Morgan Stanley: Bitcoin miners undervalued amid AI power demand

Morgan Stanley has identified a significant undervaluation in Bitcoin mining companies, arguing that their infrastructure is becoming increasingly critical as the AI industry's explosive growth makes electricity a key strategic asset. The analysis, shared on X by VanEck's Head of Research Matthew Sigel, highlights a major discrepancy in energy pricing. According to Morgan Stanley analysts, mining firms are currently valued at $2 to $7 per watt of enterprise value (EV/watt), whereas electricity in the AI cloud market trades for $13 to $15 per watt. The analysts contend that the power grid access secured by these miners is a core asset in the age of AI. With annual electricity demand for AI projected to surge by 30%, the mining sector's power infrastructure is positioned to become an essential alternative. While the poor stock performance of some miners can be attributed to high volatility and execution risks associated with smaller firms, Morgan Stanley suggested a potential ratings upgrade for companies with improved operational efficiency, such as MARA Holdings (MARA), from its current 'Underweight' position.