Bitcoin Miners Positioned as Future Power Lessors for AI, Bernstein Says

Investment firm Bernstein has issued a bullish outlook on select Bitcoin miners, assigning ‘Outperform’ ratings to TeraWulf (WULF) and Cipher Digital (CIFR). The firm argues that these companies are evolving beyond cryptocurrency mining into critical infrastructure providers for the rapidly expanding artificial intelligence industry.

Miners as Infrastructure Partners for AI

According to a recent Bernstein research note, Bitcoin miners have signed at least 17 power supply agreements with major technology firms over the past two years. These contracts, valued at a combined $110 billion, involve supplying approximately 6 gigawatts (GW) of electricity to companies including Google, Amazon, Microsoft, Nvidia, and CoreWeave. The agreements position miners as ‘power lessors’—entities that lease their existing, large-scale electrical infrastructure and data center operational expertise to AI developers.

Bernstein highlights that miners possess a unique advantage: they already manage vast amounts of power capacity and have deep experience operating high-density computing environments. This makes them natural partners for AI firms facing a severe shortage of available energy and ready-to-use data center space.

Revenue Growth Projections

The investment firm projects that AI-related revenue for the companies it covers will increase approximately ninefold over the next four years. The forecast estimates revenue will climb from $1.2 billion in 2026 to $10.7 billion by 2030. This growth is expected to be driven by long-term contracts that provide stable, recurring cash flows, reducing the miners’ historical dependence on the volatile price of Bitcoin.

Implications for the Energy and Tech Sectors

This shift represents a significant strategic pivot for the Bitcoin mining industry. For years, miners have been criticized for their substantial energy consumption. The new model, however, frames them as essential grid infrastructure that can be repurposed to meet the surging energy demands of AI. For technology companies, the arrangement offers a faster path to securing power for new AI data centers than building from scratch, which can face years of permitting and construction delays.

Conclusion

Bernstein’s analysis suggests that the convergence of cryptocurrency mining and artificial intelligence is not a passing trend but a structural shift. By leveraging their power assets and operational know-how, companies like TeraWulf and Cipher Digital are positioning themselves at the center of the next wave of technological infrastructure investment. The long-term contracts with industry leaders provide a foundation for revenue stability and growth, regardless of the near-term direction of Bitcoin prices.

FAQs

Q1: Why are Bitcoin miners considered good partners for AI companies?
Miners already have access to large amounts of pre-permitted power and have extensive experience running high-density data centers. This makes it faster and cheaper for AI firms to secure the energy and facilities they need.

Q2: Which companies did Bernstein rate as ‘Outperform’?
Bernstein assigned ‘Outperform’ ratings to TeraWulf (WULF) and Cipher Digital (CIFR), citing their strong positioning in the AI infrastructure market.

Q3: How much AI revenue does Bernstein forecast for these miners?
The firm projects AI-related revenue for the covered companies will grow from $1.2 billion in 2026 to $10.7 billion in 2030, a roughly ninefold increase.