Top Bitcoin Mining Stocks Rated ‘Outperform’ by Bernstein: What You Need to Know!

Bernstein's Bold Ratings on Bitcoin Mining Stocks

Investment firm Bernstein has issued an outperform rating on several Bitcoin (BTC) mining stocks, namely Riot Platforms (RIOT), CleanSpark (CLSK), Iris Energy (IREN), and Core Scientific (CORZ). In contrast, Marathon Digital Holdings (MARA) was rated as market-perform.

Riot Platforms: A Powerhouse in the Making

Bernstein commended Riot Platforms for its significant operational power capacity and ambitious expansion plans. The report highlights:

• 1GW site in Corsicana, Texas expected to be energized over 2024-25.
• Recent acquisition of Block mining with 60 MW operational capacity, expandable to 300 MW.
• Despite currently lagging in production efficiency, improvements were noted in July due to the adoption of the latest S19 XP mining rigs.
• Expected to exceed 36 EH/s hash rate by the end of 2024.

CleanSpark: Efficiency Leader

CleanSpark received accolades for its energy efficiency and realized hash rate. Key points include:

• Positioned as one of the top three Bitcoin producers, alongside Marathon and Core.
• Stands out due to its focus on operational efficiency and higher uptime.

Iris Energy: Ambitious Growth

Iris Energy is recognized for its expansion plans, particularly two mega sites in Texas. Noteworthy aspects:

• Potential expansion into the AI sector, having appointed Morgan Stanley to explore AI deals.
• Expected to exceed 30 EH/s by Q4 2024, fueled by its 750 MW site in Childress, Texas.

Core Scientific: Cost Efficiency and AI Strategy

Core Scientific is highlighted for its cost efficiency and pioneering AI strategy. The report mentions:

• Best-in-class hash cost, driven by low power costs and controlled SG&A costs.
• A significant $6.7Bn co-hosting contract with CoreWeave for AI/HPC Data centers.

Marathon Digital: An Improving Narrative

While rated as market-perform, Bernstein acknowledged Marathon's strengths:

• Largest in self-mining and co-hosting scale.
• Recognized as one of the top Bitcoin producers, but seen as an improving story pending its transition to self-owned sites to minimize reliance on hosting partners.

Future Outlook

Analysts expect mining margins to improve in Q4 2024, driven by a potential Bitcoin bull cycle, particularly influenced by fresh institutional ETF flows. Additionally, improved mining costs are anticipated as miners implement the latest generation rigs at scale, leading to operational leverage.