How Wall Street prices cryptocurrency miners is being rewritten, and according to a new analysis from Compass Point, artificial intelligence infrastructure deals — not bitcoin production — have become the primary driver of valuations. The firm argues that investors haven't fully priced in those contracts, leaving miners like Cipher and TeraWulf trading at what it considers bargain levels.
A New Yardstick for Miner Valuations
Compass Point analysts Michael Donovan and Ed Engel contend that the market is assigning little to no value to the AI data center pipelines several miners have spent recent years building. Even with billions of dollars in signed lease agreements already on the books, share prices fail to reflect the long-term revenue those deals are designed to produce, the analysts wrote.
The result, in their reading, is a widening gap between where these stocks trade and the guaranteed income locked into their hosting arrangements. Investors, they suggest, are still evaluating the companies primarily through the volatile lens of bitcoin mining rather than the steadier cash flows tied to AI tenants.
Markets are treating billions in signed AI lease deals as if they were worth almost nothing.
Cipher and TeraWulf Singled Out
Among the names Compass Point highlighted, Cipher and TeraWulf stood out as trading below the value implied by their contractual commitments. The analysts argue both companies offer meaningful upside for investors willing to look past traditional mining metrics and focus on the predictable revenue baked into their long-term agreements.
That disconnect, the firm says, is precisely where the opportunity lies. As the industry's economics shift, the value of a miner increasingly hinges on the strength and duration of its data center contracts rather than its exposure to token prices.
An Industry Pivoting to AI
The observation reflects a broader realignment across the mining sector. With bitcoin economics remaining unpredictable — buffeted by token prices, energy costs and network difficulty — many operators have moved to diversify by hosting high-performance computing and AI workloads within their existing facilities.
Several factors are accelerating that shift:
- Signed multibillion-dollar lease agreements with AI and data center tenants
- Existing power infrastructure that can be repurposed for computing demand
- Revenue streams that are steadier than bitcoin mining income
If Compass Point's thesis holds, the miners that have quietly assembled robust AI pip