The latest developments are shaping the future of the industry. Analysts at research and brokerage firm Bernstein have taken note of the growing trend, initiating coverage on two prominent players in the crypto mining space: Core Scientific and IREN.
Bernstein’s Bullish Outlook on Core Scientific and IREN
Bernstein has given both Core Scientific and IREN an “outperform” rating, citing the firms’ hybrid strategies that combine bitcoin mining and AI data center operations. The analysts, Gautam Chhugani and Mahika Sapra, believe that “bitcoin miners are emerging as attractive partners to build out AI data centers with ‘ready power interconnect’ and data center operating capabilities.”
Recent deals, such as Core Scientific’s 12-year agreement with AI firm CoreWeave and IREN’s Nvidia GPU deal with AI startup Poolside, have been key catalysts for the analysts’ positive outlook. They have set a price target of $17 for Core Scientific, representing a 64% upside, and $26 for IREN, a 78% upside.
The Advantages of Crypto Mining Facilities for AI
Bernstein’s analysts highlight several factors that make crypto mining facilities ideal for AI data centers:
- Bitcoin miners enjoy a significant lead in the “large load” power interconnect queue, allowing them to save time in the market.
- Mining facilities have high-power density racks, cooling infrastructure, and data center operating capabilities, making them well-suited for AI retrofitting.
Bernstein expects that 20% of bitcoin miners’ power capacity will pivot to AI by the end of 2027, with the top crypto mining and AI hybrid firms leading the charge.
Bullish Bitcoin Price Targets
Alongside their initiation of coverage on Core Scientific and IREN, Bernstein’s analysts have also reiterated their bullish price targets for bitcoin. They foresee the cryptocurrency reaching $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by 2033.
The analysts believe that the market is currently undervaluing crypto miners for their “strategic power portfolio” and monetization potential in the AI data center space, despite their expectation of a long-term structural uptrend in bitcoin prices.
As the cryptocurrency industry continues to evolve, the convergence of crypto mining and AI data centers is poised to become an increasingly significant trend, offering new opportunities for investors and industry players alike.
