Wall Street is arguing that a group of former Bitcoin mining companies could emerge as major beneficiaries of the artificial intelligence infrastructure boom, thanks to one increasingly scarce asset: access to power.
Investors believe that AI data center demand is rapidly outpacing supply, especially as hyperscalers race to secure electricity for model training and inference. According to Jefferies, the companies’ legacy Bitcoin mining operations gave them early access to large power footprints that are now far more valuable in the AI era.
Jefferies analysts launched ratings on five companies transitioning from cryptocurrency mining into AI-focused data center development. The firm assigned Buy ratings to Cipher Mining Inc (NASDAQ:CIFR), Hut 8 Corp (NASDAQ:HUT), Terawulf Inc (NASDAQ:WULF), and Core Scientific Inc (NASDAQ:CORZ), while initiating Riot Platforms (NASDAQ:RIOT) with a Hold rating.
“Power availability is the binding constraint,” the analysts wrote, forecasting that North America will add roughly 66 gigawatts of new data center capacity between 2025 and 2030 — still insufficient to meet expected demand.
Analysts noted a widening mismatch between data center leasing activity and actual construction deliveries. In 2025 alone, more than 15 GW of colocation leases were signed while only 3.3 GW of capacity was delivered, according to Jefferies estimates.
Jefferies estimates that the North American colocation data center market could expand from roughly $30 billion in annual revenue in 2025 to approximately $92 billion by 2030, dwarfing the shrinking economics of Bitcoin mining.
Among the firms covered, Jefferies identified tenant quality, financing capability, and execution as the key differentiators. Companies securing investment-grade hyperscaler tenants — including deals linked to Amazon, Google, and other large cloud operators — are expected to receive cheaper financing and higher valuations.
The analysts were particularly positive on Cipher Digital and Hut 8, citing their relationships with hyperscalers and Google-backed cloud provider Fluidstack. Meanwhile, Core Scientific was praised for already delivering 243 MW of AI infrastructure capacity, the highest among peers.
Riot Platforms received a more cautious assessment despite its large Texas footprint. Jefferies said investors remain skeptical about Riot’s ability to secure a major hyperscaler lease beyond its existing AMD retrofit agreement.
However, market players are still wary that regulatory pressures are tightening the market further. Multiple U.S. states, including Virginia, Georgia, Pennsylvania, and Maine, are considering or implementing restrictions on new data center developments due to concerns about electricity demand, water usage, and environmental impact.
source https://www.investing.com/news/stock-market-news/ai-boom-turns-bitcoin-miners-into-wall-streets-hottest-data-center-bet-4689600
