Bernstein Backs TeraWulf Over CleanSpark, Core Scientific in Texas Data Center Audit

Benzinga·08/04/2026 20:13:12

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A state-ordered review of Texas data center projects could ultimately benefit existing Bitcoin (CRYPTO: BTC) mining and AI infrastructure operators by making approved power capacity more valuable, according to a Bernstein note.

TeraWulf Better Insulated, Others Have High Exposure

Texas Gov. Greg Abbott on Monday directed the Public Utility Commission of Texas and grid operator ERCOT to audit all data center projects currently awaiting grid interconnection approval.

Following the order, ERCOT paused its "Batch Zero" review process, which was evaluating the first wave of large power users.

In a Bernstein note cited by The Block, analysts said the review is likely to delay some proposed developments but should leave existing operations unaffected.

Bernstein said slowing new grid approvals could increase the scarcity value of already-approved megawatt capacity, strengthening the competitive position of existing Bitcoin miners and AI infrastructure providers.

The firm identified Cipher Mining Inc. (NASDAQ:CIFR), CleanSpark Inc. (NASDAQ:CLSK) and Core Scientific Inc. (NASDAQ:CORZ) as companies with relatively greater exposure because portions of their near-term expansion plans depend on additional Texas grid approvals.

At the same time, Bernstein said TeraWulf Inc. (NASDAQ:WULF) is better insulated due to its geographically diversified power assets across Kentucky, Maryland and New York.

The brokerage also highlighted Riot Platforms Inc. (NASDAQ:RIOT) and IREN Ltd. (NASDAQ:IREN) as beneficiaries because they already operate substantial approved capacity within ERCOT.

Analyst Ratings

Bernstein maintained Outperform ratings on CIFR, CLSK, IREN, CORZ, RIOT and WULF, while keeping a Market-Perform rating on MARA Holdings Inc. (NASDAQ:MARA).

The analysts added that Bitcoin miners remain increasingly well-positioned to capitalize on AI infrastructure demand, noting the sector has signed agreements covering roughly 8 gigawatts of power capacity with hyperscalers, neo cloud providers and AI chipmakers across more than 20 transactions collectively valued at over $160 billion over the past two years.

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