logo
‘Data Center Power Crises on the Horizon': JMP Says These 3 Bitcoin Mining Stocks Could Help Save the Day

‘Data Center Power Crises on the Horizon': JMP Says These 3 Bitcoin Mining Stocks Could Help Save the Day

Yahoo30-05-2025

The AI boom, bitcoin mining, and electrical power capacity – all three generate headlines, for seemingly unrelated reasons, but the next few years will see them come together in previously unexpected ways.
Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
AI brings with it enormously expanded data centers that are notorious for increased electrical power needs. Bitcoin mining is based in data centers, and its support structure was built with power sourcing – grid connections and dedicated generation – already in mind. But the cryptocurrency sector is notoriously volatile, and often finds itself with excess data center capacity – and a need for stable revenue streams.
The three-way intersection is clear: bitcoin miners, with their combination of data center and power capacity, may be capable of stepping in and providing support for AI in the coming years.
In a note from JMP, analyst Greg Miller lays out the details: 'Critical power shortage on horizon – blockchain-focused companies are uniquely positioned. With the latest Nvidia Blackwell chip being configured at 60-120kW per rack, compared to the H100-200 at 25-45kW, and legacy chipsets at 8kW per rack, and with the anticipated launch of the Rubin chip in 2026, we anticipate power shortages that could easily exceed 40GW. With the ability to leverage existing deployments of low-cost/high-density power configurations currently present for bitcoin mining or hosting, we believe these companies are uniquely situated to provide additional space and power for data centers.'
'We think more than 5GW of incremental capacity could be provided, creating $20+ billion of potential incremental equity value (net of investment), compared with the current aggregate market capitalization of ~$ 9.0 billion.' Miller added.
Miller goes on to recommend three bitcoin mining stocks that can help save the day – and bring benefits to investors as they do so. According to the TipRanks platform, all three get Strong Buy consensus ratings from the Street; let's give them a closer look and find out what else makes them compelling choices in today's environment.
Hut 8 Mining (HUT)
We'll start with Hut 8, a Miami, Florida-based company that describes itself as much more than just a bitcoin miner. Hut 8 has its hands in multiple pots, including energy infrastructure, server hosting, managed services, and data center operations. The company's arena of operations is North America, where its activities include ten sites in Alberta, New York, and Texas for bitcoin mining, hosting, and managed services; another five sites in British Columbia and Ontario for high-performance computing, four Ontario-based power generation projects, and another recently announced site in the Texas Panhandle region.
Hut 8 may have started out as a crypto miner, but the company's current operational portfolio shows that it has expanded well beyond that. The company offers the infrastructure that today's high demands require: data servers capable of supporting cloud services and high-performance computing, and the power base to support these activities. Overall, Hut 8 has 1,020 megawatts of energy capacity under its management.
The company's current capabilities provide a strong case for Hut 8's success – but its real strength lies in its potential – and the reserves it has to realize that potential. Hut 8's development pipeline has approximately 10,800 megawatts of additional energy capacity, and as of March 31 this year, includes some 2,600 megawatts that are under exclusivity. Hut 8 also has deep pockets to support this pipeline – the company's strategic bitcoin reserve, as of March 31, stood at 10,264 bitcoins, which at current prices have a value of more than $1.11 billion.
In its financial report for 1Q25, Hut 8's total revenue came to $21.8 million, down from $51.7 million the year before, primarily due to scheduled fleet upgrades that required downtime and the April 2024 Bitcoin halving, which led to greater network difficulty. That said, the revenue breakdown shows how Hut 8 is diversifying its income – the company generated $4.4 million from power generation and managed services, $1.3 million from CPU colocation, and $16.1 million from bitcoin mining, GPUaaS, and data center cloud operations. At the bottom-line, EPS of -$1.30 beat the Street's -$1.40 forecast.
JMP's Greg Miller, in his write-up on Hut 8, notes both the diverse operations and the company's potential to expand them, writing, 'While initially focused on the high-performance compute segment of the data center industry (initially for machine learning), we can envision multiple use cases for its expertise over time. We expect Hut 8's total Megawatts deployed could reach more than 12GW in the coming five years with a significant power pipeline of 10.8GW today. We estimate that approximately ~37.5% of the capacity under exclusivity and ~8% (conservative) of the capacity under diligence (~1.4GW gross) could be used for HPC and translate to more than $1.6 billion of annual recurring revenue with EBITDA margins much higher than its legacy bitcoin mining operations. We believe it could translate into ~$74.00 of incremental value for existing shareholders over an extended time period.'
Looking ahead, Miller explains why he is bullish on HUT, saying, 'As the mix of business begins to favor powering digital infrastructure for applications other than bitcoin mining, we expect its valuation multiple will expand to reflect the success of its transition.'
These comments support Miller's Outperform (i.e., Buy) rating here, and his $25 price target implies a one-year upside potential of 48%. (To watch Miller's track record, click here)
The Strong Buy consensus rating on Hut 8 is unanimous, based on 14 recent positive recommendations. The stock is trading for $16.90 and its $25.57 average target price points toward a one-year gain of 51%. (See HUT stock forecast)
Core Scientific (CORZ)
Next on our list is Core Scientific, a company that started as a bitcoin miner and now offers high-density colocation services as well. To back up its high-tech operations, Core Scientific has built up a state-of-the-art infrastructure, including optimized power systems, advanced cooling, and thermal management. These are all essential systems in the data center industry. Core Scientific's expertise gives the company a competitive advantage in making its data centers available for high-performance computing customers.
Core Scientific has more than 1,300 megawatts of power capacity, contracted and available for rapid deployment, an important asset when marketing data centers for use in high-density computing. The company's combination of HPC and AI-capable infrastructure allows users to develop solutions at any scale. Core Scientific's scalable data center infrastructure has found applications in a wide range of industries, including AI and machine learning, cloud computing, financial services, media and entertainment, government – and that's the start of the list.
The company's expansion of its hosted mining and colocation services is helping to offset a sharp decline in self-mining revenue. Core Scientific reported $79.5 million in revenue for 1Q25, down 55% year-over-year and missing the forecast by $5.68 million. The main driver of the decline was an $82.8 million decrease in self-mining revenue. That decrease was attributed to reduced bitcoin mining since the halving, as well as the shift in operations toward colocation.
The company's quarterly revenue total included $67.2 million from self-mining operations, $3.8 million from hosted mining, and $8.6 million from colocation. Core Scientific's earnings in the quarter came to $1.25 per share, a sharp increase from the 78-cent EPS reported in 1Q24 and $1.37 better than had been expected. The company finished the quarter with $778.6 million in cash and other available assets.
Checking in again with Miller, we find that he starts with this company's power capabilities, and then shows how it can fuel a sound business model. Miller says of the firm's potential, 'Core Scientific possesses a power load capable of adding significant shareholder value. With 1.3GW of contracted power capacity in its existing markets, Core Scientific harbors the ability to allocate up to 900MW of power capacity to its new high-performance computing business model while reserving 400MW of capacity for its Bitcoin mining operation. We believe its HPC business alone (1.6GW pipeline) could be worth $48.00+ per CORZ share over time, if and when it is fully deployed.'
Getting down to the details, Miller explains how Core Scientific's strength is well grounded, adding, 'With EV/EBITDA on 2027E of ~8.0x, the stock is currently carrying the valuation of a bitcoin miner without a rapidly developing HPC business with commitments for $10 billion in overall revenues. While execution risks abound for a bitcoin miner turned scaled data center, we believe the risk/reward favors our Market Outperform rating.'
That Outperform (i.e., Buy) rating comes along with a $15 price target that indicates room for a 33% upside potential on the one-year horizon.
This stock's Strong Buy consensus rating is based on 14 unanimously positive analyst reviews. CORZ shares have a current trading price of $11.28, and the $17.79 average target price implies that the stock will appreciate by 58% over the next year. (See CORZ stock forecast)
TeraWulf (WULF)
Last up is TeraWulf. Like the firms detailed above, TeraWulf is both a bitcoin miner and a data center/high-performance computing infrastructure company. The firm develops, builds, and operates top-quality infrastructure that can fill the space between the needs of today's most innovative computer technologies and the supply of sustainable energy.
Currently, TeraWulf has 245 megawatts of operational capacity in its bitcoin mining and other data-intensive operations. The company operates these at low cost, and has realized industry-leading power rates as low as 4.5 cents per kWh. In line with its commitment to taking a sustainability-first approach to power generation, the company prioritizes zero-carbon energy sources.
Supplementing its mining business, TeraWulf has made available data centers that it describes as purpose-built and future-ready. The company's data center facilities feature prime locations, with access to low-cost and sustainable power; reliability, secured by redundant 100 GB fiber access and connections to dual 345 kV transmission lines for built-in back-up power; as well as enhanced compliance with physical and digital security standards.
The company's chief bitcoin mining operations are based in New York State, at its Lake Mariner data center facility. TeraWulf has been expanding this facility, and at the end of 1Q25 and the beginning of 2Q25, the company energized the site's Building 5, a move that brought the total capacity to 245 megawatts. Long-term, the Lake Mariner site has 750 megawatts of infrastructure capacity.
In its 1Q25 financial release, TeraWulf reported that it had increased its self-mining capacity to 12.2 EH/s, for a 52.5% year-over-year bump. The company's revenue and earnings fell year-over-year, however. Revenue dropped 18.9% year-over-year to $34.4 million, and missed the forecast by $6.84 million; earnings came in at a loss of 16 cents per share, deeper than the 3-cent loss reported in 1Q24 and 9 cents per share below expectations.
JMP's Miller notes that TeraWulf is transitioning from a bitcoin-mining-centered model to a more data-center-provider model, and sees potential for strength in the switch, writing, 'While historically a bitcoin miner, TeraWulf has begun to utilize its power expertise combined with the need for AI training facilities in the lowest-cost power locations to become a provider of space and power for the high-performance computing industry. We believe the company will be successful in monetizing its 750MW of capacity (Lake Mariner) and 400MW of capacity (Cayuga) that, net of costs, should yield an incremental ~$34.00 per share of value above the current share price, which we believe values the company's bitcoin mining operations only.'
'While there is no certainty that hyperscale companies will utilize these companies with expertise low-cost/high-capacity power management for [AI] machine learning, we believe it is highly probable, and the current sub-$4.00 (~6.0x 2027E EBITDA) valuation reflects bitcoin only,' Miller adds, summing up his view of the company.
Miller puts an Outperform (i.e., Buy) rating on this stock, and his $7 price target suggests a 12-month gain of 77.5%.
The Street has rated WULF shares as a Strong Buy, based on 7 recent reviews that include 6 Buys and 1 Hold. The stock's $3.94 trading price and $5.50 average target price together imply a 39.5% gain in store for the year ahead. (See WULF stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Disclaimer & DisclosureReport an Issue

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Joby Aviation Stock (JOBY) Takes Flight Upon Donald Trump's Executive Order
Joby Aviation Stock (JOBY) Takes Flight Upon Donald Trump's Executive Order

Yahoo

time2 hours ago

  • Yahoo

Joby Aviation Stock (JOBY) Takes Flight Upon Donald Trump's Executive Order

On Friday, June 6th, President Trump signed an Executive Order to 'unleash American drone dominance,' which included directing the Transportation Department to develop an Electric Vertical Takeoff and Landing (eVTOL) program to accelerate eVTOL operations in the U.S. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Aside from confirming the specter of space-age technology making its way onto American streets, as foreshadowed by content creators for generations, leading electric aircraft manufacturer Joby Aviation (JOBY) stands well-positioned to capitalize fully on the evolving opportunity. The company has been making headlines with major partnership announcements and impressive funding rounds. After analyzing recent developments and financial performance, I am bullish on the space and Joby Aviation's potential. Joby Aviation is playing a leading role in the transformation of the aviation industry through the development of electric vertical takeoff and landing (eVTOL) aircraft. The global eVTOL market was valued at approximately $760 million in 2024 and is projected to grow significantly, reaching an estimated $17.34 billion by 2035. Beyond aircraft manufacturing, Joby is building a comprehensive ecosystem that includes pilot training initiatives and proprietary dispatch software. This vertically integrated approach may offer substantial competitive advantages if executed effectively. While the company operates in a competitive landscape with peers such as Archer Aviation (ACHR) and EHang (EH), strategic partnerships—including a manufacturing collaboration with Toyota and operational agreements with Delta Air Lines—enhance its credibility. Additionally, contracts with the U.S. Department of Defense further diversify potential revenue streams and support the broader validation of its technology across both commercial and government sectors. Joby has been on a notable run lately, with shares climbing over 22% in the past month, thanks to several major announcements that have investors excited. One of the most significant catalysts came in May when Toyota made a substantial $250 million investment in the company, becoming Joby's largest shareholder in the process. Toyota's involvement brings decades of production expertise and operational know-how that could prove invaluable as Joby scales from prototype to mass production. Following that, Joby signed a memorandum of understanding with Saudi Arabia's Abdul Latif Jameel to explore a potentially massive $1 billion distribution deal. If finalized, this could represent a significant international expansion opportunity, with up to 200 Joby aircraft potentially deployed across Saudi Arabia. Perhaps most importantly for long-term prospects, Joby has been making steady progress through the complex Federal Aviation Administration certification process. The company recently advanced to the final phase of FAA type certification. It became the first electric vertical takeoff and landing (eVTOL) company to conduct routine pilot-on-board transition flights. This regulatory progress is crucial because it directly impacts when Joby can begin commercial operations and start generating meaningful revenue. The recent White House directive may be enough to help get these birds airborne even sooner. Joby's first-quarter net loss narrowed to $82 million from $95 million in the prior year, and the company beat earnings expectations by $0.07 per share. While cash burn continues, the trajectory suggests management is making progress on cost control as the company approaches its commercial launch. Further, its robust balance sheet is a key selling point. The company ended the first quarter of 2025 with $813 million in cash and short-term investments. The recent Toyota investment, combined with an additional $500 million commitment from the automaker, significantly strengthens this position. This financial cushion is particularly important given that Joby is still in the pre-revenue phase of its development. The company is projecting a cash burn of $500 million to $540 million in 2025, highlighting the significant capital requirements of introducing an entirely new form of transportation to the market. The current war chest provides roughly 1.5 years of operational runway at current spending levels. Even better, Joby carries zero debt, giving it tremendous financial flexibility as it works toward commercialization. The market opportunity, while potentially massive, remains largely theoretical. Consumer acceptance of air taxi services remains unproven, and regulatory frameworks for urban air mobility are still evolving. Yet, analysts following the company remain cautiously optimistic. Joby Aviation is rated a Moderate Buy overall, based on the most recent recommendations of seven analysts. Their 12-month average price target for JOBY stock is $8.86, representing a 4% downside from current levels over the next 12 months. However, various analysts are likely to shift their positions towards a more bullish stance once the full impact of Donald Trump's executive order is assimilated by market participants. Cantor analyst Andres Sheppard remains optimistic, recently reiterating an Overweight rating for JOBY stock with a $9 price target. He notes the company's strong liquidity and strategic partnerships with Toyota, Delta Air Lines, and the Department of Defense, which position JOBY as a leading contender in commercializing eVTOL technology. H.C. Wainwright's Amit Dayal shares a similar positive outlook, particularly following Toyota's significant $250 million investment aimed at supporting Joby's development efforts. Dayal anticipates a pivotal year in 2025 for the eVTOL industry, with milestones expected in certifications and piloted flights. The expectation is for Joby to produce 25–30 eVTOL units by the end of next year, with substantial revenue growth projected, reaching over $1 billion by 2029. Dayal also maintains a Buy rating with a $9 price target. Joby Aviation is a compelling investment opportunity in an embryonic industry poised to commercialize urban air transportation. The promise of flying cars, envisioned by countless visionaries over the past 100 years, is now becoming a reality, albeit gradually. JOBY has secured impressive partnerships, maintains a strong balance sheet, and is making meaningful progress toward commercialization. The company is poised to transition from an ambitious startup to a commercial aviation company. Key milestones to watch include progress on FAA certification, formalization of the Saudi Arabia partnership, and updates on manufacturing scale-up. The future of flight is here, and I am pretty bullish on the eVTOL space and the current market leaders, such as Joby, who are making it a reality. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio

This Texas metro saw least amount of inflation: analysis
This Texas metro saw least amount of inflation: analysis

Yahoo

time2 hours ago

  • Yahoo

This Texas metro saw least amount of inflation: analysis

(NEXSTAR) — Though inflation growth slowed (minimally) over the past month, consumer prices rose 2.4% in May vs. this time last year. But not everywhere in the U.S. is feeling the burn quite as much some others. Recently, financial news and resources outlet WalletHub compared 23 major U.S. metropolitan areas to find out how inflation is hitting differently, depending where you live. And one Texas city was found to have the smallest increase in inflation of all cities measured. Austin Mayor: Texas National Guard may be deployed for ICE protests To figure out the ranking, WalletHub compared these metropolitan statistical areas (MSAs) across two metrics related to the Consumer Price Index (CPI). WalletHub's Adam McCann used this inflation data to determine growth compared to two months ago and to one year ago. All-in-all, inflation grew the least in the Dallas-Fort Worth-Arlington area over these time periods, WalletHub says. The north Texas MSA had an inflation score of only 4.29 out of 100 (with 100 being the worst inflation problems). For comparison, the MSA with the highest levels of inflation growth, Boston-Cambridge-Newton, MA-NH, had an inflation score of 84.03. Here are the inflation rates for the two Texas metros WalletHub analyzed. Rank Metro Inflation score % change over past 2 months % change over past year 13. Houston-The Woodlands-Sugar Land 49.22 0.90% 1.20% 23. Dallas-Fort Worth-Arlington 4.29 0.10% 0.60% WalletHub found that the Houston-The Woodlands-Sugar Land area saw the fourth-most inflationary growth over the past two months. The Houston-area metro tied for highest consumer price growth along with Baltimore, Maryland, and Anchorage, Alaska. Can you still make money with Bitcoin? Comparatively, Dallas ranked (tied) 22nd for lowest consumer price growth over the past two months and 22nd (second to last) for lowest consumer price changes over the past year. May's CPI for the Dallas-Fort Worth-Arlington metro found that prices for items outside of food and energy decreased during the two-month period, including for household items and rent. Prices on food at home rose 0.8% and prices for food away from home rose 0.4% over the past two months. To read WalletHub's full Changes in Inflation by City analysis, visit WalletHub. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Stablecoin regulation bill easily moves toward full Senate vote
Stablecoin regulation bill easily moves toward full Senate vote

Miami Herald

time2 hours ago

  • Miami Herald

Stablecoin regulation bill easily moves toward full Senate vote

June 11 (UPI) -- The U.S. Senate overwhelmingly advanced legislation for a regulatory method for payment with stablecoins. The cloture, which ended debate, was approved 68-30, including 18 Democrats. It clears the way for final approval for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS. Two Republicans, Rand Paul of Kentucky and Josh Hawley of Missouri, voted no. A stablecoin, which supporters say is a type of cryptocurrency designed to maintain a stable value, is typically pegged to another asset such as a currency such as a U.S. dollar or a commodity, including gold. Other digital cryptocurrencies, including Bitcoin, can experience significant price fluctuations and are not part of the Senate legislation. For passage in the Senate, there needs to be at least 60 votes. On Tuesday, two House committees easily approved a bill that establishes a regulatory framework for digital assets, not just stablecoin, called the CLARITY Act. "We want to bring cryptocurrency into the mainstream, and the GENIUS Act will help us do that," said Senate Majority Leader John Thune of South Dakota, adding there was "more work to be done" for Congress in regard to digital assets, referring to the House's bill. The bill would require stablecoins to be fully backed by U.S. dollars or similar liquid assets, mandate annual audits for issuers with more than $50 billion in market capitalization and add language around foreign issuance. The cloture ended an open amendments process. Democrats had sought to add a provision that would prevent President Donald Trump and other elected officials from profiting off stablecoins. "Let me be clear, this did not happen by accident," Senate Banking Committee Chair Tim Scott, R-S.C., said on the Senate floor before the vote. "It happened because we led. To those who said Washington could not act, to those who said Washington could not act, to those who doubted bipartisanship -- let's prove them wrong." Senate Minority Leader Chuck Schumer of New York voted against the bill along with other prominent Democrats. "The GENIUS act attempts to set up some guardrails for buying and selling a type of cryptocurrency, one type called a stablecoin," Sen. Jeff Merkley, D-Ore., said on the Senate floor before his no vote. "Well, we need guardrails that ensure that government officials aren't openly asking people to buy their coins in order to increase their personal profit or their family's profit," he added. "Where are those guardrails in this bill? They're completely, totally absent." Some Democrats were concerned about foreign issuers, anti-money laundering standards, potential corporate issuance of stablecoins and Trump's deepening ties to crypto ventures. Trump and his wife, Melania, launched meme coins days before his inauguration on Jan. 20. His affiliated venture, World Liberty Financial, recently launched its stablecoin. Trump Media is planning to build a multi-billion dollar Bitcoin treasury. And American Bitcoin,a mining firm backed by his sons, Eric Trump and Donald Trump Jr., is planning to go public via a Gryphon merger. "It's extremely unhelpful that we have a president who's involved in this industry, and I would love to ban this activity, but that does not diminish the excellent work of this legislation," Sen. Kirsten Gillibrand, D-N.Y., who approved the measure, said. "It does not diminish the hard work that bipartisan group of senators put into this to make a difference and to write a law that can protect consumers, that can protect our financial services industry, that can protect the strength of the dollar, and that can protect people who would like access to capital." Massachusetts Sen. Elizabeth Warren, who voted against cloture, said: "Through his crypto business, Trump has created an efficient means to trade presidential favors like tariff exemptions, pardons and government appointments for hundreds of millions, perhaps billions of dollars from foreign governments, from billionaires and from large corporations. By passing the GENIUS Act, the Senate is not only about to bless this corruption, but to actively facilitate its expansion." Copyright 2025 UPI News Corporation. All Rights Reserved.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store