Morgan Stanley backs Cipher (CIFR) and TeraWulf (WULF), but is cool on Marathon (MARA)

Morgan Stanley analyst Stephen Byrd initiated coverage on three public bitcoin mining companies, favoring Cipher Mining (CIFR) and TeraWulf (WULF) with Overweight ratings and price targets of $38 and $37, respectively, while initiating Marathon Digital (MARA) with an Underweight rating and an $8 target.

The core argument for favoring CIFR and WULF is viewing their data center assets as infrastructure rather than pure crypto bets. Byrd suggests that once a miner secures a data center with a long-term lease to a creditworthy counterparty, the asset should be valued by infrastructure investors for stable cash flow, comparing them to data center REITs like Equinix and Digital Realty.

Cipher is seen as having a potential "REIT endgame" by shifting from self-mining to leasing space to large customers, making cash flows predictable. TeraWulf is supported by its track record in signing data center agreements and management's power infrastructure experience. Conversely, Marathon is viewed less favorably due to its hybrid strategy, which maximizes exposure to bitcoin's price, and its limited history in hosting data centers, leading to the conclusion that mining economics remain the dominant, riskier driver for MARA's stock value.

(Source：CoinDesk)