Bernstein analysts are nonetheless very centered on publicly traded Bitcoin mining corporations within the months after the newest halving occasion.
In a analysis word on Wednesday, the agency benchmarked 12 Bitcoin mining corporations, highlighting vital upside for these with improved energy methods and effectivity. The evaluation means that Bitcoin miners may slender their present 90% valuation low cost, or drawback, in comparison with conventional knowledge facilities by optimizing their energy portfolios and embracing cutting-edge effectivity measures.
“We imagine Bitcoin miners by specializing in an lively ‘energy’ technique and pushing the frontiers of energy effectivity, could make a stronger case for valuation re-rating,” the analysts state.
The report highlights aggressive hash charge enlargement plans, various energy efficiencies throughout miners, and the potential for miners to leverage their belongings for each Bitcoin mining and AI knowledge middle operations.
Key gamers like Riot Platforms (RIOT), CleanSpark (CLSK), and Iris Power (IREN) are nonetheless favorites among the many Bernstein analysts. The report additionally touches on Bitcoin holding methods and the affect of next-generation mining chips.
The analysts imagine there may be “vital upside from extracting extra Bitcoin hash charge from their current portfolio, by merely upgrading their fleets to the most recent era ASICs.”
By way of energy effectivity and uptime, the analysts write that Iris Power and CleanSpark “do properly on energy effectivity/uptime.” In the meantime, Core Scientific (CORZ) “does properly on knowledge middle uptime.”
The analysts count on enhancements for some corporations, noting: “We imagine RIOT effectivity ought to get higher because it energizes its massive energy websites, and [Marathon Digital] effectivity ought to get higher because it grows its self-mining portfolio.”
The report additionally discusses the chance introduced by the most recent era of mining chips, writing that it presents a possibility for CORZ to enhance its mining capability to energy consumption ratio.
Bernstein’s evaluation additionally extends to the miners’ Bitcoin holdings and promoting methods.
Giant consolidators like Marathon Digital Holdings, Riot Platforms, and CleanSpark are holding substantial Bitcoin on their stability sheets whereas promoting a smaller share of their manufacturing in comparison with 2023.
In distinction, smaller or mid-scale miners like Core Scientific (CORZ), Iris Power (IREN), and TeraWulf (WULF) sometimes promote 100% of their manufacturing to fund operations.
The report additionally touches on the potential for Bitcoin miners to pivot in the direction of AI knowledge facilities, which it additionally lined in a report at the beginning of the month.
Bernstein analysts wrote that they’re sustaining an Outperform ranking on Core Scientific with a $17 worth goal, Iris Power with a $26 goal $26, Riot Platforms with a $22 goal, and CleanSpark with a $30 goal. However Marathon Digital has been given a Market-Carry out ranking, with a $23 goal.
Edited by Stacy Elliott.
