Wall Street analysts are increasingly convinced that Bitcoin miners are evolving into vital players in the artificial intelligence (AI) sector, assuming the role of “power landlords.” This assertion comes from a recent research note issued by Bernstein, an investment firm owned by Société Générale, which initiated coverage on two prominent mining firms—TeraWulf and Cipher Digital—both receiving “Outperform” ratings.
The report highlights a significant transformation within the Bitcoin mining industry, underscoring that miners have successfully executed 17 agreements valued at over $110 billion in the last two years. These deals involve the allocation of approximately 6 gigawatts of power to various AI hyperscalers, including tech giants like Google, Amazon, Microsoft, Nvidia, and CoreWeave. This power allocation comprises around 10% of all AI data centers currently in the construction phase within the United States.
According to Bernstein analysts, Bitcoin miners are particularly well-equipped to address one of AI’s most pressing issues: the urgent need for access to large-scale, readily available power. The report emphasizes the planned 30-gigawatt power portfolio that miners are developing, along with their operational expertise in creating what it describes as “warm powered shells.” These facilities are pre-equipped with power and set to receive computing hardware without delay.
Bernstein projects that the cumulative AI revenue of the companies under its coverage could soar from $1.2 billion in 2026 to an impressive $10.7 billion by 2030. Specifically, TeraWulf, supported by a partnership with Fluidstack and Google, is anticipated to generate $1.7 billion in AI revenue by that time, boasting EBITDA margins approaching 84%. Meanwhile, Cipher Digital, which primarily serves hyperscaler clients, is expected to amass $1.2 billion in AI revenue with margins near 93%.
Investors have taken note of the companies’ colocation business model, which involves leasing powered facilities under long-term, take-or-pay contracts, offering stability that appeals to investors. Bernstein reports that project financing markets are currently covering 75-85% of the construction costs for these facilities at interest rates significantly below the expected returns from the underlying contracts.
This shift in focus is indicative of a broader change in how both investors and technology executives perceive power infrastructure. With the surging demand for AI computing resources, ensuring reliable access to large-scale electricity is becoming increasingly critical, strategically rivaling the importance of computing chips. Interestingly, miners, who traditionally pursued power for their own operations, now find themselves in possession of a highly sought-after asset.
Despite current declines in share prices for both TeraWulf and Cipher Digital, which have fallen as of the report’s publication, the companies have shown significant growth since the beginning of 2026. TeraWulf’s shares are up nearly 122%, while Cipher Digital’s have risen by about 69% during the same period.
