Bitcoin (BTCUSD) and related assets are in focus today as investors flock to the “Trump trade,” but the potential for a second Donald Trump term isn't the only reason investors should be eyeing this section of the market. Last week, Bernstein analyst Gautam Chhugani initiated coverage Core Scientific (CORZ) and Iris Energy (IREN) with an “Outperform” rating, explaining in an investor note that Bitcoin mining companies are positioned to participate in the artificial intelligence (AI) data center boom by leveraging their existing power infrastructure and operational capabilities.
According to Bernstein, miners control 6 gigawatts of power access, and will increase this number to 12 gigawatts by 2027, which is enough to power 9 million homes. The investment bank expects around a fifth of the power capacity for miners to pivot to AI by the end of 2027. Additionally, Chhugani expects that the growing adoption of Bitcoin and rising prices to help crypto mining stocks deliver outsized gains in the current cycle.
