Bernstein's Bold Bet: Are Bitcoin Miners Secretly AI Powerhouses?
Forget digital gold. The real story brewing in the bitcoin mining world isn't about coin prices, but about raw power. We're talking about a seismic shift, a re-rating of these companies not as speculative bets, but as vital cogs in the AI revolution. Bernstein's latest analysis isn’t just a price target bump; it’s a fundamental change in perspective. They're saying these miners aren't just chasing Bitcoin gains anymore, they're monetizing the very infrastructure that will fuel the future of AI.
This isn't just about numbers; it's about vision. It's about seeing the potential where others see only risk. The fact that IREN shares jumped 21%? That's not just a blip; that's the market waking up to the reality that these companies hold the keys to unlocking AI's true potential. Core Scientific, Riot, CleanSpark – these aren't just names on a stock ticker; they're pioneers on the cusp of a new era.
The AI Gold Rush is Powered by…Bitcoin Miners?
Bernstein's analysts are ditching old valuation models – the discounted cash flow stuff – in favor of a "sum-of-parts" approach. What does that even mean? It means they're looking at the whole picture: Bitcoin holdings, mining profits (EBITDA), AI co-location and cloud revenues, and, crucially, the value of those massive power sites earmarked for AI data centers. And here's the kicker: they're conservatively valuing that power infrastructure at $3 million per megawatt. That’s not chump change, folks.
Think about it. These miners already have the infrastructure. They have the land, the power connections, the cooling systems – everything AI data centers desperately need. It's like they were unknowingly building the railroads of the AI gold rush. And now, with every U.S.-listed bitcoin miner actively pivoting toward maximizing the value of its power assets, the transformation is accelerating. Core Scientific's shift toward high-performance computing (HPC) colocation, Riot's 1-gigawatt Corsicana site, CleanSpark's hybrid bitcoin-AI model – it's all pointing in the same direction. CORZ, RIOT and CLSK Earn PT Hikes at Bernstein - CoinDesk
And it's not just about the infrastructure itself; it's about the speed and scale. Core Scientific, for example, plans to deliver about 590 megawatts of IT load by early 2027. The speed of this is just staggering—it means the gap between today and tomorrow is closing faster than we can even comprehend. Imagine the possibilities that open up when you have that much computing power readily available. The kinds of problems we can solve, the innovations we can unleash…it’s truly breathtaking.
This is the kind of breakthrough that reminds me why I got into this field in the first place.
But let's not get carried away. As with any powerful technology, there are ethical considerations. We need to ensure that this AI revolution is used for good, that it benefits all of humanity and doesn’t exacerbate existing inequalities. The responsibility falls on us, the innovators, the investors, and the policymakers, to guide this technology in a direction that aligns with our values.
It's also worth noting the shareholder rejection of the CoreWeave deal. Some might see it as a setback, but Bernstein views it as an opportunity for management to optimize value and hinted at a new partnership expected in the fourth quarter. That’s not just optimism; it’s strategic foresight. It's recognizing that the path to the future isn't always linear, but that the underlying potential remains immense.
The Dawn of Decentralized Intelligence
This pivot reminds me of the early days of the internet. People dismissed it as a fad, a toy for nerds. But those who saw the underlying potential – the ability to connect people and information on a global scale – were the ones who built the future. And that's exactly what's happening here. These bitcoin miners, once seen as fringe players in the tech world, are now emerging as key enablers of the next generation of computing infrastructure.
The market is re-rating bitcoin miners with active or potential AI contracts as key enablers of the next generation of computing infrastructure. You see the comments, the excitement, the feeling that something truly transformative is happening. People are waking up to the fact that these companies aren't just mining Bitcoin; they're mining the future.
