AI contracts, not bitcoin, now drive miner valuations, and Cipher and TeraWulf look cheap
Analysts at Compass Point suggest that bitcoin mining companies should be valued based on their long-term AI infrastructure contracts rather than cryptocurrency market volatility. The report identifies firms like Cipher Mining and TeraWulf as undervalued, noting a shift toward recurring rental income models.
Analysts Michael Donovan and Ed Engel developed a framework that separates the value of long-term AI leases already under contract from projects that have yet to secure customers. They argue these companies should increasingly be valued like landlords that generate rental income rather than traditional bitcoin miners whose earnings depend on cryptocurrency prices.
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