Why Morgan Stanley Thinks These Bitcoin Miners Are the Next Superstars

 WallStWhiz
 
  WallStWhiz
 
Follow  Message
 
 
 
Unraveling market complexities one story at a time. Reporting on finance with integrity and insight.
 

•  09 Feb 2026
 

•   CIFR  
   
  -0.06%

Morgan Stanley is pointing traders toward a surprising opportunity in the world of Bitcoin mining. Once solely focused on crypto, some miners are now pivoting to advanced computing infrastructure, opening the door to huge potential gains. Companies like $CIFR Cipher Mining Technologies and $TERA TeraWulf have received buy ratings, with target prices implying more than 150% upside from current levels. $CIFR is set at $38, while $TERA is at $37, signaling a major shift from reliance on Bitcoin prices to the growing demand for computing power.

This move comes at a time when AI-driven computing is exploding. The demand for data centers is surging as AI models grow in complexity, and miners are in a unique position to take advantage. They already own power infrastructure, land, and cooling systems, allowing for a rapid pivot. In the U.S. and Europe, computing capacity is scarce, giving these companies an edge. TeraWulf, for example, raised $3.2 billion in bonds to expand Google-related facilities and added another $1.3 billion for a separate project, while Cipher Mining raised $1.4 billion for similar purposes. These deals, led by Morgan Stanley, reflect investor appetite for AI infrastructure investments, often oversubscribed multiple times.

Major tech giants are also fueling growth. Meta plans to invest at least $600 billion in AI infrastructure by 2028, including data centers, while Alphabet is raising billions to fund its AI ambitions. This aligns with investment bank forecasts anticipating significant growth in 2026 as AI investments begin to generate returns.

The upside is clear, but so are the risks. Conversion costs can be high, and financing delays may slow progress. Large AI models are limited by technological constraints, and competition is intensifying. Bitcoin itself has dropped about 40% from its peak, currently trading near $70,000, yet shares of these companies are climbing: $CIFR rose 6% and $TERA jumped 20% in the last week, even as Bitcoin fell 10%. This decoupling indicates investors are increasingly valuing these companies as AI infrastructure providers rather than traditional miners.

The broader trend is massive. Over the next three years, AI investments could exceed $3 trillion globally. Bitcoin miners transitioning to data centers stand to benefit, but execution is everything. Projects like TeraWulf Texas facilities demonstrate that fast access to electricity is a competitive advantage, particularly when tech giants cannot wait years for new builds.

So why are Bitcoin miners switching to data centers? AI demand is skyrocketing while Bitcoin remains volatile. Existing infrastructure allows miners to pivot cheaply, creating more stable revenue streams from computing services for tech giants. While not without risk, successful bond fundraising and major bank recommendations signal strong market confidence.

View All Headlines