TheBlock
Bernstein initiated coverage of TeraWulf (WULF) and Cipher Digital (CIFR) with Outperform ratings and price targets of $36 and $32 respectively, framing both bitcoin miners as emerging AI infrastructure platforms whose brownfield power positions give them a structural edge over greenfield data centre entrants. The note, led by analyst Gautam Chhugani, dubbed them "the power landlords of AI" and projected aggregate AI revenue across bitcoin miner coverage to expand ninefold from $1.2 billion in 2026 to $10.7 billion by 2030.
Why it matters
The thesis reframes bitcoin miners as power-first real estate plays rather than crypto-native compute businesses. Miners have contracted 6 gigawatts of capacity to hyperscalers and neocloud operators across 17 deals worth more than $110 billion over the past two years, Bernstein said — roughly 10% of US data centres currently under construction. With grid-connected power now the binding constraint on new AI compute buildout, the legacy industrial sites, existing grid interconnects, and multi-gigawatt power pipelines that miners assembled for bitcoin hashing translate directly into HPC hosting capacity new entrants cannot replicate on a comparable timeline.
Market impact
For TeraWulf, Bernstein sees AI revenue scaling from $14 million in 2025 to $1.7 billion by 2030, a 163% CAGR, with EBITDA margins reaching 84% at maturity. WULF has 643 gross megawatts contracted to Fluidstack and Core42 across 10-25 year deals, representing roughly $13 billion in contracted revenue, and Bernstein values the stock at 21x forward EV/EBITDA on 2030 steady-state EBITDA to reach the $36 target, with optionality on new HPC contracts at the 480MW Kentucky campus sitting outside the base case.
For Cipher Digital, the projection is AI revenue rising from $19 million in 2026 to $1.2 billion by 2030 at a 180% CAGR, with 93% EBITDA margins. CIFR has 495 IT megawatts contracted across $11.4 billion of total revenue, and roughly 67% of the order book is now backed by investment-grade hyperscalers including AWS, up from an earlier book anchored by neocloud intermediaries.
Frequently asked questions
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Why is Bernstein calling bitcoin miners 'power landlords of AI'?
The framing reflects a thesis that grid-connected power has become the binding constraint on new AI compute buildout. Bitcoin miners already control brownfield sites, legacy grid interconnects, and multi-gigawatt power pipelines assembled for hashing — assets that greenfield data centre entrants cannot replicate on a…
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What price targets did Bernstein set on WULF and CIFR?
Bernstein initiated both names at Outperform: TeraWulf (WULF) with a $36 price target and Cipher Digital (CIFR) with a $32 target. The WULF target is based on 21x forward EV/EBITDA applied to 2030 steady-state EBITDA, while optionality on new HPC contracts at the 480MW Kentucky campus sits outside the base case.
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How large is the bitcoin miner AI hosting opportunity according to Bernstein?
Bernstein projects aggregate AI revenue across its bitcoin miner coverage to expand ninefold, from $1.2 billion in 2026 to $10.7 billion by 2030. Across the sector, miners have already contracted 6 gigawatts of capacity to hyperscalers and neocloud operators across 17 deals worth more than $110 billion over the past…
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What is TeraWulf's contracted AI revenue pipeline?
TeraWulf has 643 gross megawatts contracted to Fluidstack and Core42 under deals spanning 10 to 25 years, representing approximately $13 billion in total contracted revenue, with about 91% tied to Fluidstack. Bernstein projects TeraWulf's AI revenue to grow from $14 million in 2025 to $1.7 billion by 2030, a 163% CAGR.
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What are the main risks Bernstein flags for WULF and CIFR?
Counterparty concentration is the principal near-term risk: Fluidstack accounts for approximately 91% of WULF's contracted revenue and AWS represents approximately 48% of CIFR's. Bernstein also flags ongoing grid approval processes — roughly 2 gigawatts of Cipher's pipeline remains unapproved — and the broader…
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