"Byrd argued that once a miner has built a data center and signed a long-term lease with a creditworthy counterparty, the asset should be valued for stable, long-term cash flow rather than bitcoin exposure. He likened these sites to data center real estate investment trusts (REITs) such as Equinix (EQIX) and Digital Realty (DLR), which trade at high multiples due to scale and predictable revenue."
"Cipher Mining sits at the center of that framework. Byrd described its facilities as suited to what he called a "REIT endgame," where leased data centers function like toll roads, generating predictable cash flows with minimal reliance on bitcoin's price. TeraWulf also fits the model, with a track record of signing data center agreements and management experience in power infrastructure."
Morgan Stanley initiated coverage of three publicly traded bitcoin miners, rating Cipher Mining and TeraWulf Overweight and Marathon Digital Underweight with price targets of $38 and $37 respectively. Shares of Cipher and TeraWulf rose sharply following the coverage, while Marathon traded below its $8 target. The bank frames attractive miners as infrastructure plays, valuing built data center assets on stable, long-term cash flow akin to data center REITs. Cipher is highlighted as best positioned for a REIT-like outcome, and TeraWulf is noted for data center agreements and planned capacity expansion. Marathon's hybrid model and financing approach limit its conversion upside.
Read at Bitcoin Magazine
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