According to Woofun AI, for the first time, UBS included five AI data center escrow stocks transformed by Bitcoin mining companies into the scope of coverage, and rarely gave all targets a buy rating, estimating that their average upside was as high as 36%.
The anchor point of this investment logic is not traditional asset size, but rather the grid access locations that these companies locked in advance in the early Bitcoin mining cycle and highly competitive low-cost electricity resources. These elements have been transformed into extremely scarce core assets in the current wave of AI infrastructure construction.
In the infrastructure report released on September 22, 2026, UBS indicated that the five companies have a total of 4.8 GW of leased capacity and an expansion pipeline of about 12 GW, but so far the market has only approved the valuation of the contracted assets. Time to power (time to power) has become a core bottleneck limiting data center expansion. The US grid interconnection queue time has been extended to more than 5 years, and the vacancy rate in the traditional data center market is less than 2%. UBS analyst Ryan Gravett emphasized that AI infrastructure is expected to add around 260 GW of capacity from 2028 to 2030, which is three times the additional capacity of about 90 GW from 2025 to 2027.
Based on this imbalance between supply and demand, UBS's price targets for the five companies showed significant upside potential: Hut 8 (HUT.US) target price of $143, with 45% upside compared to the closing price of $99 on September 18; TeraWulf (WULF.US) target price of $24, with 41% upside compared to $17; Applied Digital (APLD.US) target price of $38, with 35% upside compared to $28; Core Scientific (CORZ.US) targets $24, with 33% upside compared to $18; Cipher Digital (CIFR.US) targets $23, with 25% upside compared to $18.
According to data compiled by Woofun AI, the five companies are currently trading 12 to 18 times the 2028 EBITDA, which is significantly lower than the valuation level of traditional data center REITs such as Digital Realty (DLR.US) and Equinix (EQIX.US). UBS believes that this discount mainly reflects market concerns about execution risks, tenant concentration, and uncertainty about contract renewals in non-traditional markets, rather than lack of fundamentals.
The optimization of the tenant structure is another key variable underpinning valuation repair. Over the past two years, these companies have transitioned from Bitcoin mining companies. Early tenants were mostly new cloud vendors, and their credit often relied on the support of hyperscale vendors such as Google (GOOGL.US).
Recently, however, there has been a marked improvement in tenant credit ratings. Applied Digital (APLD.US) signed an 810MW lease between April and June 2026, with the tenant Meta (META.US) (AA rating) and Oracle (ORCL.US) (BBB rating) signing a 200MW contract, reducing the share of CoreWeave (CRWV.US) (B+ rating) from 100% to 30%. Cipher Digital (CIFR.US) signed a 286MW lease with Amazon (AMZN.US), and Amazon (AMZN.US), as a direct investor, promised to bear the cost of the overrun.
Core Scientific (CORZ.US) signed a 530MW lease with AMD (AMD.US). AMD (AMD.US) not only provides project financing support, but also holds share warrants. Hut 8 (HUT.US) signed a 704MW lease with Nvidia (NVDA.US), which provided strong credit endorsements as an AA rated tenant. TeraWolf (WULF.US) signed a 401MW lease with Anthropic for a period of 20 years. UBS estimates show that for every 100 basis points increase in capital costs, the EBITDA ratio will be reduced by about 2 times, so the introduction of high credit rating tenants can effectively reduce financing costs, thereby supporting higher valuation multiples.
As a core option, the visibility of power pipelines and differences in regional policies constitute hierarchical value. The five companies have a total of about 12 GW of unleased power pipelines, of which about 6 GW will enter the pre-lease window of hyperscale manufacturers within the next 2 to 3 years. UBS divides it into three tiers based on visibility: the first tier is high-probability opportunities within the 2027 delivery window, including 340 MW for Cipher Digital (CIFR.US), 400 MW for TeraWulf (WULF.US), and 250 MW for Applied Digital (APLD.US); the second tier is a pipeline delivered from 2028 to 2029; and the third tier is long-term options after 2030.
Cipher Digital (CIFR.US) pipelines are concentrated in Texas, where approximately 95% of capacity is located, but ERCOT's Batch Zero review process has led to uncertainty about power distribution and commissioning. Despite its 477MW capacity being within the 2027 delivery window and 70MW of the Reveille site being approved for an interconnection agreement, management says the demand environment “has never been stronger.”
In contrast, Applied Digital (APLD.US) pipelines are distributed in North Dakota, Louisiana, and Alabama, unaffected by ERCOT policies. The company locked a 1.2GW natural gas generator set through the Base Electron joint venture, which can be supplied starting in 2029, and management disclosed that it can procure approximately 700MW of electromechanical equipment each year. The Hut 8 (HUT.US) pipeline includes River Bend campus expansion options. The original lease included a maximum 1GW incremental capacity option. The company is also evaluating on-site power generation plans, possibly in partnership with Entergy (ETR.US), and American Bitcoin (ABTC.US)'s 567 MW of electricity resources can also be used as a reserve for AI.
Delivery execution progress is a key catalyst in the near future. Currently, the five companies have only delivered about 720 MW, accounting for 15% of the contracted capacity, but they will deliver an additional 1.6 GW by mid-2027, bringing the total delivery volume to 2.3 GW, accounting for 50% of the contracted capacity. Specifically, Applied Digital (APLD.US) has delivered 175 MW, or 44% of CoreWeave (CRWV.US)'s commitment; Core Scientific (CORZ.US) has delivered 437 MW, accounting for 75% of CoreWeave (CRWV.US) commitment; Cipher Digital (CIFR.US)'s Black Pearl site delivered two months ahead of schedule, Amazon ( (AMZN.US) leases have begun to generate revenue; satellite images of Hut 8 (HUT.US)'s River Bend campus show that the foundation is under construction, and the first batch of 65 MW is expected to be delivered in the second quarter of 2027.
UBS's configuration recommendations focus on three directions: scarcity of electricity access time supports rent and development yield, and Hut 8 (HUT.US) and TeraWulf (WULF.US) have the highest pipeline visibility; the tenant structure has improved from new cloud vendors to higher credit ratings, and the tenant quality of Applied Digital (APLD.US) and Cipher Digital (CIFR.US) has improved the fastest; delivery execution is a recent catalyst, Core Scientific ( CORZ.US) and Applied Digital (APLD.US) lead the delivery schedule.
This series of developments shows that the logic of mining companies' transformation to AI hosting has moved from proof of concept to substantial value delivery.