Core

Value

Bitcoin

Bernstein analysts are optimistic about two under-the-radar Bitcoin mining companies, Iris Energy (IREN) and <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/" rel="noopener noreferrer nofollow">Core Scientific</a> (CORZ), due to their strategic shift towards AI <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/" rel="noopener noreferrer nofollow">data centers</a>. The firm has initiated coverage on both with Outperform ratings, citing their hybrid business models that leverage existing Bitcoin mining infrastructure for AI data centers, according to <a href="https://www.investing.com/news/cryptocurrency-news/bernstein-is-bullish-on-these-two-lessknown-bitcoin-mining-stocks-432SI-3513977" rel="noopener noreferrer nofollow">Investing</a>.
A notable highlight is CORZ's $4.7 billion co-hosting agreement with Coreweave, showcasing this trend. Bernstein points out that <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a> benefit from their lead in the 'large load' power interconnect queue, giving them an advantage in building out AI data centers. This, combined with competitive power costs, positions them well for partnerships.
The analysts predict that 20% of Bitcoin mining power capacity will be used for AI by 2027, with IREN, CORZ, and other similar players leading the charge. Bernstein remains bullish on Bitcoin, forecasting a price of $200,000 by 2025 and over $1 million by 2033. They see the AI data center angle as a buffer against <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> volatility, potentially attracting more institutional investors.
Comparing IREN and CORZ, Bernstein notes CORZ's lead in co-hosting agreements, while IREN boasts a strong power pipeline and data center expertise. They value IREN and CORZ at target Enterprise Value (EV) to EBITDA multiples of 9.7x and 6.4x for fiscal year 2025, respectively.
"Bitcoin miners' power access looks undervalued if power is the key constraint," Bernstein concludes. They believe the current market undervalues these companies' potential in the booming AI data center space.

Bernstein is Bullish on These Two Less-Known Bitcoin Mining Stocks

Ultramining_Eng

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