UBS Pivots to AI: Four Bitcoin Miners Get 'Buy' Ratings

UBS initiated coverage of four Bitcoin miners with a 'Buy' rating, predicting their power assets and development pipelines will unlock growth beyond crypto mining. Analyst Ryan Gravett believes demand for AI computing infrastructure is expanding rapidly as model developers face capacity constraints.

The analysts highlighted several key catalysts that could drive growth in these companies: capacity deliveries, pipeline clarity, new lease announcements, and contracted power. They also pointed to recent deals implying attractive economics and a repeatable blueprint for future growth.

For Cipher Mining (CIFR), UBS gave a $23 price target, while TeraWulf received a $24 target with an estimated $12 million in equity value per megawatt. Core Scientific got a $24 target as well, expected to diversify its tenant base and support its data-center strategy.

UBS is not alone in its optimism; Wells Fargo also initiated coverage around the same four companies last week, citing contracted power, tenant quality, and execution as key differentiating factors. The banks' predictions come with some uncertainty surrounding timelines for bringing power online in Texas.