“The nine miners I cover I think are up roughly like 93% on average from the start of April. So they've absorbed more of their forward HPC or AI opportunity over the last few months and valuations are more full than they were.”
The AI CAPEX cycle is in full swing, with public bitcoin miners-turned AI firms soaking up investor dollars.
KBW senior analyst Stephen Glagola said that, more than time to power, “the more emerging durable moat at least from the co-location side is execution against hyperscalers standards and developing those relationships.”
But with all of this money flying around, he said he is cautious “on the demand side.” Put more bluntly: will these AI centers bring in enough revenue to justify all of this infrastructure buildout?
“Is there profitability justifying the return on investment, justifying all this spend at the bottom of the stack?
“And so you have a big delta right now between the trillions of dollars being spent on the bottom of the stack and the end revenue on the top of the stack. And most of it's coming from two companies: OpenAI and Anthropic. And you know you have to see that delta start narrowing or compressing over time.”
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