Morgan Stanley Bullish on Bitcoin Miners' Stock Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy CIFR?
Source: CNBC
- Stock Rating Initiation: Morgan Stanley has initiated coverage on bitcoin miners Cipher Mining and TeraWulf with 'overweight' ratings, setting price targets of $38 and $37 respectively, indicating potential upside of 158% and 159%, reflecting strong confidence in both companies' prospects.
- Rising Market Demand: Analysts highlight a systematic shortage of AI compute-related supply driving demand for 'time to power' solutions, which maximize deployment efficiency and uptime, thus presenting new growth opportunities for bitcoin miners transitioning to data centers.
- Increased Capital Expenditure: Recent capital expenditure updates from hyperscalers suggest rising appetite and budgets for compute and power, indicating these companies are likely to pay higher premiums for time-to-power solutions provided by former bitcoin miners, further enhancing market potential.
- Transformation Challenges: Despite the optimistic outlook, Morgan Stanley warns that credit challenges could hinder the capacity expansion of data centers to meet AI clients' needs, while the conversion process from bitcoin mining warehouses to data centers may introduce cost overruns, necessitating cautious consideration.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CIFR?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CIFR
Wall Street analysts forecast CIFR stock price to rise
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.100
Low
18.00
Averages
26.23
High
34.00
Current: 16.100
Low
18.00
Averages
26.23
High
34.00
About CIFR
Cipher Mining Inc. is focused on the development and operation of industrial-scale data centers for bitcoin mining and high-performance computing (HPC) hosting. The Company operates two wholly owned bitcoin mining data centers, a 207 megawatts (MW) site located in Odessa, Texas that draws fixed priced power from a power purchase agreement with its electricity provider (the Odessa Facility), and a 300 MW data center in Wink, Texas, of which 150 MW is operational as a bitcoin mining data center, that draws power from the power grid (the Black Pearl Facility), and has equity investments in three partially-owned 40 MW bitcoin mining data centers. Its development pipeline totals approximately 3.4 gigawatts (GW) across eight sites. The Odessa Facility is an approximately 52-acre site, located next to a natural gas power production facility. Through a subsidiary, it is in the process of constructing a data center for HPC near Colorado City, Texas (the Barber Lake Facility).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities in AI Infrastructure
- Surge in CAPEX: AI-related capital expenditures among hyperscalers are projected to reach $515 billion by 2026, a significant increase from $390 billion in 2025, indicating robust demand for AI infrastructure and presenting a lucrative opportunity for investors seeking stable returns.
- Revenue Growth Potential: Nebius Group is expected to grow its full-year revenues by 5x in 2026, reflecting the strong performance of AI infrastructure companies in the market, allowing investors to benefit from long-term capital appreciation.
- Productivity Boost: The proliferation of AI technology has led to over 30% increases in new website creation, iOS apps, and GitHub code productivity over the past year, further driving big tech companies' spending on AI infrastructure and ensuring sustained industry growth.
- Market Transition Opportunity: As the AI buildout frenzy cools, infrastructure companies will shift from construction to monetization phases, expected to generate substantial rental income, enabling investors to navigate the uncertainties of software competition by focusing on
See More
Cipher Mining Stock Surges 13.75% on Bullish Analyst Note
- Analyst Optimism: Morgan Stanley analyst Stephen Byrd initiated coverage on Cipher Mining with an 'overweight' rating, leading to a nearly 14% stock price increase during the trading session, reflecting market optimism about its future performance.
- Bitcoin Mining Trend: Analysts noted a growing trend of Bitcoin miners transitioning into the data center segment, which, if managed effectively, could provide long-term stable cash flows, reducing reliance on volatile cryptocurrencies.
- AI Infrastructure Demand: The Morgan Stanley team believes that strong demand for AI-capable infrastructure is likely to exceed limited supply, presenting significant potential for companies like Cipher Mining and TeraWulf, despite their relatively small data center operations.
- Future Outlook: While Cipher Mining has yet to fully establish itself as a data center specialist, analysts maintain a positive outlook, suggesting it could achieve substantial gains in the rapidly evolving AI market.
See More
Two Bitcoin Miners Set to Benefit from the AI Boom
Bitcoin Price Decline: Bitcoin prices have decreased by 44% since October, indicating a significant downturn in the cryptocurrency market.
Bitcoin Miners Transition: Bitcoin miners are adapting by shifting their operations to support AI data centers, which has provided them with new opportunities.
Stock Performance: Several Bitcoin miner stocks have seen an increase in value over the past two years due to this transition.
Future Projections: Morgan Stanley analyst Stephen Byrd predicts that at least two Bitcoin miner stocks could potentially double in value within the next year.
See More
Morgan Stanley Bullish on Bitcoin Miners' Stock Potential
- Stock Rating Initiation: Morgan Stanley has initiated coverage on bitcoin miners Cipher Mining and TeraWulf with 'overweight' ratings, setting price targets of $38 and $37 respectively, indicating potential upside of 158% and 159%, reflecting strong confidence in both companies' prospects.
- Rising Market Demand: Analysts highlight a systematic shortage of AI compute-related supply driving demand for 'time to power' solutions, which maximize deployment efficiency and uptime, thus presenting new growth opportunities for bitcoin miners transitioning to data centers.
- Increased Capital Expenditure: Recent capital expenditure updates from hyperscalers suggest rising appetite and budgets for compute and power, indicating these companies are likely to pay higher premiums for time-to-power solutions provided by former bitcoin miners, further enhancing market potential.
- Transformation Challenges: Despite the optimistic outlook, Morgan Stanley warns that credit challenges could hinder the capacity expansion of data centers to meet AI clients' needs, while the conversion process from bitcoin mining warehouses to data centers may introduce cost overruns, necessitating cautious consideration.
See More
Major Wall Street Rating Updates on Monday
- Robinhood Upgrade: Wolfe upgraded Robinhood from Peer Perform to Outperform to capitalize on the recent selloff due to deteriorating sentiment in the crypto ecosystem, indicating that investors should seize the buying opportunity.
- Bullish on TeraWulf and Cipher Mining: Morgan Stanley initiated coverage on TeraWulf and Cipher Mining with an Overweight rating, citing significant upside potential from attractive valuations in the bitcoin mining sector.
- Timken's New CEO Drives Growth: KeyBanc upgraded Timken from Sector Weight to Overweight with a $130 price target, primarily based on expectations that new CEO Lucian Boldea will enhance organic growth initiatives and improve margins.
- Align Technologies Brand Strength: HSBC upgraded Align Technologies from Hold to Buy, emphasizing that its strong brand presence and R&D culture are key long-term growth drivers in the orthodontics market.
See More
Cipher Mining Shifts Focus to AI Data Centers
- Long-Term Contracts: Cipher Mining has signed a $5.5 billion, 15-year lease with Amazon, becoming one of its largest customers, which not only provides a stable revenue stream but also highlights its strong appeal in the AI data center market.
- Accelerating Profitability: Although the cryptocurrency mining segment remains unprofitable, Cipher Mining's revenue nearly tripled year-over-year to $71.7 million, with operating losses reduced from $91.4 million to $37.6 million, indicating positive progress towards profitability.
- Diversified Energy Pipeline: The acquisition of a 200-megawatt site in Ohio, expected to energize by 2027, brings Cipher Mining's total pipeline to 3.4 gigawatts, enhancing its competitiveness among tech companies and accelerating the build-out of its energy pipeline.
- AI Market Potential: Grandview Research projects that the artificial intelligence market will maintain a 30.6% compound annual growth rate through 2033, creating significant demand for Cipher Mining's AI data centers, while Bitcoin price volatility offers additional upside for its crypto operations.
See More
Investment Opportunities in AI Infrastructure
- Surge in CAPEX: AI-related capital expenditures among hyperscalers are projected to reach $515 billion by 2026, a significant increase from $390 billion in 2025, indicating robust demand for AI infrastructure and presenting a lucrative opportunity for investors seeking stable returns.
- Revenue Growth Potential: Nebius Group is expected to grow its full-year revenues by 5x in 2026, reflecting the strong performance of AI infrastructure companies in the market, allowing investors to benefit from long-term capital appreciation.
- Productivity Boost: The proliferation of AI technology has led to over 30% increases in new website creation, iOS apps, and GitHub code productivity over the past year, further driving big tech companies' spending on AI infrastructure and ensuring sustained industry growth.
- Market Transition Opportunity: As the AI buildout frenzy cools, infrastructure companies will shift from construction to monetization phases, expected to generate substantial rental income, enabling investors to navigate the uncertainties of software competition by focusing on
See More
Cipher Mining Stock Surges 13.75% on Bullish Analyst Note
- Analyst Optimism: Morgan Stanley analyst Stephen Byrd initiated coverage on Cipher Mining with an 'overweight' rating, leading to a nearly 14% stock price increase during the trading session, reflecting market optimism about its future performance.
- Bitcoin Mining Trend: Analysts noted a growing trend of Bitcoin miners transitioning into the data center segment, which, if managed effectively, could provide long-term stable cash flows, reducing reliance on volatile cryptocurrencies.
- AI Infrastructure Demand: The Morgan Stanley team believes that strong demand for AI-capable infrastructure is likely to exceed limited supply, presenting significant potential for companies like Cipher Mining and TeraWulf, despite their relatively small data center operations.
- Future Outlook: While Cipher Mining has yet to fully establish itself as a data center specialist, analysts maintain a positive outlook, suggesting it could achieve substantial gains in the rapidly evolving AI market.
See More
Two Bitcoin Miners Set to Benefit from the AI Boom
Bitcoin Price Decline: Bitcoin prices have decreased by 44% since October, indicating a significant downturn in the cryptocurrency market.
Bitcoin Miners Transition: Bitcoin miners are adapting by shifting their operations to support AI data centers, which has provided them with new opportunities.
Stock Performance: Several Bitcoin miner stocks have seen an increase in value over the past two years due to this transition.
Future Projections: Morgan Stanley analyst Stephen Byrd predicts that at least two Bitcoin miner stocks could potentially double in value within the next year.
See More
Morgan Stanley Bullish on Bitcoin Miners' Stock Potential
- Stock Rating Initiation: Morgan Stanley has initiated coverage on bitcoin miners Cipher Mining and TeraWulf with 'overweight' ratings, setting price targets of $38 and $37 respectively, indicating potential upside of 158% and 159%, reflecting strong confidence in both companies' prospects.
- Rising Market Demand: Analysts highlight a systematic shortage of AI compute-related supply driving demand for 'time to power' solutions, which maximize deployment efficiency and uptime, thus presenting new growth opportunities for bitcoin miners transitioning to data centers.
- Increased Capital Expenditure: Recent capital expenditure updates from hyperscalers suggest rising appetite and budgets for compute and power, indicating these companies are likely to pay higher premiums for time-to-power solutions provided by former bitcoin miners, further enhancing market potential.
- Transformation Challenges: Despite the optimistic outlook, Morgan Stanley warns that credit challenges could hinder the capacity expansion of data centers to meet AI clients' needs, while the conversion process from bitcoin mining warehouses to data centers may introduce cost overruns, necessitating cautious consideration.
See More
Major Wall Street Rating Updates on Monday
- Robinhood Upgrade: Wolfe upgraded Robinhood from Peer Perform to Outperform to capitalize on the recent selloff due to deteriorating sentiment in the crypto ecosystem, indicating that investors should seize the buying opportunity.
- Bullish on TeraWulf and Cipher Mining: Morgan Stanley initiated coverage on TeraWulf and Cipher Mining with an Overweight rating, citing significant upside potential from attractive valuations in the bitcoin mining sector.
- Timken's New CEO Drives Growth: KeyBanc upgraded Timken from Sector Weight to Overweight with a $130 price target, primarily based on expectations that new CEO Lucian Boldea will enhance organic growth initiatives and improve margins.
- Align Technologies Brand Strength: HSBC upgraded Align Technologies from Hold to Buy, emphasizing that its strong brand presence and R&D culture are key long-term growth drivers in the orthodontics market.
See More
Cipher Mining Shifts Focus to AI Data Centers
- Long-Term Contracts: Cipher Mining has signed a $5.5 billion, 15-year lease with Amazon, becoming one of its largest customers, which not only provides a stable revenue stream but also highlights its strong appeal in the AI data center market.
- Accelerating Profitability: Although the cryptocurrency mining segment remains unprofitable, Cipher Mining's revenue nearly tripled year-over-year to $71.7 million, with operating losses reduced from $91.4 million to $37.6 million, indicating positive progress towards profitability.
- Diversified Energy Pipeline: The acquisition of a 200-megawatt site in Ohio, expected to energize by 2027, brings Cipher Mining's total pipeline to 3.4 gigawatts, enhancing its competitiveness among tech companies and accelerating the build-out of its energy pipeline.
- AI Market Potential: Grandview Research projects that the artificial intelligence market will maintain a 30.6% compound annual growth rate through 2033, creating significant demand for Cipher Mining's AI data centers, while Bitcoin price volatility offers additional upside for its crypto operations.
See More
