Morgan Stanley urges CIOs to explore Bitcoin mining stocks amid rising energy outlook.
The head of global research at Wall Street giant Morgan Stanley recommended chief investment officers (CIOs) consider adding Bitcoin (BTC) mining stocks to their portfolios as new opportunities emerge in energy infrastructure, says VanEck’s head of digital assets research. Mathew Sigel shared in a social media post. October 14th.
This recommendation, included in a recent briefing sent to CIOs of major asset management firms, highlighted how new mandates to integrate additional power generation into data centers could drive demand for energy-intensive industries such as Bitcoin mining.
The report suggests that these obligations could spread across multiple regions, broadening the scope for new investments in natural gas plants and nuclear power.
new development policy
The briefing specifically noted that policymakers are increasingly requiring data centers to provide their own power to meet the growing energy demands of emerging technologies such as artificial intelligence (AI) and cryptocurrency mining.
The report predicts that the value of repurposed industrial sites and energy infrastructure will skyrocket by combining data centers with dedicated power generation facilities. Bitcoin mining operations, which require massive energy consumption to maintain the integrity of the blockchain, could benefit significantly as policymakers emphasize “strict power additionality,” the report explained.
The growing institutional interest in mining, along with these energy mandates, could increase the value of Bitcoin mining stocks as more data centers adopt this model of power generation.
AI Infrastructure Connected to Bitcoin Mining
Morgan Stanley’s research team also highlighted that the infrastructure needed to support both AI and cryptocurrency mining is consistent with broader global shifts toward energy efficiency and technology integration.
According to the report, by requiring new power generation in data centers, policymakers are creating an environment in which Bitcoin mining becomes a viable and profitable investment option. He added that investors should consider adjusting their portfolios to take advantage of these energy policies and their impacts.
The report also highlighted Europe’s demographic challenges, predicting a 4% decline in euro area GDP by 2040. Nonetheless, the report highlighted that energy infrastructure remains a key area of 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, making industries like Bitcoin mining prime investment targets.
This push for CIOs to explore Bitcoin mining comes as the sector demonstrates resilience in the face of regulatory scrutiny, with expectations of renewable energy projects driving market optimism and continued institutional investment in the digital currency. .
