Morgan Stanley identifies upside in TeraWulf (WULF), Cipher Mining (CIFR), and Marathon Digital (MARA) after bitcoin miners pivot to AI data-center leasing.

Morgan Stanley raised price targets for Bitcoin mining companies making the transition to data center operations on Monday. Analyst Stephen Byrd lifted the price target on TeraWulf (WULF) to $41.50 from $37 and on Cipher Mining (CIFR) to $40.50 from $38, maintaining 'Overweight' ratings on both stocks. Byrd argued that valuations tied to Bitcoin miners converting capacity into data center operations were becoming "increasingly attractive," with "significant base case upside."

The stocks responded positively in morning trading. WULF rose over 3%, though retail sentiment on Stocktwits shifted to 'bearish' from 'neutral' while chatter decreased to 'low' from 'normal'. CIFR gained 1%, with sentiment moving to 'neutral' from 'bullish' while chatter remained 'normal'.

Morgan Stanley offered a more measured outlook on MARA Holdings, raising its price target to $8.50 from $8 while maintaining an 'Underweight' rating—signaling a more cautious stance relative to peers. MARA's stock declined 0.3% in morning trade, with retail sentiment shifting to 'bearish' from 'neutral' and chatter remaining 'high'.

The bank's bullish calls reflect a broader industry pivot. Many top companies have shifted toward high-performance computing and artificial intelligence infrastructure in recent months. Examples include Hut 8 Corp, Riot Platforms, and Iren Limited, all of which have announced initiatives to diversify beyond traditional Bitcoin mining.