Bernstein, a leading research and brokerage firm, has just initiated coverage on Core Scientific and IREN. These two bitcoin miners are making waves with their innovative mix of bitcoin mining and AI data center strategies. This move highlights Bernstein’s positive outlook on the synergy between cryptocurrency mining and artificial intelligence.
Bold Bitcoin Price Predictions
Bernstein’s analysts, Gautam Chhugani and Mahika Sapra, have made some bold predictions: they see bitcoin reaching $200,000 by the end of 2025, $500,000 by the end of 2029, and an incredible $1 million by 2033. These predictions are based on expected demand from new spot Bitcoin ETFs and detailed production cost modeling. Despite current market ups and downs, Chhugani and Sapra believe bitcoin’s future looks bright, especially with more institutional investors coming on board.
Key Partnerships Driving Growth
Core Scientific and IREN have both made important deals that are boosting their positions in the market. Core Scientific recently signed a 12-year deal with AI firm CoreWeave, which is projected to bring in $3.5 billion. IREN also secured a significant deal with AI startup Poolside for Nvidia GPUs. These partnerships show how bitcoin miners are working with AI companies to create new revenue streams.
Why Bitcoin Miners Are Perfect for AI
Bitcoin miners have a unique edge when it comes to AI. Their advanced power infrastructure and operational skills make them ideal for AI data centers. “Bitcoin miners enjoy a lead in the ‘large load’ power interconnect queue vs. approval queue of more than 4 years for greenfield buildouts, thus saving ‘time to market,’” Chhugani and Sapra explained. This means they can quickly adapt their facilities for AI, thanks to high-power density racks and top-notch cooling systems.
Looking Ahead: The AI and Bitcoin Mining Mix
Bernstein expects that by the end of 2027, 20% of bitcoin miners’ power capacity will be used for AI. This shift is led by hybrid firms like Core Scientific, IREN, and Hut 8. The move towards AI is expected to stabilize revenue for bitcoin miners, providing a buffer against bitcoin’s price swings. Bernstein predicts that the top five U.S. miners will consolidate, controlling 25% of the global bitcoin hashrate, benefiting from both AI and bitcoin markets.
Market Reactions and Future Potential
Despite these promising prospects, Core Scientific and IREN shares recently dipped, closing at $9.56 and $12.82, respectively. However, Bernstein remains optimistic, setting price targets of $17 for Core Scientific and $26 for IREN, indicating significant growth potential.
Chhugani and Sapra believe bitcoin miners are currently undervalued. “Bitcoin miners are being undervalued for their ‘strategic power portfolio’ and monetisation option into AI data centers, in a ‘power’ constrained world,” they noted. The added revenue from AI provides a safety net, while the cyclical nature of bitcoin offers considerable upside.
As bitcoin mining and AI continue to merge, Bernstein’s coverage and positive projections signal an exciting future for both industries.
