Data‑Center Dreams: Two Bitcoin‑Mining Stocks Could Skyrocket

Morgan Stanley has turned its eyes to two companies that once mined Bitcoin and are now turning their rigs into data‑center powerhouses. The firm has given Cipher Mining and TeraWulf “overweight” ratings, suggesting their shares could rise by more than 150% if the shift pays off. Cipher’s analysts set a $38 target, while TeraWulf’s is $37—both well above current prices. The key idea: as artificial‑intelligence (AI) firms demand more computing power, they need fast and reliable energy. These former mining sites can supply that “time‑to‑power” service, which is highly prized by large cloud providers. Big tech companies are already boosting their budgets for compute and power, so they may be willing to pay extra for this ready‑made infrastructure.But the move isn’t without risk. Converting a mining warehouse into a data center can be costly and slow, and the companies must secure enough power to keep up with AI workloads. Bitcoin’s recent slump—down more than 40% from its October peak—has forced these firms to look for new revenue streams. While Cipher’s stock has risen about 6% and TeraWulf’s up 21% in the past week, Bitcoin itself fell around 10%. Morgan Stanley warns that credit issues or scaling limits in AI could slow the expansion, and any overruns in conversion costs could hurt profits. In short, if the AI boom continues, these two stocks might double in value, but investors should watch for operational hurdles and market shifts.