economy
February 9, 2026
Morgan Stanley says these two stocks will more than double as they pivot from bitcoin to data centers
A pair of bitcoin-linked firms could see their shares skyrocket, even as the flagship crypto retreats, due to their pivot to the data center business.
TL;DR
- Morgan Stanley initiated coverage of Cipher Mining and TeraWulf with 'overweight' ratings.
- Price targets suggest over 150% upside for both stocks.
- The companies are repurposing bitcoin mining operations into data centers for AI clients.
- Demand for AI compute-related supply and 'time to power' solutions is increasing.
- Hyperscalers are expected to pay higher premiums for these transformed data center solutions.
- Bitcoin has experienced a significant price drop from its record high.
- Potential risks include credit challenges, scaling walls for LLMs, and cost overruns in conversion.
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