Finance

Morgan Stanley sees Cipher Mining and TeraWulf doubling via data centers

Morgan Stanley initiated coverage on Cipher Mining (CIFR) and TeraWulf (WULF) with overweight ratings, setting price targets of $38 and $37. The note frames a bitcoin-to-data-center pivot as a secular driver, with AI compute demand and hyperscaler capex underpinning potential upside as miners repurpose warehouses into AI-ready infrastructure.

📅 February 09, 2026
⏱️ 2 min read
Morgan Stanley sees Cipher Mining and TeraWulf doubling via data centers

Key Takeaways

  • Cipher Mining (CIFR) price target $38 implies ~158% upside to target.
  • TeraWulf (WULF) price target $37 implies ~159% upside to target.
  • Thesis hinges on bitcoin-to-data-center pivot fueling AI compute demand and faster deployments.
  • Hyperscalers' capex uptick and time-to-power services support premium pricing for repurposed miners.
  • Risks include credit constraints, LLM scaling limits, cost overruns, and regulatory headwinds.

People Involved

  • Stephen ByrdMorgan Stanley Analyst (lead coverage)

Entities Involved

  • Cipher Mining, Inc. (CIFR)Bitcoin mining company pivoting to data centers
  • TeraWulf Corporation (WULF)Bitcoin mining company pivoting to data centers
  • Morgan StanleyInvestment bank issuing the note/initiating coverage

MarketMoodz Analysis

The note frames a secular pivot from bitcoin mining to data-center infrastructure as a lever for upside, tying Cipher Mining and TeraWulf to AI compute demand and hyperscaler capex. For investors, the implied upside hinges on execution of conversions and the resilience of crypto-adjacent cash flows.

Historically, the sector has faced power access and grid constraints; Morgan Stanley highlights persistent bottlenecks in the US and Europe, which could delay expansion but also create pricing power for scarce capacity. With bitcoin around $70,000 and a 40% retreat from the Oct 2023 peak, the optionality of converting facilities adds optionality to miners beyond crypto cycles.

What to watch next includes credit conditions that could restrict capex, potential LLM scaling limits, cost overruns in converting warehouses, and regulatory headwinds; also monitor power access updates and data-center partnerships with AI clients.

Source: Original Article

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