Jul. 23 at 8:48 PM
Morgan Stanley initiated coverage of several bitcoin miners that are pivoting toward AI infrastructure, arguing that companies with large grid-connected power assets are well positioned to benefit from surging demand for AI data centers.
The firm said electricity has become the biggest bottleneck for AI infrastructure, making existing bitcoin mining sites attractive candidates for conversion into AI data centers. Morgan Stanley expects AI compute demand to continue outpacing supply through at least 2028, allowing owners of powered facilities to secure favorable leasing agreements with hyperscalers and AI developers seeking faster access to electricity.
Morgan Stanley launched coverage with Overweight ratings on Hut 8 and Riot Platforms, while assigning Equal-Weight to Applied Digital. Hut 8 was named the firm's top pick, with a
$263 price target, citing its strong portfolio of power assets and success in securing AI infrastructure leases.
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