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Bitcoin Miners are now an integral part of the artificial intelligence (AI) value chain, Wall Street broker Bernstein said in a note on Monday as it updates its model for the sector.
The broker argued that the power infrastructure and large-scale facilities of miners have become critical for AI data centers, now seen as the biggest execution bottleneck for the fast-growing industry.
Every US-listed bitcoin miner covering the broker has pivoted towards maximizing the value of its power assets rather than betting on the price of bitcoin, analysts led by Gautam Chhugani wrote.
The firm’s analysts abandoned their discounted cash flow (DCF) methodology in favor of a sum-of-the-parts valuation, combining miners’ bitcoins, mining EBITDA, AI co-location and cloud revenues, and the potential value of energy sites destined for AI data centers – using a conservative $3 million per megawatt (MW).
Bernstein raised his price target for Core Scientific (CORZ) to $24 from $17, citing the company’s pivot toward high-performance computing (HPC) colocation and its plan to deliver about 590 megawatts of IT load by early 2027.
The report noted that shareholders’ rejection of the CoreWeave deal gives management more room to optimize value and hinted at a new partnership expected in the fourth quarter.
Riot Platforms (RIOT) also saw its target raised to $25 from $19, reflecting the AI ​​potential of its 1 gigawatt Corsicana site. while CleanSpark (CLSK) was raised to $24 from $20 as it moves towards a bitcoin-AI hybrid model through new hires and partnerships.
Bernstein rates IREN, CORZ, RIOT, and CLSK exceed, the broker said that bitcoin miners with active or potential AI contracts have been re-evaluated by the market as key enablers of the next generation of IT infrastructure.
The mine’s shares soared in premarket trading after the IREN news AI cloud business with Microsoft.
IREN was 21% higher in early trading, around $60.75. Core Scientific shares were 6.8% higher at $23. Riot stock was 3% higher at $20.38. CleanSpark rose 3.6% to $18.44.
Read more: Bitcoin Network Hashrate Hit Record High in October, JPMorgan Says
