In a research note released Wednesday, Bernstein analysts evaluated 12 Bitcoin mining companies, spotlighting significant growth potential for those that enhance their power strategies and efficiency. The analysis indicates that Bitcoin miners could reduce their current 90% valuation discount compared to traditional data centers by optimizing power usage and adopting advanced efficiency measures.
Key players like Riot Platforms (RIOT), CleanSpark (CLSK), and Iris Energy (IREN) remain favorites among Bernstein analysts. The report also discussed Bitcoin holding strategies and the impact of next-generation mining chips. Analysts believe there is “significant upside from extracting more Bitcoin hash rate from their existing portfolio by upgrading their fleets to the latest generation ASICs.”
Regarding power efficiency and uptime, the analysts noted that Iris Energy and CleanSpark excel in these areas, while Core Scientific (CORZ) performs well in data center uptime. They expect efficiency improvements for some companies, stating, “We believe RIOT efficiency should get better as it energizes its large power sites, and [Marathon Digital] efficiency should improve as it grows its self-mining portfolio.”
Bernstein’s analysis extended to the miners’ Bitcoin holdings and selling strategies. Large consolidators like Marathon Digital Holdings, Riot Platforms, and CleanSpark hold substantial Bitcoin on their balance sheets, selling a smaller percentage of their production compared to 2023. In contrast, smaller or mid-scale miners like Core Scientific, Iris Energy, and TeraWulf (WULF) typically sell 100% of their production to fund operations.
Bernstein analysts maintained an Outperform rating on Core Scientific with a $17 price target, Iris Energy with a $26 target, Riot Platforms with a $22 target, and CleanSpark with a $30 target. However, Marathon Digital received a Market-Perform rating, with a price target of $23.
