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AI data center leases, not bitcoin, drive miner valuations
Compass Point says AI infrastructure firms like Applied Digital, TeraWulf and Cipher Mining trade below the value implied by signed rental contracts.
According to a report from Compass Point cited by CoinDesk, markets are increasingly valuing cryptocurrency miners based on their AI data center business rather than bitcoin mining economics.
Compass Point analyst Michael Donovan and Ed Engel said investors are giving limited credit to future AI data center pipelines despite billions of dollars in signed leases, and they expect project completions and rent commencements over the next two years to become the key drivers of stock performance.
The firm built a framework that estimates the value of long term AI leases already under contract, then compares that figure with enterprise value to determine how much investors may be paying for unleased future development.
Using that approach, Compass Point said Applied Digital, TeraWulf and Cipher Mining show the largest gap between contracted AI rental income potential and current valuations, while Core Scientific and Riot Platforms stand out for different reasons as existing contracts become more fully reflected in their valuations.
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