Bitcoin Mining Stocks TeraWulf, Cipher Mining Are Climbing Fast Despite Bitcoin Bloodbath

Bitcoin prices appear to stabilise near the $70,000 mark after testing the $60,000 level in recent days. The major price correction has wiped out trillions of dollars from cryptocurrency markets.
Many have said this could be the end of Bitcoin, as falling BTC prices triggered panic-selling across the crypto ecosystem. Analysts believe poor liquidity and a deteriorating macroeconomic environment are driving the bitcoin crash.

Famed investor Michael Burry has also said he sees no reason why the digital asset would not decline further. He highlighted that a continued price drop could push crypto miners towards bankruptcy and push the balance sheets of major corporate BTC holders, such as Strategy, into the red.

Trends have suggested he was partly right, as bitcoin miners unplugged crypto mining rigs amid the price crash and higher power costs. A Bitcoin mining revenue metric fell to a record low as major mining firms powered down operations. The hash price index, which indicates mining revenue value per unit of computing power, fell to $0.03 per terahash, compared with $3.50 in 2017. However, two bitcoin mining stocks, Cipher Mining and TeraWulf, surged 13.7% and 16.5% respectively on Monday, while other crypto stocks showed mixed performance.

Bitcoin Mining to Alleviate AI Compute Shortage

Cipher Mining and TeraWulf shares surged early on Monday, while other crypto stocks were mixed, after Morgan Stanley initiated coverage of the two companies based on their artificial intelligence (AI) potential. The brokerage initiated coverage of Cipher Mining and TeraWulf with an 'Overweight' rating, expressing a bullish view on the 'increasingly attractive' valuations of BTC-to-data-centre plays.

Morgan Stanley forecast a 'significant upside' for the two companies. 'Our analysis shows a systemic shortage of AI compute-related supply, which drives the need for increasing volumes of "time to power" solutions. Even if [data-centre] developers secured all large US and European bitcoin company power access, they would still, in our view, be short of access to power,' the analysts wrote.

The brokerage forecast a power bottleneck between 2025 and 2028 totalling 49 gigawatts. Furthermore, it expects US data-centre developers will face a power shortfall of 9 GW to 18 GW through 2028, even factoring in all 'time to power' solutions and bitcoin site conversions.

Morgan Stanley believes TeraWulf has a track record of developing power infrastructure, with several bitcoin-to-data-centre conversion deals with clients. TeraWulf has a 'viable path to significant annual growth in power and data-centre capacity,' according to the research note.

Meanwhile, Cipher Mining also has similar growth potential from bitcoin-to-data-centre conversions. Morgan Stanley has 12-month stock price targets for TeraWulf and Cipher Mining of $37 and $38 per share, respectively, implying upside of more than 150% for each.

JPMorgan Remains Bullish on Bitcoin

JPMorgan recently shared a contrarian view on Bitcoin, stating that the token's attractiveness compared with gold has improved following the precious metal's recent rally and increased volatility. The bank said shifting volatility dynamics and a widening performance gap are making Bitcoin increasingly lucrative for long-term investors. JPMorgan added that, although BTC has struggled in 2026, liquidation activity in cryptocurrency markets remains modest, and selling pressure has been relatively contained compared with prior downturns.

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