Bernstein: Bitcoin Miners Offer Strategic Advantage in AI Data Center Projects
Bitcoin miners are emerging as attractive partners for the construction of artificial intelligence (AI) data centers, benefiting from their available power supplies and operational capabilities.
In a research report, broker Bernstein said recent AI deals, such as Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8, act as significant catalysts for the sector.
Bernstein initiated coverage of miner Iris Energy with an outperform rating and a $26 price target.
Additionally, the broker initiated coverage of Core Scientific with an outperform rating and a $17 objective.
In early trading, Iris Energy was valued at $13.40, while Core Scientific stood at $9.79.
Bitcoin miners have secured substantial power supplies, currently controlling around 6 gigawatts (GW) of power access, with a projected pipeline of up to 12 GW by 2027.
The power capacity allows miners to occupy a favorable position in the “large load power interconnect queue,” enabling potential partners to save time in securing energy supplies.
The analysts at Bernstein note that Bitcoin data centers are well-suited for retrofitting due to their high power density racks, robust cooling infrastructure, and general operating capabilities.
They anticipate that by the end of 2027, around 20% of bitcoin miners’ power capacity will shift towards AI.
Furthermore, Bernstein predicts that the five largest Bitcoin miners in the United States will continue to consolidate their scale and potentially account for approximately 25% of the global Bitcoin hashrate.
This consolidation positions them favorably to explore AI opportunities in the medium term.
Hashrate, which serves as a proxy for industry competition and mining difficulty, plays
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