Compass Point Says Bitcoin Miners Pivoting to AI Data Centers Are Undervalued
Summary
- Compass Point said Bitcoin mining companies shifting into the AI data center business remain undervalued.
- The firm named Applied Digital (APLD), TeraWulf (WULF) and Cipher Mining (CIFR) as undervalued companies, saying unleased data center capacity has the potential to generate substantial rental income over time.
- Compass Point said the next two years will be an inflection point, and that once projects are completed and rent payments begin, investors will have a clearer picture of the facilities' recurring cash flow.
Forecast Trend Report by Period
Compass Point said Bitcoin miners pivoting to AI data centers remain undervalued.
CoinDesk reported that the US investment bank said many Bitcoin mining companies are shifting toward AI data centers and should now be valued less like businesses whose earnings depend on cryptocurrency prices and more like landlords that generate rental income.
Compass Point named Applied Digital (APLD), TeraWulf (WULF) and Cipher Mining (CIFR) as undervalued stocks.
The market is assigning little value to data center capacity that has not yet been leased, it said, even though that capacity has the potential to generate substantial rental income over time.
The next two years will be an inflection point, according to Compass Point. As projects are completed and rent payments begin, investors will get a clearer picture of the recurring cash flow those facilities can produce.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.