TechFlow reported on September 18 that, according to The Block, Bernstein analysts in research and brokerage released a report stating that AI-focused Bitcoin miners such as Core Scientific, IREN, and Terawulf have outperformed their peers focused solely on Bitcoin mining. This is primarily attributed to investors’ greater confidence in their data center business models. Nonetheless, all publicly traded mining companies possess "significant upside" potential due to their controlled power portfolios and anticipated rises in Bitcoin prices.
The report noted that AI-oriented miners are favored by investors thanks to business diversification, better valuation multiples, more predictable revenue streams, and more flexible market strategies. IREN stands out particularly, planning to double its GPU capacity and computing power by year-end, with AI cloud services expected to contribute approximately 10% of revenues. In contrast, large traditional miners such as Marathon, Riot Platforms, and CleanSpark hold substantial Bitcoin reserves and have sold a smaller proportion of mined Bitcoin this year compared to 2023. Bernstein expects pure-play mining stocks could bottom at current levels and benefit from an accelerating Bitcoin cycle once uncertainties surrounding the U.S. election are resolved.
