Bernstein Lifts Targets as Bitcoin Miners Pivot Toward AI Data Centers

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Bitcoin miners have entered a new phase of relevance â€” this time as an essential part of the artificial intelligence (AI) value chain.

According to a note from Wall Street broker Bernstein on Monday, minersâ€™ vast power infrastructure and large-scale facilities have become critical to AI data centers, which are now viewed as the biggest execution bottleneck for the rapidly expanding AI industry.

Bitcoin Miners Shift Focus From BTC Price to Power Assets

Bernsteinâ€™s analysts, led by Gautam Chhugani, noted that every U.S.-listed bitcoin miner covered by the firm has pivoted away from betting on bitcoinâ€™s price toward maximizing the value of their power assets. This strategic shift is driving miners to capitalize on their energy capacity, positioning them as indispensable infrastructure providers to AI operators.

The firm has also moved away from its traditional discounted cash flow (DCF) model, adopting instead a sum-of-parts valuation approach. This combines minersâ€™ bitcoin holdings, mining EBITDA, AI co-location and cloud revenues, and the potential value of power sites designated for AI data centers â€” applying a conservative $3 million per megawatt (MW) multiple to those sites.

Bernstein Lifts Price Targets for Leading Miners

The brokerage raised its price target for several U.S.-listed bitcoin mining companies, reflecting their growing AI exposure.

Core Scientificâ€™s (CORZ) target was lifted to $24 from $17, as it pivots toward high-performance computing (HPC) colocation and aims to deliver about 590 megawatts of IT load by early 2027.

Core Scientific share price (Source: Google Finance)

Bernstein also highlighted that shareholdersâ€™ rejection of the CoreWeave deal gives Core Scientificâ€™s management more flexibility to optimize value, hinting at a new partnership expected in the fourth quarter.

Riot Platforms (RIOT) saw its target raised to $25 from $19, reflecting the AI potential of its 1-gigawatt Corsicana site. CleanSpark (CLSK) was also upgraded to $24 from $20 as it moves toward a hybrid bitcoin-AI business model through new hires and partnerships.

Market Re-Rating of Bitcoin Miners

Bernstein rates IREN, CORZ, RIOT, and CLSK as â€œoutperform,â€ stating that bitcoin miners with active or potential AI contracts are being re-rated by the market as key enablers of next-generation computing infrastructure.

Following the announcement of IRENâ€™s AI cloud deal with Microsoft, mining stocks rallied in premarket trading. IREN surged 21% to around $60.75, Core Scientific gained 6.04% to $22.84, Riot climbed 3% to $20.38, and CleanSpark rose 3.6% to $18.44.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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