Bitcoin
Bernstein Is Bullish on These Two Lesser-Known Bitcoin Mining Stocks By Investing.com
Bernstein analysts see growth potential in two little-known Bitcoin mining companies, citing their strategic shift to house artificial intelligence (AI) data centers.
In a note, the company begins coverage of Iris Energy (IREN) and Core Scientific (CORZ) with outperform ratings.
Bernstein highlights the hybrid business model of miners, leveraging their existing Bitcoin mining infrastructure for AI data centers. They point to recent deals, such as CORZ’s $4.7 billion co-hosting agreement with Coreweave, as evidence of this trend.
“Bitcoin miners enjoy a lead in the ‘large load’ power interconnection queue,” Bernstein says, giving them a significant advantage in building AI data centers. This, combined with their competitive energy costs, positions them well for partnerships.
Analysts predict that 20% of Bitcoin mining capacity will be used for AI by 2027, with IREN, CORZ, and other similar players leading the charge.
Bernstein remains bullish on Bitcoin, predicting a price of $200,000 by 2025 and surpassing $1 million by 2033. However, they see the AI data center angle as a hedge against Bitcoin’s price volatility, potentially attracting more institutional investors.
The report compares IREN and CORZ, noting CORZ’s leadership in co-hosting arrangements, while IREN boasts a strong energy pipeline and data center expertise. Bernstein values IREN and CORZ at an Enterprise Value (EV) to EBITDA multiple of 9.7x and 6.4x for fiscal 2025, respectively.
“If power is the primary constraint, then access to Bitcoin miner power seems undervalued,” Bernstein concludes. They believe the current market undervalues the potential of these companies in the growing AI data center space.