AI contracts, not bitcoin, now drive miner valuations, and Cipher and TeraWulf look cheap
CoinDesk 2026-07-09 15:53:42
Context: Compass Point analysts Michael Donovan and Ed Engel have noted that the valuations of certain mining companies are being driven more by their potential in AI contracts rather than their involvement with bitcoin. This trend is particularly relevant for companies like Cipher and TeraWulf, which are reportedly trading below their contract value. The analysts argue that the market is undervaluing these companies' future AI data center pipelines.
Key Facts
- Compass Point analysts Michael Donovan and Ed Engel observed that markets are giving little credit to future AI data center pipelines despite the presence of billions of dollars in signed leases.
- The valuations of mining companies, such as Cipher and TeraWulf, are being driven more by their potential in AI contracts rather than their involvement with bitcoin.
- Cipher and TeraWulf are reportedly trading below their contract value, according to Compass Point analysts Michael Donovan and Ed Engel.