Morgan Stanley recommends Investment Directors to consider adding Bitcoin mining company stocks, noting that the industry benefits from new energy regulations and demand from AI.
According to information from Mathew Sigel, Head of Digital Assets Research at VanEck, Morgan Stanley has recommended that Investment Directors (CIOs) consider adding stocks of Bitcoin (BTC) mining companies to their investment portfolios. This recommendation stems from the view that new energy regulations for data centers will create opportunities for the Bitcoin mining industry, which consumes a large amount of energy.
Specifically, a report from Morgan Stanley sent to CIOs of large asset management companies on October 13 pointed out that new regulations requiring data centers to incorporate additional power generation sources could drive demand for energy-intensive industries, including Bitcoin mining. This trend is expected to spread to many regions, opening up investment opportunities in natural gas and nuclear power plants.
Energy demand from AI and Bitcoin drives investment
Policymakers are increasingly requiring data centers to self-generate energy to meet the growing demand from emerging technologies such as artificial intelligence (AI) and cryptocurrency mining. The Morgan Stanley report predicts that the integration of data centers with dedicated power generation will increase the value of industrial parks and reused energy infrastructure.
Specifically, with policymakers emphasizing the need to ensure "strict power supply additions", Bitcoin mining, which requires large energy consumption to maintain the integrity of the blockchain, will benefit significantly. The increasing interest of institutions in cryptocurrency mining, combined with these energy requirements, could increase the value of Bitcoin mining company stocks as many data centers adopt these power generation models.
The research team at Morgan Stanley also emphasized that the necessary infrastructure to support both AI and cryptocurrency mining is in line with the global trend towards energy efficiency and technology integration. According to the report, policymakers are creating a favorable environment for Bitcoin mining, making it a viable and profitable investment option by requiring new power generation for data centers. Therefore, the report recommends that investors adjust their investment portfolios to take advantage of these energy policies and their impacts.
The report also mentions the demographic challenges in Europe, forecasting a 4% decline in Eurozone GDP by 2040. However, energy infrastructure is still seen as a key growth area in the region. Policymakers and investors are shifting their attention to projects that connect new energy regulations and digital innovation, positioning industries like Bitcoin mining as top investment targets.
The push for CIOs to explore Bitcoin mining is taking place in the context of the industry's ability to withstand regulatory scrutiny. It is expected that institutional investments in renewable energy projects and cryptocurrencies will continue to drive optimism in the market.
