Bernstein Initiates Coverage on Bitcoin Miners TeraWulf and Cipher Digital, Forecasting Ninefold AI Revenue Growth by 2030

Investment firm Bernstein initiated coverage on Bitcoin miners TeraWulf (WULF) and Cipher Digital (CIFR) with 'Outperform' ratings, framing them as 'power landlords' for the AI industry. Bernstein forecasts the miners' aggregate AI revenue will grow ninefold to $10.7 billion by 2030, as they leverage existing power infrastructure to meet AI's massive energy demands, a key bottleneck for the sector's growth.

Bernstein initiates miner coverage

• ▪Bernstein set a price target of $36 for TeraWulf and $32 for Cipher Digital.
• ▪Bernstein initiated coverage on Bitcoin miners TeraWulf (WULF) and Cipher Digital (CIFR) with "Outperform" ratings.
• ▪The investment firm's analysts dubbed the miners "the power landlords of AI," positioned to solve the industry's power access bottleneck.

AI revenue growth projections

• ▪The 6 GW of power contracted by miners represents about 10% of all AI data centers currently under construction in the United States.
• ▪Over the past two years, Bitcoin miners have signed 17 deals worth over $110 billion, contracting 6 GW of power to AI companies.
• ▪Cipher Digital's AI revenue is projected to reach $1.2 billion by 2030, with EBITDA margins stabilizing at 93%.
• ▪Bernstein projects aggregate AI revenue for the Bitcoin miners it covers will grow ninefold, from $1.2 billion in 2026 to $10.7 billion by 2030.

TeraWulf brownfield power strategy

• ▪TeraWulf's strategy involves redeveloping legacy industrial sites, such as former coal plants, into data centers.
• ▪On May 26, 2026, TeraWulf acquired the 285-acre Muskie Data Campus in Kentucky, which is expected to support up to 1 gigawatt of capacity.
• ▪TeraWulf has contracted 643 gross megawatts to Fluidstack and Core42 under deals worth approximately $13 billion in total revenue.
• ▪This brownfield strategy cuts TeraWulf's buildout capex to $7.2 million per IT megawatt, versus an industry benchmark of $11-$13 million.

Cipher Digital hyperscaler contracts

• ▪Cipher Digital has contracted 495 IT megawatts across deals representing $11.4 billion in total revenue.
• ▪Approximately 67% of Cipher Digital's order book is backed by investment-grade hyperscalers, including AWS.
• ▪Cipher Digital's deal structures have improved to a triple-net lease with AWS, which enabled the company to raise $2 billion in project financing.

Counterparty concentration risks

• ▪Fluidstack accounts for approximately 91% of TeraWulf's contracted revenue.
• ▪AWS represents approximately 48% of Cipher Digital's contracted revenue.
• ▪Bernstein identified counterparty concentration as a principal near-term risk for the miners.

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