A major investment bank has published new valuations on three major publicly traded Bitcoin mining companies. In the report published by the company, Cipher Mining and TeraWulf were evaluated as businesses with high return potential. Marathon Digital, on the other hand, was examined with a more cautious approach.
Assessments and Goals
Cipher Mining operates as a cryptocurrency mining company based in New York, and the company’s performance in the stock market since the beginning of the year has been remarkable. In corporate analyses, a price target of $38 was set for Cipher Mining and $37 for TeraWulf. Following these developments, Cipher Mining’s share value increased by 134 percent to $16.50, and TeraWulf’s share increased by 13 percent to $16.20. Although Marathon Digital’s share price increased to $ 8.28, it did not exceed the target of $ 8.
New Approach in Bitcoin Mining
According to the investment bank’s report, some crypto miners are moving away from traditional activities and becoming infrastructure providers. Analyst Stephen Byrd and his team point out the potential of companies with data center infrastructure and long-term lease agreements to generate stable and long-term cash flows.
Bitcoin mining facilities were evaluated as assets that could generate permanent income with lease agreements, and it was stated that this model was similar to traditional data center companies.
Cipher Mining and TeraWulf are among the companies that most clearly implement infrastructure transformation. It is stated that it is possible for Cipher Mining’s facilities to evolve into a business model based on rental income in the future. TeraWulf stands out with its management experience in energy infrastructure and data center fields. The company aims to add 250 megawatts of data center capacity annually by 2032, and different models of success rates are put forward under this plan.
Strategic Orientations of Companies
Marathon Digital’s operating model differs from the other two companies. According to the analyst team, Marathon Digital’s combination of Bitcoin mining and data center operations limits the company’s transformation potential. It is noteworthy that the company is largely dependent on Bitcoin prices in its valuation.
It was reported that Marathon Digital’s history in data centers is limited and the return on mining investments has been historically low.
It is also observed that some large-scale mining companies are leaving traditional mining and turning to artificial intelligence and cloud infrastructure projects under current market conditions. Moves of companies to obtain fixed income through long-term contracts stand out.
Decreasing revenue margins and halving processes in the crypto mining industry direct companies to invest in digital infrastructure and high-performance data centers. Many companies operating in the sector aim to create stable income models with artificial intelligence, energy management and long-term rental agreements.
