Wall Street Rewards Bitcoin Miners' AI Pivot: Bernstein And Morgan Stanley Lift Targets, But Leave MARA Behind

• Bernstein raised Core Scientific to $32 from $24 and Riot Platforms to $30 from $25, both Outperform.
• Bernstein also cut Mara Holdings’ price target to $17 from $23 while keeping a ‘Market Perform’ rating on the stock.
• Bernstein reduced its price target for MARA due to weaker first-quarter results, which showed an 18% decline in revenue to $174.6 million and a $1.3 billion net loss on Bitcoin writedowns.

A new divide is emerging among Bitcoin miners: those who have successfully monetized artificial intelligence (AI) infrastructure and those still dependent on crypto economics. This reflected in Bernstein’s actions as the brokerage firm raised price targets on Riot Platforms (RIOT) and Core Scientific (CORZ), on the back of growing AI data center values, while cutting its targets on Mara Holdings (MARA) following its weak earnings report. 

Analyst Bullish On CORZ’s AI Transformation

According to TheFly, Gautam Chhugani, a Bernstein analyst, maintained an ‘Outperform’ rating on Core Scientific (CORZ) and raised the target price from $24 to $32. The new valuation incorporates the value of the company’s transition from cryptocurrency mining to AI infrastructure, the analyst said.

CORZ stock was up over 0.06% in pre-market trade. On Stocktwits, retail sentiment around CORZ remained in the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day. From Tuesday’s closing price of $29, Bernstein sees around 10.3% upside for the stock.

RIOT’s First AI Revenue Quarter Marks ‘Inflection Point’

Similarly, Bernstein raised the price target for Riot Platforms (RIOT) to $30 from $25, while keeping an ‘Outperform’ rating on the firm. The core rationale behind the move was the company’s already operational AI infrastructure business, which the brokerage firm said was reevaluated. Riot reported its first quarter of data center revenue, recording $33.2 million in AI hosting revenue, an “inflection point" in CEO Jason Les’ words, as the company became a revenue-generating data center operator. A significant part of Riot’s value has also been tied to its planned $400 million AI expansion site at Corsicana, Texas.

RIOT stock was up over 0.6% in the pre-market trade. On Stocktwits, retail sentiment around RIOT remained in the ‘bullish’ zone, while chatter stayed at ‘high’ levels over the past day. Based on Tuesday’s closing price of $27, Bernstein analysts see an upside of nearly 10%. 

MARA’s Price Slashed Over Revenue Concerns

In contrast, Bernstein cut its price target on Mara Holdings (MARA) to $17 from $23, maintaining a ‘Market Perform’ rating, citing an updated model reflecting recent financial results. Mara, like its peers, continues to mine Bitcoin but is moving towards AI data center infrastructure, including a partnership with Starwood to convert mining sites.

MARA has disclosed its first-quarter financial data, with revenue falling 18% year on year to $174.6 million, a net loss of $1.3 billion, and a diluted loss per share of $3.31. The quarter was weighed down by Bitcoin's price decline, which resulted in roughly $1 billion of unrealized losses on the company's digital asset holdings. During the reporting period, MARA also liquidated $1.5 billion in Bitcoin to repay 33% of its outstanding debt, in an effort to avoid equity dilution.

MARA’s stock was down over 0.7% in pre-market trading. On Stocktwits, retail sentiment around MARA dropped to the ‘neutral’ zone from the ‘bullish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Morgan Stanley Joins The Bullish Camp

Bernstein wasn't alone in highlighting the AI opportunity. 

Morgan Stanley raised its price target on TeraWulf (WULF) to $66.50 from $42 and on Cipher Mining (CIFR) to $53.50 from $42.50, keeping ‘Overweight’ ratings on both.

WULF stock was up over 2% and CIFR’s stock was up over 3% in pre-market trading. On Stocktwits, retail sentiment around WULF dropped to ‘bearish’ from the ‘bullish’ zone, while retail sentiment around CIFR remained in the ‘neutral’ zone over the past day. 

This reflects the growing confidence that AI and high-performance computing demand could unlock additional value across the sector.

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