Texas Audit Sparks Valuation Gains for Secured Power Capacity Holders
Bernstein, an investment firm, has highlighted the potential benefits for Bitcoin miners and AI infrastructure companies operating in Texas with secured power capacity. According to Bernstein, the state's audit of grid interconnection projects could lead to a rise in valuations for these companies.
The scarcity value of already approved megawatts is expected to increase as the state reviews grid interconnection projects. This means that companies which have already navigated the regulatory landscape and secured power capacity may see higher returns per megawatt.
Bernstein has maintained an outperform rating on several key players, including Cipher Mining (CIFR), CleanSpark (CLSK), Core Scientific (CORZ), IREN (IREN), Riot Platforms (RIOT), and TeraWulf (WULF). In contrast, MARA Holdings (MARA) received a market-perform rating.
The analysis underscores the importance of power procurement strategies in evaluating Bitcoin mining and AI infrastructure companies. Companies with established power agreements may be better shielded from future disruptions as regulatory scrutiny increases.