Morgan Stanley initiates coverage on miners, rates MARA underweight

Morgan Stanley has released an analysis report on Bitcoin mining firms Cipher Mining (CIFR), TeraWulf (WULF), and Marathon Digital Holdings (MARA), CoinDesk reported. The bank assigned an overweight rating to both Cipher Mining and TeraWulf, while giving Marathon Digital an underweight rating. Morgan Stanley argued that these companies should be viewed as infrastructure assets rather than direct investments in Bitcoin. The report explained that if a mining company builds a data center and signs a long-term lease with a reliable partner, its investors are backing infrastructure, not the cryptocurrency. It added that such companies would be better suited for investors who prioritize stable cash flow over traders focused on Bitcoin's price volatility. The bank also noted that companies that still have Bitcoin mining as their core business are unlikely to achieve significant returns. Morgan Stanley set price targets of $38 for Cipher Mining, $37 for TeraWulf, and $8 for Marathon Digital.