Latest development3 months ago
Bernstein Warns Against Overestimating AI Returns for Bitcoin Miners
Bernstein analysts label Core Scientific’s 75% AI returns as an outlier, setting lower benchmarks for the broader mining sector.
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Bitcoin miners are pivoting toward AI infrastructure, with analysts noting that AI contracts have replaced bitcoin as the primary driver of market valuations. Despite a 16% decline in the sector's index due to liquidity concerns and SEC filings, companies like Cipher and TeraWulf are seen as undervalued relative to their data center pipelines. While Core Scientific achieved an outlier return of 75% on AI deals, stabilized returns on assets for other major miners are estimated between 4% and 5%.
Bernstein analysts label Core Scientific’s 75% AI returns as an outlier, setting lower benchmarks for the broader mining sector.
Read the full storyThe index fell 16% in a month as TeraWulf regulatory filings and insider liquidity concerns weighed on the sector's pivot toward AI infrastructure.
Compass Point analysts identify AI data center contracts as the primary valuation driver for miners, overshadowing traditional bitcoin metrics.