U.S. investment bank Compass Point released a report, analyzing that artificial intelligence (AI) contracts, not Bitcoin, are determining the value of mining companies, and even these are undervalued. According to CoinDesk, Compass Point stated, "A number of Bitcoin mining companies are transitioning to AI data centers. These companies should be valued like landlords generating rental income, rather than by the traditional method of profiting from cryptocurrency prices. In that sense, Applied Digital (APLD), Terawulf (WULF), and Cipher Digital (CIFR) are undervalued. The market assigns little to no value to unleased capacity, despite the potential to generate significant rental income." It added, "The next two years will be a turning point for this sector. Companies will move from announcing AI infrastructure development contracts to actual construction. Once projects are completed and rents begin to be paid, investors will gain a clearer understanding of the sustainable cash flow these facilities can generate."
