Key Takeaways
- Bernstein rates Iris Energy and Core Scientific as outperforming stocks.
- Bitcoin miners control 6 GW of power, projected to reach 12 GW by 2027.
- Bernstein forecasts Bitcoin reaching $200,000 by 2025, $500,000 by 2029.
What Happened?
Bitcoin miners have emerged as attractive partners for building AI data centers, thanks to their ample power supplies and operational capabilities. Bernstein initiated coverage on Iris Energy and Core Scientific, assigning them outperform ratings. Iris Energy received a $26 price target, while Core Scientific was given a $17 objective.
Currently, Iris Energy trades at $13.40, and Core Scientific at $9.79. The report highlighted Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8 as significant sector catalysts.
Why It Matters?
The significance lies in the synergy between Bitcoin mining and AI data centers. Bitcoin miners control about 6 gigawatts (GW) of power, expected to grow to 12 GW by 2027. This large power access makes them ideal partners for AI companies, saving time and resources.
“Bitcoin data centers are ideal for retrofit due to high power density racks, cooling infrastructure and general data center operating capabilities,” noted analysts led by Gautam Chhugani. Bernstein’s bullish outlook on Bitcoin, predicting it to reach $200,000 by 2025 and $1 million by 2033, further underscores the strategic importance of these miners.
What’s Next?
Expect continued consolidation among the largest U.S. Bitcoin miners, who are projected to control 25% of the global hashrate. By 2027, Bernstein anticipates 20% of Bitcoin miners’ power capacity will pivot to AI.
The successful launch of spot Bitcoin ETFs in the U.S. has strengthened Bernstein’s conviction in Bitcoin’s long-term potential. Investors should watch for further AI-related partnerships and investments in the sector, which could drive substantial growth and innovation.
