in supplying AI computing infrastructure. In a note released Thursday, analyst Gautam Chhugani highlighted the miners' combination of bulk power control and an ability to convert sites into operational data center capacity on a compressed timetable.
Chhugani said that, over the last two years, Bitcoin miners have contracted roughly 6 gigawatts of power capacity to hyperscalers and neocloud operators across 17 separate deals with an aggregate value exceeding $110 billion. According to Bernstein, those contracts account for about 10% of the AI data centers currently under construction.
"Bitcoin miners remain best positioned to solve 'time to compute' given their planned 30 GW power portfolio and operating ability to deliver 'warm powered shells' in time," Chhugani wrote, asserting that miners can rapidly provide partially finished, powered facilities that customers can outfit with compute hardware.
Firmwide AI revenue expectations
On a broader basis, Bernstein expects aggregate AI revenue across the companies it covers to expand sharply, forecasting a rise from $1.2 billion in 2026 to $10.7 billion by 2030 - roughly a ninefold increase.
TeraWulf and Cipher Digital: company specifics
TeraWulf received an Outperform rating with a $36 price target. Bernstein notes the company currently manages a 3.8 gigawatt power portfolio that was assembled through purchases of brownfield sites. The firm projects TeraWulf's AI-related revenue will climb from $14 million in 2025 to $1.7 billion by 2030, and that the associated EBITDA margins could reach approximately 84%. Bernstein also flagged that TeraWulf has about $1 billion in annual recurring revenue already contracted, a figure that includes a joint venture.
Cipher Digital was also given an Outperform rating, with a $32 price target. Bernstein reports Cipher carries an $11.4 billion order book, of which 67% is backed by hyperscalers. The company’s triple-net lease structure transfers operating costs fully to tenants, a contract design Bernstein says results in margins above 99% under that model. Bernstein projects Cipher Digital's AI revenue will reach approximately $1.2 billion by 2030, with EBITDA margins of approximately 93%.
Implications for power and data center markets
Bernstein's analysis ties the miners' opportunity directly to access to large-scale power and to the ability to deliver powered but lightly outfitted shells that customers can populate with AI hardware. The firm’s projections suggest material revenue upside for the miners it covers if demand for AI data center capacity develops as forecast.
Investors and market participants will likely watch contract execution, the pace of customer deployments into these powered shells, and how contractual structures allocate operating costs when assessing realized margins and cash flow durability.