Bernstein initiates on TeraWulf and Cipher Digital, sees 9x…

Bernstein has 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 grid-connected power assets represent a structural moat that new data center entrants cannot replicate. Analyst Gautam Chhugani's team dubbed them "the power landlords of AI."

Why it matters

The thesis is straightforward: as the primary bottleneck for new AI compute capacity shifts decisively to grid-connected power, miners sitting on brownfield sites, legacy grid positions, and multi-gigawatt pipelines are uniquely positioned. 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 two years, representing roughly 10% of U.S. data centers currently under construction.

For TeraWulf, Bernstein models AI revenue growing from $14 million in 2025 to $1.7 billion by 2030 (163% CAGR), with EBITDA margins reaching 84% at maturity. WULF's edge lies in its acquisition-driven redevelopment of legacy industrial sites — including former coal plants and an aluminum smelter — cutting buildout capex to $7.2 million per IT megawatt against a peer benchmark of $11–$13 million. Its 643 contracted megawatts with Fluidstack and Core42 represent roughly $13 billion in total contracted revenue.

Market impact

Cipher Digital's trajectory is equally steep: AI revenue from $19 million in 2026 to $1.2 billion by 2030 (180% CAGR), with EBITDA margins stabilizing at 93%.