Compass Point has identified a significant valuation gap in the cryptocurrency mining sector, highlighting that AI contracts, rather than Bitcoin, are now the primary drivers of miner valuations. The firm points to Applied Digital, TeraWulf, and Cipher Mining as companies where the market undervalues their potential AI capacity, which could generate substantial rental income once leased.
In contrast, Core Scientific's valuation already reflects its existing contracts, suggesting future growth hinges on acquiring new customers. Riot Platforms is valued more on its future potential, particularly its Corsicana campus and AI development pipeline, despite limited current contracted capacity. The report suggests the next two years will be crucial as companies transition from announcing AI infrastructure deals to executing them, potentially aligning valuations with other income-generating infrastructure assets.
AI Contracts Drive Miner Valuations, Cipher and TeraWulf Undervalued
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