Bitcoin Miners Emerge as 'Power Landlords' of AI Boom—And Revenue Will Surge: Bernstein
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- Bernstein initiated coverage on TeraWulf (WULF) and Cipher Digital (CIFR) with “Outperform” ratings in its new research note.
- Bitcoin miners have executed 17 power‑sale contracts worth >$110 billion over the past two years, securing roughly 6 GW of electricity for AI hyperscalers such as Google, Amazon, Microsoft, Nvidia and CoreWeave.
- TeraWulf is projected to generate $1.7 billion in AI‑related revenue by 2030, with EBITDA margins near 84%, supported by its partnership with Fluidstack and Google.
- Cipher Digital expects $1.2 billion in AI revenue by 2030, achieving EBITDA margins around 93% thanks to a client base dominated by hyperscalers.
- Project financing now funds 75‑85% of construction costs for these “warm‑powered shell” facilities at interest rates lower than the contracts’ returns, supporting miners’ shift to power‑landlord roles.
Why it matters: AI hyperscalers gain secure, ready‑to‑use power for new data centers, while Bitcoin miners monetize idle capacity, driving projected AI revenue to $10.7 billion by 2030 and boosting EBITDA margins above 80%.
