Data‑Center Dreams: Two Bitcoin‑Mining Stocks Could Skyrocket

Morgan Stanley has turned its eyes to two companies that once mined Bitcoin and are now turning their rigs into data-center powerhouses. The firm has given Cipher Mining and TeraWulf “overweight” ratings, suggesting their shares could rise by more than 150% if the shift pays off.

Key Points

• Cipher’s analysts set a $38 target, while TeraWulf’s is $37—both well above current prices.
• AI firms demand more computing power, needing fast and reliable energy.
• Former mining sites can supply “time-to-power” service, highly prized by large cloud providers.
• Big tech companies are boosting budgets for compute and power, willing to pay extra for ready-made infrastructure.

Risks

• Converting a mining warehouse into a data center can be costly and slow.
• Companies must secure enough power to keep up with AI workloads.
• Bitcoin’s recent slump—down more than 40% from its October peak—has forced firms to look for new revenue streams.
• Cipher’s stock has risen about 6% and TeraWulf’s up 21% in the past week, while Bitcoin itself fell around 10%.

Warnings

• Morgan Stanley warns that credit issues or scaling limits in AI could slow expansion.
• Any overruns in conversion costs could hurt profits.

Conclusion

If the AI boom continues, these two stocks might double in value, but investors should watch for operational hurdles and market shifts.