Morgan Stanley Rates Bitcoin Miners: Cipher and TeraWulf as Buys, Marathon Digital as Sell
- Morgan Stanley initiated coverage on three bitcoin mining companies, with Bitcoin priced at $70,516.35.
- Analyst Byrd favored Cipher and TeraWulf for their focus on data center leasing over traditional mining.
- Byrd compared these mining operations to data center real estate investment trusts (REITs) like Equinix and Digital Realty.
- Cipher’s strategy may lead to a “REIT endgame,” shifting from self-mining to leasing space for predictable cash flows.
- Marathon Digital was rated lower due to its reliance on Bitcoin price fluctuations and limited history in hosting data centers.
The analysis highlights a shift in how investors might view mining companies, emphasizing long-term infrastructure investments over speculative trading based on Bitcoin prices.
Overall, Morgan Stanley’s coverage suggests that while Cipher and TeraWulf have potential for stable cash flows, Marathon Digital faces challenges tied directly to the volatility of Bitcoin.
