Morgan Stanley urges CIOs to explore Bitcoin mining stocks amid rising energy prospects Morgan Stanley urges CIOs to explore Bitcoin mining stocks amid rising energy prospects
Morgan Stanley said that new energy mandates are poised to boost Bitcoin mining investments through innovative power generation models.
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Updated: Oct. 14, 2024 at 6:16 pm UTC
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Wall Street giant Morgan Stanley’s global head of research recommended chief investment officers (CIOs) to consider adding Bitcoin (BTC) mining stocks to their portfolios as new opportunities emerge in energy infrastructure, VanEck head of digital assets research Mathew Sigel shared in a social media post on Oct. 14.
The recommendation, included in a recent briefing sent to CIOs of major asset management firms, highlighted how new mandates for data centers to incorporate additional power generation could drive demand for energy-intensive industries like Bitcoin mining.
The report suggested that these mandates could spread across multiple regions, expanding the scope for new investments in natural gas-fired plants and nuclear power.
Policies for new power generation
The briefing specifically noted that policymakers increasingly require data centers to source their own power to meet rising energy demands from emerging technologies such as artificial intelligence (AI) and crypto mining.
By coupling data centers with dedicated power generation, the report projected a surge in the value of repurposed industrial sites and energy-driven facilities. The report explained that as policymakers emphasize “strict power additionality,” Bitcoin mining operations, which require large-scale energy consumption to maintain the blockchain’s integrity, stand to gain significantly.
The growing institutional interest in mining, coupled with these energy mandates, could lift the value of Bitcoin mining stocks as more data centers adopt these power-generation models.
AI infrastructure ties into Bitcoin mining
Morgan Stanley’s research team also stressed that the infrastructure needed to support both AI and crypto mining aligns with a broader global shift toward energy efficiency and technological integration.
According to the report, policymakers are shaping a landscape where Bitcoin mining becomes a viable and profitable investment option by requiring new power generation for data centers. It added that investors should consider adjusting their portfolios to capitalize on these energy policies and their implications.
The report also highlighted Europe’s demographic challenges, projecting a 4% decline in the Euro Area’s GDP by 2040. Despite this, it emphasized that energy infrastructure remains the primary area for growth in the region.
Policymakers and investors alike have turned their attention to projects that bridge the gap between new energy mandates and digital innovation, positioning industries like Bitcoin mining as prime targets for investment.
This push for CIOs to explore Bitcoin mining comes as the sector shows resilience in the face of regulatory scrutiny, with expectations of continued institutional investment in renewable energy projects and digital currencies driving market optimism.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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VanEck is a global investment manager with offices around the world, including New York, Australia, China, Germany, Netherlands and Switzerland.
