Morgan Stanley has initiated coverage on three bitcoin mining companies, recommending Cipher Mining and TeraWulf with Overweight ratings and price targets of $38 and $37, respectively. Analyst Stephen Byrd highlighted these companies' focus on data center leasing, which he views as infrastructure assets offering stable cash flows. Shares of Cipher Mining rose 12.4% to $16.51, while TeraWulf increased 12.8% to $16.12.
Conversely, Marathon Digital received an Underweight rating with an $8 target, as Byrd expressed concerns over its hybrid strategy and focus on bitcoin price exposure. Marathon's shares were slightly up at $8.28. Byrd emphasized the potential for higher valuations in companies transitioning from bitcoin mining to data center operations, likening them to data center REITs.
Morgan Stanley Initiates Coverage on Bitcoin Miners, Favors Cipher Mining and TeraWulf
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