Catenaa, February 10, 2026 – Morgan Stanley analysts flagged two stocks with significant upside as they transition from Bitcoin mining to data-center infrastructure. The firm initiated coverage on Cipher Mining and TeraWulf, giving each an overweight rating in a note published Monday.
Both companies are shifting business models. Instead of focusing solely on cryptocurrency mining, they are converting facilities to host data-center operations. This change taps into surging demand for artificial intelligence and cloud computing infrastructure.
Morgan Stanley set a $38 price target for Cipher Mining. That implies a strong premium to the company’s recent trading levels. For TeraWulf, the firm assigned a $37 target. Analysts argue both firms can attract longer-term, stable cash flows from leased data capacity.
The research team described the approach as similar to how data-center REITs trade. Their models assume infrastructure investors will pay a premium for contracted revenue and power-rich data assets.
Morgan Stanley also initiated coverage of Marathon Digital with an underweight rating, citing its hybrid strategy and limited history in data-center hosting. The firm set an $8 price target for Marathon.
The focus on data centers reflects broader demand trends. Global investment in AI and cloud compute capacity continues to grow. Major technology companies are expanding data-center footprints, increasing demand for power and space worldwide.
Investors reacted positively to the overweight calls. Shares of Cipher Mining and TeraWulf saw gains in early trading following the research note. The move underscores growing interest in infrastructure plays that combine traditional tech demand with emerging digital assets.
Analysts say the data-center shift could unlock value for miners that successfully rebrand as infrastructure providers. The transition, however, requires ongoing capital investment and execution discipline.
