AI contracts, not bitcoin, now drive miner valuations, and Cipher and TeraWulf look cheap
Compass Point analysts Michael Donovan and Ed Engel said markets are giving little credit to future AI data center pipelines despite billions of dollars in signed leases.
Make preferred on
Share this article
Summary
- Compass Point says Applied Digital, TeraWulf and Cipher Mining are trading below the value of their signed AI data center contracts.
- The firm argued investors should value AI infrastructure companies based on contracted rental income rather than bitcoin mining economics.
- Analysts expect project completions and rent commencements over the next two years to become the main drivers of stock performance.
