Bitcoin Miners Are Attractive Partners to Build Artificial Intelligence Data Centers: Bernstein

As an analyst, I’m initiating coverage on two stocks: Iris Energy (IREN) and Core Scientific. I’ve set an outperform rating for both, with price targets of $26 for Iris Energy and $17 for Core Scientific. Currently, Iris Energy is trading at around $13.40, while Core Scientific is at roughly $9.79 in early trading on Tuesday.

Bitcoin mining operations currently command access to approximately 6 gigawatts (GW) of power, with plans to increase this capacity to as much as 12 GW by 2027, according to the report. These miners hold a prominent position in the “large energy grid connection lineup,” enabling them to expedite the process for prospective allies seeking to secure energy resources.

The five biggest American Bitcoin mining companies are projected to persistently increase in size and could eventually represent approximately one quarter of the total Bitcoin computational power worldwide, according to Bernstein’s analysis. This measure, known as hashrate, is a significant indicator of competition within the industry and the level of mining complexity. There’s also a potential mid-term shift for these companies towards artificial intelligence.

As a researcher studying the cryptocurrency market, I’ve come across the perspective of a broker who remains bullish on bitcoin. This optimistic outlook predicts the price reaching $200,000 by 2025, $500,000 by 2029, and surpassing $1 million by 2033. Following the successful debut of U.S. spot bitcoin ETFs in January, their conviction in this prediction has grown even stronger.